Inventory In Soap Industry

CHAPTER 1

1.1 INTRODUCTION ABOUT INTERNSHIP Inventory is the stock stored that has a resale value in order to gain a profit to the company. It represents the huge cost of the company especially for the business firms, wholesalers and retailers. It can be stated as “piles of money” on the storage shelf. In normal circumstances, it represents the 20% - 30% of the total investment of company. Therefore, the inventory must be correctly managed in order to facilitate the company operation. This study elaborates the various costs associated to the inventory and the relation of the cost with profit. Further it discusses the various methods that can minimize the cost and maximize the profit by a good inventory control system.

Inventory control is

it was discovered that many soaps were being produced throughout Europe and that the ingredients in these productions of soap started to differ from region to region. For example in Europe in the southern part, vegetable oils were used, while in northern part tallow (cow fat) was usually used. In Colonial America, lye was made by mixing water and wood ashes in a barrel with small holes in the bottom and then catching the drippings. Since the manufacturing of soap needs fat as well as lye, this usually have the butchering of farm animals. So, as a result, soap manufacturing industries developed in these different regions, and each manufactured its own kind of soap. Soap manufacturing companies did not begin to appear until the early 19th

High cost due to excessive Labor force. As labor force is more the cost incurred on them is more .The labor efficiency is less. Low turnover resulting in low profits. Because of the excessive cost incurred on labors and high expenditure and lack of supply of raw materials. Defective marketing strategy lacks effective advertising and publicity. Because they think brand name is enough for the company to grow. Needs upgrading of plant and machinery. As old techniques of production and oil extraction are followed by the company, it can be a weakness.

OPPORTUNITIES The cleaning soap and the detergents market is an over expanding industry and a major company likes KS& DL with its manufacturing expertise can call the shots if it reaches peak manufacturing capacity. Good export market should tap foreign market vigorously. It exports to countries like - American countries, Middle East, Asian countries, Australia, European countries, African countries. At present it has Good raw material sources to enhance production. As they are conducting programs on rising sandalwood trees to farmers, they directly take materials from the farmers. The total market share can be improved drastically by increasing the promotional activities.

THREATS

Competition faced from other global