The factors effecting inventory management system in FMCG( Fast Moving Consumer Goods) organization

Abstract

Supply chain management addresses the management of materials and information across the entire chain from suppliers to producers, distributors, retailers, and customers. In the past few decades, scholars gave ample attention about the impact of inventory on Supply Chain Management (SCM). Roughly speaking, research on supply chain management has been mainly focused on three major issues. One is the behavior of information flow; the second issue deals with inventory management; the third issue is orientated to planning and operations management. In this paper the second issue, namely inventory management will be discussed. The author will follow the phases of classifying inventory; identify what factors effect inventory on supply chain. In this paper, through interview and questionnaire a view on the overall inventory system of Transcom Baverages Ltd, Gazipur, Dhaka branch is obtained. Their ordering cost, public demand, EOQ and ROL are shown in this paper. In this case it is seen that there is a considerable amount of gap Between safety stock and ROL. This is one of the major issues of this inventory management system. Also some recommendations are given with respect to the factor that effects their inventory system.