This report is all about the summary and analysis that I get from Pakiza Technovation Limited during my internship time. Pakiza Technovation Limited (PTVL) is the latest concern of the renowned Pakiza Group, the standard of excellence in all its business sectors. With a mission to deliver excellence through innovation in designing solutions, implementing them in an innovative way using the right technologies, Pakiza Technovation Limited (PTVL) started its journey.
Pakiza Technovation Limited (PTVL) aims to be one of the recognized organizations for IT hardware solutions and software development in the country. To achieve this goal, they ensure that - hardware and IT solutions business, custom software delivery (Design, coding and testing) and follow-up customer service is an essential part of the quality process. Pakiza Technovation Limited (PTVL) products and services are- Hardware Solutions, Software Solutions, Data Center and Passive Infrastructure Solution, Managed Service, Security and Surveillance etc.
Initially, in the first chapter, I have discussed the Framework of the report - Background of the study, Importance of the report, Purpose of the report, Objective, Methodology, Sources (Primary Sources, Secondary Sources), Limitations. In the second chapter, I have discussed about Pakiza Technovation Limited- An overview of Pakiza Technovation Limited, Organization Chart, Company Vision and strategies, Vision, Code of Ethics, Corporate Responsibility Policy, SHEQ (Safety, Health, Environment and Quality), Products and services, Financial performance. In the fourth chapter it was discussed about Analysis of Inventory Management Practices: Application of EOQ Model- Inventory Purchase Plan, Inventory Suppliers and Terms of Conditions, Inventory Suppliers, Terms of Conditions, Inventory Business Process, Framework, Pakiza Technovation Limited method of inventory management - FIFO, what is FIFO.
Pakiza Technovation Limited's motivation to use FIFO, product description, Advantages Pakiza Technovation Limited derives from using FIFO, EOQ analysis, Reorder point and safety stock analysis, EOQ score evaluation, Inventory turnover ratio, Evaluation of safety stock result, Evaluation of inventory turnover ratio.
Framework of the report
- Background of the study
- Significance of the report
- Scope of the report
- Objective
- Methodology
- Sources
- Primary sources
- Secondary sources
- Limitations
To collect any data there are two types of sources, which are primary sources and secondary sources. All the information we get through observation, face to face talking with concerned person are called primary sources of data. All the information we get from online, newspaper, website, other person use data are called secondary sources of data.
To get Pakiza Technovation Limited (PTVL) all the information I observe, I talk face to face with different people, I read company report, company website, previous record and file, newspaper. Since it's a private company, I can't get a solid annual report because they don't produce an annual report. I used to work in the operations office, so I face problems in getting information and because I don't have a good relationship with everyone, because we can't communicate face to face often.
About Pakiza Technovation Limited
- An overview of Pakiza Technovation Limited
- Mission of Pakiza Technovation Limited (PTVL)
- Vision of Pakiza Technovation Limited (PTVL)
- Values of Pakiza Technovation Limited (PTVL)
- Organogram
- Code of ethics
- SHEQ (Safety, Health, Environment, and Quality)
- Safety
- Health
- Environment
- Quality
- Products & services
Pakiza Technovation Limited believes in delivering excellence through innovation that utilizes technology and ensures a high level of satisfaction to its customers, a policy of social responsibility. They take Taka 1,250/- per month from their employee, the rest of the payment is paid by Pakiza Technovation Limited. Pakiza Technovation Limited (PTVL) does not compromise on the quality of products and services for its customers.
Economic Order Quantity (EOQ) & Inventory Management
- Theoretical framework of inventory management
- Objective of inventory management
- Operating objective
- Why inventory management is important
- Purposes of inventory
- Movement Inventories
- Buffer inventory
- Anticipation inventories
- Control of materials
- Purchase control
- Warehouse control
- Storage control
- Associated risks and risk management
- Theft
- Inventory waste & damage
- Inventory loss
- Life cycle
- Economic order quantity (EOQ)
- The EOQ Inventory model
- Forecasting
- Reorder point and safety stock
A good inventory management can make your business shine and also a bad inventory management can also ruin your entire business. By providing the right goods at the right time, inventory management can improve customer satisfaction. Inventory management planning and control helps firm to maintain their cash flow. Employee will not be able to steal any goods because every information about stock is recorded.
Because proper inventory management firm can easily figure out reorder point at which point they need to reorder inventory to maintain proper inventory so that the firm can run with proper flow to maintain profit margin. As a result of inventory management firm can easily and effectively manage its goods ordering, inventory, storage, and use of inventory. Every firm that maintains a proper inventory management keeps or maintains a quantity of inventory to meet sudden demand, in case of any emergency, on any unexpected failure of supply chain failure.
For all these the firm focus on maintaining a certain amount of inventory for these reasons. And at the time of receiving the inventory they take the clearance, delivery, inspect the goods, do the stock charge and store the inventory, check the issue and come back if there is any kind of damage to the inventory or any other issue. Normally at the time of using inventory or at the time of import or delivery of inventory there are many chances of inventory loss and damage.
PTVL takes the initiative to control these inventory losses and damages by auditing and counting which employee has what and how much. If they have extra inventory and use without that inventory, they can work normally with PTVL size that extra inventory which helps them prevent inventory loss. For these risks Pakiza Technovation Limited (PTVL) controls inventory management to avoid these risks and predict the exact amount of inventory it needs to run its activity.
They predict based on historical data such as previously, what type of stock the seller is buying from him, what trends are happening in the market, what will be the changes in consumer taste, new technological changes, etc. Safety stock is an additional quantity of a product that is kept in a warehouse to prevent an out-of-stock situation. It is important for any business to have some safety stock on hand to avoid the risk of circumstances.
Reorder point = Daily usage rate*Lead time (in days) Or Reorder point = [Daily usage rate * Lead time (in days)] + safety stock. Safety stock = [maximum daily usage * maximum lead time] – [average daily usage * average lead time] = safety stock.
Analysis of Inventory Management Practices: Application of EOQ Model
- The purchasing plan of inventories
- Suppliers of inventories and terms of conditions
- Suppliers of inventories
- Terms of conditions
- Inventory business process
- Pakiza Technovation Limited inventory management method
- What is FIFO?
- The motivation of Pakiza Technovation Limited to use FIFO
- Advantages that Pakiza Technovation Limited get by using FIFO
- Inventory Turnover Ratio
- Evaluation of the inventory turnover ratio
- Reorder point and safety stock analysis
- Evaluation of the safety stock result
- EOQ analysis
- Evaluation of the EOQ result
Basically, in the inventory management process Pakiza Technovation Limited (PTVL) forecast and plan for the purchase of inventory. Pakiza Technovation Limited uses the FIFO method to manage its inventory instead of using the LIFO method. Using the FIFO method, Pakiza Technovation Limited can easily find out the cost of the products at the time of sale.
In the table we can see that in 2019 Pakiza Technovation Limited sold 306,961 units of various types of ICT goods and its approximate delivery time was 135 days from June to December. We can see the general information of Pakiza Technovation Limited and try to find out all the average sales per day. Inventory turnover helps Pakiza Technovation Limited (PTVL) to take various decisions, regarding the pricing of its goods, the way of marketing, purchasing and storage management.
With this report Pakiza Technovation Limited (PTVL) is able to know the performance of its business and with this they try to make the next future plan according to it. Pakiza Technovation Limited (PTVL) inventory turnover ratio was high which means PTVL is doing good business till now. Here we can see how initially Pakiza Technovation Limited (PTVL) holding period was excessive in 2019 but after that they are on the right track managing to sell its stocks on time and often.
Reorder point = (average sales per day * average delivery period) + Safety stock year Average delivery period Average per day sales Safety stock reorder point. Keeping these quantities of minimum stock in stock Pakiza Technovation Limited (PTVL) reorders the stock. Here in table no. 13 we can see safety stock information of Pakiza Technovation Limited (PTVL).
The table contains security days and average daily sales of Pakiza Technovation Limited (PTVL). Pakiza Technovation Limited (PTVL) security days is 7 and their average sales per day varies in different years. In the above table no-14: Economic order quantity, we can see Pakiza Technovation Limited (PTVL) annual demand, annual holding cost, annual order cost.
From this information we are able to know that Pakiza Technovation Limited (PTVL) economic order quantity or EOQ. Which helps Pakiza Technovation Limited (PTVL) to maximize its profit by minimizing its total product related costs.
Findings & Conclusion
Findings
Conclusions
Appendix
