This report mainly encounters with the various concept of inventory control and its management undertaken by an organisation with stress on inventory and its effective control.
It deals with the cost related with the inventory and its profile, Usage of probabilistic estimate of demand and overall role of the inventory control in a tea processing unit .
The product of the company is world famous for its high quality taste.
They offer state of the art infrastructure in the processing plant with a highly trained employee and efficient way if inventory control.
This form should be used to find out the superior form by removing the supply variability in quality,quanity or time of delivery.
Work-in process(WIP) inventory-This is an intermediary form of inventory when the raw materials undergone a change but not completed. The quantity discount model This is the most common form of the inventory control technique .
In this model daily production rate is determined on the basis of daily rate of demand.
It is useful when inventory build up is a continuous process over the time and assumption of traditional Economic Order conditions holds valid.
Secondly,the units are produced and sold simultaneously.
In the case of Assam Tea Corporation processing unit both these situations are prevalent.