INVENTORY

MANAGEMENT
Assignment#1:

Submitted By: Muhammad Ikram Gohar

Class: MBA (SCM)(2.5 Years, 4th semester)
Roll No. 12
Submitted to: Sir Faisal Sultan
 Assignment No. 1
Alkaram studios
Providing premium quality clothes at discounted rates in Pakistan, Alkaram Studio is one of the
fastest growing and reliable online clothing shopping store in Pakistan. Alkaram sale the quality
stitched and unstitched digital lawn suits for women and variety men, and kids wear as well.
Being the leading brand in fashion fabrics and home textiles, Alkaram offers the most stylish,
trending, and high-quality products which add colors in the life of our buyers. Alkaram online
store brings the best of the best; all under one roof. Not only the family members; even the beds
at home, can be dressed with intricately designed patterns. Alkaram lawn prices are reasonable
for a majority of families.
Question no.1: Considering any Fashion Brand like J., Amer Adnan and Khadi etc discuss the
role of supply chain and elaborate the terms like continuous use of supply chain activities and
values of customers.
Answer:
A supply chain consists of all parties involved, directly or indirectly, in fulfilling a customer
request. The supply chain includes not only the manufacturers and suppliers, but also
transporters, warehouses, retailers, and even customer themselves. Each stage in a supply chain
is connected through the flow of products, information and fund. These flows often occur in both
directions and may be managed by one of the stages or an intermediary. Here we can see raw
materials supplier supply industrial product to the manufacturer, and make the product sale to
distributor, distributor sale this product to the retailer by small lot, and final consumer get the
product from the retailer.
Roles Of Supply Chain Management:
a traditional supply chain and manufacturing processes relied on experience and intuition of
managers and were designed with long supply cycle times, large batch sizes, capacity based on
annual volumes, volume-driven technology, and numerous suppliers for the same parts on the
short-term base contracts. With traditional management processes, the goal of business activities
was to maximize the efficiency of an individual functional unit by achieving competitive edges
based on cost reduction. SCM is designed to solve these problems and is important to reduce
inventory investment in the chain, to increase customer service, and to help build a competitive
advantage for the channel. With a changing management focus, companies also began to realize
that maximization of efficiency in one department or one functional unit is less desirable than
optimal performance for the whole company.
The four phases of supply management all require many perspectives & inputs best obtained
through a cross-functional approach. These four phases of supply management are as follows:
• Generation of Requirements: The generation of requirements is a critical activity that results
in the identification of the optimal materials & services to purchase, together with the
development of specifications & statements of work describing these requirements.
Approximately 85 percent of the cost of purchased material, services & equipment is “designed
in” during this phase. Thus supply management should be involved up-front during the
generation of requirements to ensure that all commercial issues such as cost, availability,
substitutes & so on, receive appropriate consideration.
• Sourcing: The objective of sourcing is the identification & selection of the supplier whose
costs, qualities, technologies, timeliness, dependability & service best meet the firm’s needs. The
development of supply alliances is a sourcing activity.
• Pricing: The objective of pricing is the development of prices that appropriately reward the
supplier for its efforts & which result in the lowest total costs of ownership for the customer
firm. While negotiations occur throughout the supply management process, their most significant
role normally is during the pricing phase.
 The classic objective of logistics is to be able to have the right products in the right
quantities (at the right place) at the right moment at minimal cost
  Metrics and Data Collection:
Today's supply chains are too complicated to be controlled based on intuition. It is
necessary to have access to statistical data on the performance of the supply chain.

 Inventory Management In The Supply Chain:

Inventory management is one aspect of SCM. The main goal of SCM is to better manage
inventory throughout the chain via improved information flow aimed at improved
customer service, higher product variety, and lower costs and used the term "Networked
Inventory Management” for the inventory aspect of
SCM
 Issuing A Demand Forecast:
it is impossible for the company to base the materials planning on incoming orders. A
demand forecast is necessary. The demand forecast gives the expected product quantity
ordered.

At Alkaram studios, under the supply chain depts. several sub depts. are working
 Ware House Management:-
Ware house management is responsible for overseeing and controlling of the ordering,
storage and use of components that will use in the production as well as the overseeing and
controlling of quantities of finished products for sale of every season. Company prefer to use
the FIFO (first in first out) for the issuance of the inventory to different units and also to use
the raw material before any damage.
 Retail & Distribution:
Alkaram Textiles focuses on satisfying each customer via ease of access and the widest
ranges. Alkaram Textiles distribution channels are:-
 Alkaram Textiles fabric is distributed throughout Pakistan via a distribution network
of independent retail outlets and fabric stores.

Manufacturer
Outlets and fabric stores
Customer

 Distribution- A vast network of dealers, whole sellers, and retailers, our products
reach more than 200 outlets nationwide.
 For local Sale
Manufacturer
Wholesalers
Retailer
Customer

Alkaram Textiles Studio is a retail chain that specializes in providing classy attire for men and
women, from local to international styles of clothing
Process flow diagram of alkaram textile.

Arrival of raw material in

warehouse (raw cotton,
nylon,polyster,silk)

Manufacturing plant

spinning

weaving

Yarn dyeing

Wet processing
/finishing

Cutting and
stitching

warehouse Alkaram customers

studios

Distributor
retailors

customers
Alkaram values the customers:
alkaram has a very welltrained staff in every store that not only behaves in a very humble manne
r with all the customers but also helps them in picking up things. According to customers, alkara
m has a very good staff that deals with customer in a humble manner. They even give advice to c
ustomers if they ask for onealKharam staff clearly stands out if we compare to other brands like J
unaid Jamshed. Junaid Jamshed is a brand that offers clothing for men and women both the only
have male staff which creates problem for women sometimes. According to consumer perception
that it is very important for every clothing brand to have women staff because the large numbers 
of buyers are women.
alkaram not only through its quality and design they have created a big place for it in the market 
but
throgh it service it has made a special place in the minds of the consumers. They have carved the
ir own niche by serving customers in an efficient manner.
Question no. 2: Discuss various USPs and DSPs in the company you selected fro Question
Number. 01
Answer:
Unique Selling Points Of alkaram(USP’s):
 Online store
 Summer sales or summer arrivals
 Winter sales and winter arrivals
 Spring sale / arrivals
 Cultural/traditional wares
 Hand-woven
 Own online store
 Diverse product range
 Return and exchange facilities

Distinctive Selling Point Of alkaram (DSP’s):

 In house manufacturing
 In house retail outlets
 Reward Points
The Reward Points Program allows you to earn points for certain actions you take on the
site. Points are awarded based on making purchases and customer actions such as
submitting reviews.
 Benefits of Reward Points for Registered Customers
Once you register you will be able to earn and accrue reward points, which are then
redeemable at time of purchase towards the cost of your order. Rewards are an added
 bonus to your shopping experience on the site and just one of the ways we thank you for
being a loyal customer.
 Earning Reward Points
Rewards can currently be earned for the following actions:
 Making purchases — every time you make a purchase you earn points based on the
price of products purchased and these points are added to your Reward Points balance.
 Registering on the site.
 Subscribing to a newsletter for the first time.
 Sending Invitations — Earn points by inviting your friends to join the site.
 Converting Invitations to Customer — Earn points for every invitation you send out
which leads to your friends registering on the site.
 Converting Invitations to Order — Earn points for every invitation you send out which
leads to a sale.
 Review Submission — Earn points for submitting product reviews.
 New Tag Submission — Earn points for adding tags to products.
 Reward Points Exchange Rates
The value of reward points is determined by an exchange rate of both currency spent on
products to points, and an exchange rate of points earned to currency for spending on
future purchases.
 Redeeming Reward Points
You can redeem your reward points at checkout. If you have accumulated enough points
to redeem them you will have the option of using points as one of the payment methods.
The option to use reward points, as well as your balance and the monetary equivalent this
balance, will be shown to you in the Payment Method area of the checkout. Redeemable
reward points can be used in conjunction with other payment methods such as credit
cards, gift cards and more.

 Promise Of Quality:

alkaram promises to the customers to provide best quality fabric according to the need of
customers.
Question no. 3: Discuss the significance of studying SCM as an elective in your professional
life. (Hint: Like your thoughts with the industry of profession you belong
Answer:
 Being a chemical engineer Supply chain is one of the key factors that can be optimized to
reduce costs. Supply chain within the chemical industry involves transportation of
hazardous and non-hazardous chemicals and hence good knowledge of these will be
crucial
 Chemical engineer with supply chain management can deal better with the suppliers and
customers in chemical industries.
 Chemical engineers with SCM are often preferred in chemical manufacturing industries.
  As far as the importance of supply chain is concerned, you can see that the industry in
general (not just chemical, O&G, etc) is becoming more and more focused on inventory
management, etc and hence the field of supply chain has seen a tremendous growth in the
recent past and it is predicted that this trend will persist.
 Being a chemical engineer I can switch from blue collar to white collar job very easily
with the help of supply chain management.

Question Number 4: Bullwhip effect is the undesirable although most of the times FMCG
products are influenced by that. Although please provide one example and elaborate it properly
for any product which was influenced by undesirable outcome in the form of bullwhip effect.
Although please indicate example from any company or brand from Pakistan
Answer:
The bullwhip effect on the supply chain occurs when changes in consumer demand causes the
companies in a supply chain to order more goods to meet the new demand. The bullwhip effect
usually flows up the supply chain, starting with the retailer, wholesaler, distributor, manufacturer
and then the raw materials supplier. This effect can be observed through most supply chains
across several industries; it occurs because the demand for goods is based on demand forecasts
from companies, rather than actual consumer demand.
In Dawn Bread Company due to inaccuracy in understanding the customer requirement too much
bread had been produced due to which it become difficult to store them as the bread products are
more prone to spoilage due to their high moisture, This happened because the supply chain do
not take correct measure to calculate the amount needed by customers due to which they bear
great loss by this incident.
Question Number 5: Please elaborate that how supply chain might improves osrt and quality.
Quote example of the company where you or your parents are working.
Answer:
The pioneer objective of every oil and gas company is to achieve optimum exploration,
production and efficient processing. Supply Chain is proven to be of an importance as one of the
major operations in the Oil and Gas industry. It gets more and more crucial for oil and gas
companies to manage and oversee their supply chain activities in the most effective manner in
order to reduce the cost as well as to enhance and guarantee efficient operations in every stream
of oil and gas.
Improving supply chain operations for the capital intensive oil and gas industry requires explicit
consideration for trade-offs and risks. An effective value chain helps in mitigating the risk,
managing the warehouse inventory strategy, monitoring the logistics and transportation,
controlling the supply and demand, and ensuring the best procurement strategy by creating short
and long term supply chain strategies.
With global operations and transactions on the rise, procurement and supply chain professionals
are grappling with the realization of the need to upgrade the infrastructure to handle the level of
demand and urgency. Strategies need to be put in place to assess how to assure the delivery and
transportation of equipment on time and to avoid being an additional task that requires huge
expenditure and cause delays on projects.
Due to high risk handling of product and raw material it is important to keep everything on time
as far as quality is concerned. The supply chain department ensures every facility like
transportation scheduling of product and raw material to the tank farm on time to keep the
quality according to the standards . a little mistake in oil and gas industry can leads to huge
damage to the organization