muhammad hasan

8/14/2019 Muhammad Hasan

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1.1 INTRODUCTION.

B.B.A. (Hons), department of Accounting in the final examination introduced

internship program under the supervision of respectable teachers. And in thisresearch the selected organization was knitwear Ltd. Located at Pathantoli,Godgonail, Narayangonj, for me and the selected research subject wasmerchandising of the company. So I am paying special attention on merchandisingof the company.

At last, the main goal of the research was to analyze the following subjects:

The system of merchandising of Four knitwear Ltd.

Inefficiency or weakness of merchandising (if any).

Skills and necessary recommendation for achieving organizational goal.

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1.2 STATEMENT OF THE STUDY

The study will disclose present scenario of merchandising system and Practices at

Four knitwear Ltd.

The topic merchandising of four knitwear Ltd. gave me an opportunity to havean exposure to the working environment and on the job experience inmerchandising of Four knitwear Ltd.

So, I selected this study.

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1.3 OBJECTIVES OF THE STUDY :

The development, expansion, proper communication, labor- management relation,

etc. depends partly on merchandising of a company. So it is essential to rapiddevelopment of merchandising of a company especially in Textile Company.Textile is the most important area of earning foreign currency. The followings arethe main objectives of the present study:

To achieve practical idea about the company.

To study the merchandising of Four knitwear Ltd.

To find out some problems and limitations of merchandising of Four knitwear Ltd.

To present theoretical aspects of merchandising.

To compare practical merchandising system and with theoretical approach.

.To study about the merchandising policy of Four Knitwear ltd.

To suggest some possible measures to over come the problems.

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1.4 RATIONALITY OF THE RESEARCH

It appears that merchandising is the most important and essential part of textile .But unfortunately in Bangladesh, merchandising planning and controlling isreported to be unsound in case of private sector industrial undertaking. It indicatesthat merchandising planning and controlling is extremely poor in all private sectorslike four knitwear Ltd. In Bangladesh which in has adversely affected quality of the individual units. So far our knowledge goes; there is no other study on thesubject. The rationality of merchandising system is stated bellow:

To know properly about merchandising of Four knitwear ltd.For properly is essential.

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1.5 LIMITATIONS OF THE RESEARCH:

Actually, I have not faced any kind of mentionable problem in my research at Four

knitwear Ltd. Several levels of officers, employees helped me in severalconditions. Though, I have faced a few problems, which I should mention todepend on the research. The followings are some problem:

1. The officers of several departments failed to give me enough time for their business.

2. .Usually Company is not willing to provide their actual data of financialstatement because of their security.

3. Personal barriers like inability to understand some official terms; officedecorum etc. creates a few problems to me.

4. for newly entrance in this sector

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The scientific method, methodologies, model building and cost benefit measuresof value of information can create a good research.

2.1 DESCRIPTION OF THE RESEARCH DESIGN

Research Design

A research design is the determination and statement of the general researchapproach or strategy adopted for the particular project.

MeaningA research design is purely and simply the framework or plan for a study the

guides, the collection and analysis of the data. It is a blue print that is followed incompleting a study.

A central part of research activity is to develop an effective research strategy asdesign. This will detail the suitable method of investigation.

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2.2 SOURCES OF DATA

Collection of facts (raw facts) is known as data. There are two types of data areavailable based on source. These are:

1. Primary Sources of Data.2. Secondary Sources of Data.

PRIMARY DATA

The data collected for a purpose or when the researcher investigates a particular problem at hand is known as primary data.

Sources of primary data:

Primary data for this study collected through direct observation and personal

interview with questionnaire.

SECONDARY DATA

When an investigator uses data, which have already been collected by others for another purpose, such data is called secondary data. This type of data is primarydata for the agency that collected them for the first time, and become secondarydata for someone else who uses these data for his own purpose.

Sources of Secondary Data:

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The major data have been used in this study are basically are of primary data.Secondary data for this study was collected from the organization and severalreports.

2.3 DATA COLLECTION INSTRUMENTS

Direct observation and personal interview with questionnaire is the maininstrument to collect the data.

Both primary and secondary data have been used for the purpose of the study. The primary data have been collected on the basis of prepared questionnaire.

Some secondary data and information have also been collected from theorganization and several reports.

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2.4 METHODOLOGICAL ASSUMPTION

There is no project, which is free from assumptions. For every research someassumptions will have to be made before starting a project. The assumptions aremade about the study with respect to the organization prevailing concepts and

practices in the present environment.

In some cases assumptions will be correct which lead to the achievements of goal.But in certain other cases it may be limited by many some situations, thus notobtaining the objectives.

1. It has been assumed that direct observation and personal interview withquestionnaire would be the easy way for data collection on Four Knitwear Ltd.merchandising Management.

2. It has been assumed that the research methodology, which has been adopted for the study, is appropriate.

3. It has also been assumed that the respondents have been given the proper (correct and genuine) information.

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3.1 CONCEPT OF MERCHANDISING

In retail commerce, visual display merchandising means maximizing merchandisesales using product design, selection. Packing, pricing and display that stimulatesconsumers to spend more .This includes disciplines in pricing and discounting,

physical presentation of products and displays, and the decisions about which products should be presented to which customers at what time.

This annual cycle of merchandising differs between countries and within them, particularly relating to cultural customs like holidays, and seasonal issues likeclimate and local sporting and recreation.

In marketing, one of the definitions of merchandising is the practice in which the brand or image from one product or service is used to sell another trade marked brand names, logos, or character images are licensed to manufacturers of productssuch as toys or clothing, which then make items in or emblazoned with the imageof the licensed, hoping they will sell better than the same item in no such image.for the owners of the intellectual property in question , merchandising is a very

popular source of revenue, due to the low cost of letting a third party manufacturethe merchandise, while the IP owners simply sit back and collect the merchandisefees.

.

3.2 NATURE OF MERCHANDISE:

.

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3.3 PURPOSE OF MERCHANDISING

3.4 MERCHANDISING MANAGEMENT :

Merchandising management constitutes the most significant part of textilecompanies. A company starts their activities by starting the activities of amerchandiser. When a company receives an email from buyer, then the activitiesof a merchandiser start and a merchandiser always look after all activities from

production to sell.

1. Receive email of the buyer or buying house

2. Determine the actual price of the product3. send sample of the product4. Ensure a good quality of product

3.5 NEED TO MERCHANDISER

Merchandising and display are frivolous extra expenses for the small business owner who is just starting up. Theimplication was that expenses such as marketing, rent,inventory, utilities, staffing, etc. are 'serious' expenses, whilemerchandising and display are 'frills'.

I couldn't disagree more. Merchandising and display are animportant part of the marketing plan, and should have areasonable budget allocated - even for a retailer operating ona shoestring.

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In today's competitive retail environment a retailer cannotafford to consider merchandising as a 'frill'. Everyone iscompeting for the customers' dollar. There are more choicesout there for consumers than ever before .

3.6 OBJECTIVES OF MERCHANDISING :

Efficient Management of merchandising should ultimately result in the

maximization of sales of products. In order to minimize costStated differently that the objectives of merchandising management consist of twocounter-balancing parts: -

To maintain merchandising system for efficient and smooth production andsales operations.To maintain a minimum cost to maximize profitability.

These two conflicting objectives of merchandising management can also beexpressed in terms of cost and benefits associated with inventory. That the industryshould minimize cost of product for increasing more sales and more profit.

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3.7 PROCEDURE OF MERCHANDISING SYSTEM:1. Introducing: A merchandiser activities started by introducing with the

buyers. Introducing may occur by two ways 1. Buyer to seller 2.Buyer to buying house and buying house to seller. Generally theycommunicate with them by email and telephone or mobile.

2. Enquiry: At the time of introducing the buyer send their requirements, which include which types products, he needs. Theyalso provide sample size, sample photo, style etc. for an example isgiven below:

Sample: Sampling: After draw a cache a sample is prepared for the buyers and sends to the buyers. Sampling may be in two ways. 1. Sampling after confirmation price. 2. Sampling before confirmation price. For sampling amerchandiser need Fabrics, yarn, level, etc. For proper sampling a merchandiser

need follow some processes that are given below:

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A. Lab: It is an important part of sampling. If buyer wants color size product then he need to send them for proper coloring. After that labtest is send to the buyer for approve. For an example Letter that issend to lab is given below:

Date:

ToMr. BabulKnit Concern Ltd.

Sub: Lab Dip ProgrammedBuyer Name: Info-united

Art:-Zob-3Fabrics- 65%Cotton, 35%Polyester, S/J 180 GSM

SL # Color Name Pantone/Shade Fabrics Remarks01 Orange 158 C

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B. Dying: After the buyer approves lab test, and then sample isSent for dyeing.

C. Print: If there is any need of print, then it is sent for print.

D. Sewing: In swing section the finish fabrics are sewing.

Date:

ToJ.N. AccessoriesAttention: Mr. Sharma

FromFour Knit Wear Ltd.

Sub: Work order for sewing Thread.

Buyer: Info unitedOrder no: 02Order Qty: 1000 Pcs

Price- 30tk for color cone, 28tk for White cone.

SL. No. Color Qty Quality Swatch Remarks01 Orange 56 Cone 50/2

Sewingthread

Note- Should be good Engiam, Mom, Silicon

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Thanks & B/Rgds

D. Iron: In iron section products are ironing for better finishing.

3. Pricing : It is the most important factor for a merchandiser. Amerchandiser is the person who fix or determining the price of the

product. Deals will be done or not is totally depend on the price of the

product.

4. Cache Art ward : According to the requirements of the buyers, acache is drawn before make a sample for the buyers.

5. Order collect : If the buyers are satisfied to see the sample of the

product. Then he goes into productions.6.

3.8 COST OF PRODUCT :

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In case of merchandising, costing is most important. Because buyer deals withcompany on the basis of cost. If a buyer chooses the price of the product then hedeals the company.

Raw material cost1. Machine cost: Such types of cost are not done continuously but

maintenances cost is done regularly.

Labor cost: This cost occurs due to shortage of inventory. Due to stock outscustomers may be lost, goodwill of the firm may be hampered, as aresult, sales may be decreased and firms can face losses. It is a veryarduous task to determine such type of cost.

2. Management cost: Management cost means cost of officemaintenance.

3. Fabrics cost : It is the main raw materials of Four knit wear Ltd. SoFour knit wear Ltd. collect it from the suppliers.

FABRIC BOOKING SHEET: Confirmation date:1.2.10Buyer:INFOUNITED INFOUNITED VSJob No. : INFOUNITED Order quantity: 1000 Pcs.Style/order no.: zob no-02 Average cons/doz: 4.016 dzItem: mens polo short with short Zipper l/c statusCutting Target ; 5%Packing instruction

Parameter of Fabric QualityShrinkage 3-4% shade

Matching2-3%

final GSM onGarments

180 Wash fastnessat 40 c

4-5

Final GSM onfinish Fabric

175-180 Wet rubbingfastness

4-5

Type of yarn 24,S, CVC Dry rubbingfastness

4-5

Description of Fabric

65% cotton,25% polyester

Sportily of fabric

3%(max)

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S/J (doubleDyeing)

Source of hadeMatch

To be avoided

4. Accessories cost: A textile company needs various types of Accessories . Such as Sewing Accessories :

A. Sewing threadB. Care LabelC. Main labelD. Size labelE. Ham labelF. NeedleG. Marker Chalk H. PencilI. Rips tapeJ. Security tapeK. Twill tapeL. Zipper M. Button

Finishing Accessories :A. Hang tagB. Lock pinC. Poly

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D. Gum tapeE. scoots tapeF. Cut tonG. Cut ton sticker H. poly sticker

I. Cut tonJ. AICA AIBONK. ChemicalL. Thinner M. Measurement tape

N. Cutter O. Hanger P. ElasticQ. Marker pen

Cutting Accessories:A. KnifeB. GSM BoardC. Sun BladeD. GSM BladeE. GSMF. Size sticker G. Number Sticker H. PenI. Sapner

J. Eraser K. Sesser L. Inches tape Wash room accessories :

A. G fluxB. HPC. Talcum powder D. MACE. DD Plux

F. G Flux +cG.For buying Accessories Company have to give an order to buyingAccessories. An example of Accessories purchase order is given below:

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Date:

Attention_ Mr. KamrulTEX PointDhaka.

Subject: Accessories Booking for Citroens.

Article No: B0002735Order no: 109545

Buyer

style No

Item Size & Quantity Total

Remark sS M L XL XX

L3XL

4XL

ClassMark

Citroen

MainLabel

2000

2120

Carelabel

2000

2120

Sizelabel

105

315

525

525 315 158 158 2101

PolySticker CartonSticker

3 9 14 14 8 4 4 52

Cotton:Level: there are various types of level, such as fashion, main, side,

care, security etc.Zipper: It is a elements of actual product .So finish the product properly

we need a good quality Zipper. We collect this zipper from another company or agent or suppliers. We have to booking for this zipper. We

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are booking it by mail. For an example of booking for zipper are given below:

[email protected]

Cc: Mazed, Adroit LinkersBcc: Rusel [email protected]

Dear Mr. KhalilGood day, we have a order. Please see the information of Zipper.

A. Size-CMB. Zipper No- 3C. Zipper Quality-nylon Zipper D. Quantity- 1070 Pieces.

Please arrange 10 Pieces of zipper For P.P. Sample in urgent basis within 17/01/10. Collect the zipper color Swatch & Zipper quality fromAdroit linkers ASAP.

WBR MAMUN/ SHOHEL

Note- Price confirm by Mr. Mazed $.60 per doz.

If the booking is accepted, they will give us a confirmation letter. That isgiven below:

To

Four knit wear Ltd.

Dear Mamun/SohelMany thanks for new Booking.

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mailto:[email protected]:[email protected]:[email protected]:[email protected]


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B. RGSKhalil

Folder:Striker:Embroidery:aplic:Print:Eye late:

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:

er ---

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4.1 INTRODUCTION OF FOUR KNITWEAR LTD.

The FOUR KNITWEAR Ltd. is one of the qualities Textile Company inBangladesh located at Pathantoli, Godnail, Narayangonj. It came into being in

2006 at cost of Tk.30 million and launched production in early 2007.FOUR KNITWEAR Ltd. was incorporated in Bangladesh as a private limitedcompany by four partners, in 2006 and production started at 2007.By dint of the stewardship, sincere intention to win the hearts and minds of the

populace, taking the right strategy with quality and price, four knitwear productsachieved on upsurge in consumer demand within a short span of time. Thecompany, as a result, expanded by adding Euro based most sophisticatedmachinery. The total cost of the project now stands at Tk.30 million. FOUR KNITWEAR Ltd occupies a huge position in the textile world of Bangladesh andits heart and mind-pacifying fragrance has spread over the foreign territories as

well. Now the project is fulfilling the long cherished desire of the people of our country by supplying international quality garments and textile products within thecompetitive range of price.

Their international standard production unit is equipped with modern qualitycontrol procedure and microbiological lab with latest technology and a group of top professionals. All of the Garments are marketed under the brand name of Four knitwear. Each stage of production undergoes rigorous testing and quality control

process. The finished products are again tested to ensure the desired standard of quality before placing products in the market. The raw materials and active

ingredients of products of Four knitwear Ltd. are imported from reputedmanufactures of Malaysia, Indonesia, Italy, France, Germany, Japan, Singapore,England, Switzerland and USA.

Quality comes first keeping this principle in mind; it aims at producing guaranteedinternational quality garments for quality conscious people of home and abroad.

4.2 THE PROFILE OF Four knitwear LTD.

Corporate Headquarters: Pathantoli, Godnail, Narayangonj.

Factory: . Pathantoli, Godnail, Narayangonj.

Year of Establishment: 2006.

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Commercial production: 2007.

Status: Private Limited Company.

Business Lines: Manufacturing and Exporting Ladies and Gents T-

Shirt and polo shirtDepots: .

Export Outlets: Germany, France, Turkey. South Africa, Canada

Authorized Capital in Taka :30,000,000.00 .

Paid-up Capital in Taka: :20,000,000.00

Number of partners: :two

Stock Exchange Listing: : No

4.3 OBJECTIVES OF FOUR KNITWAER LTD.To manufactures and sell high quality clothes products to the people of all agegroup within affordable price. No compromise with Quality is the key policy of the Top Management. They believe that, they are reasonable and accountable to allconcerned with whom they deal; namely: their employees, their businessassociates, their consumers and their buyers.

3.4 PRODUCTS OF FOUR KNITWAER LIMITED.

1. Ladies T- Shirt

2. Gents T -Shirt3. Polo shirt4. Child shorts pant5. Ladies hooded jacket

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4.5 MACRO ENVIRONMENT SITUATION OF THE COMPANY:To develop a well relevant and rational Merchandising strategy a merchandisemanager has to analysis the macro environmental forces may be a major variablefor marketing activity. Remaining the rapid changing global picture Four knitwear Ltd. must monitor six major forces such as:

Demographic Economic Natural

Technological Political/legal Cultural etc.

In the aspect of Four knitwear Ltd. the main macro environment forces are to bediscussed as bellow.

4.5.1 Demographic Environment:Demography is the study of human population in terms of soiree, density, location,

age sex, race, occupation and other information. The demography environment ismajor interest to marketers because it involves people and people make up themarkets.

4.5.2 Economic Environment:The economic environment consists of factors that effect available buyer relationand world economic situation.

Total buying situation depends on current economic position of the world and prices of product and credit policy.

The economic environment of Four knitwear Ltd. is better than Other.TheCompany is accepting the challenge posed by a changing world economy use of the opportunities.

4.5.3 Natural Environment:The natural environment involves natural resources that are needed as input use bymarketers of which are effected by marketing Four knitwear Ltd. use of various

types of chemical and raw materials which has natural impact.

4.5.4 Technological Environment:

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Technology is the most significant factor in the Four Knitwear Ltd. The Four knitwear Ltd. is the most modern textile Company in the Asia pacific region. Thetextile company use of the most advanced and high tech equipment from worldsleading manufactures. Keya Cosmetics Ltd. has used very latest and computerizedmodern technology. Technological environment support other machine of this

company are-

The company has a completely self sufficient infrastructure with thecomplete power steam refrigeration, compressed air and water requirements for operation generated in house.

Chemical and water waste is cleaned in a modern effluent treatment plant complying with the most stringent international standards.

4.5.5 Political and legal Environment:Merchandising division is strongly affected by the development of political andlegal environment. The environment is composed of laws, governments agenciesand pressure groups that influence and limit various organizational and individuals.

4.5.6 Cultural Environment:Cultural environment is made up of institutions and other forces that affectedsocietys basic value, perceptions, preference and behavior.Cultural factors are important for four Knitwear Ltd. products because the culturalfactors effect on textile goods.

4.6 SWOT ANALYSIS:The swot analysis having identified the companys internal strength and weaknessas well as external opportunities and threats. We need to consider by previousmarketing and other related analysis an overall picture has revealed of Four Knitwear Ltd. It can develop new function business of corporate strategies toaccomplish this change. A SWOT analysis is shown in the below:

4.6.1 Strength of the company:Strength is the power of a company by using it a company may achieve thecompetitive advantage Four Knitwear Ltd. is a well reputed company in thetextile industries of the country. It is an enormous activity in the textile industry.

Here the existing strength of the company is mentioned as below:Huge capital involvement.

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A large amount of Assets.A well known reputed brand name.Good quality of productWell environmentManagement competence.Sound marketing skills.Good material management system.Availability of efficient and qualified human resources world latest.Appropriate organizational style.Appropriate control system.Good financial management.It has in-house power generation capacity is 12 megawatts.Roads leading to the complex have been built by are maintained by

Four Knitwear Ltd.

Tube wells ensure an abundant flow of water.

Supervisors and foreign technicians live on-site to provide 24 hour coverage.

4.6.2 Weakness of the company:Weakness is the internal and existing limitation of a company for which it isunable to be many competitive advantages. Some weaknesses of the Four knitwear Ltd. are

Lack of proper promotional program.Top management always pressure on lower management.Too much labor turnover rate.Depends on fully foreign order.Developing people skill assessing process requirement text time.Integration of section output & input still need further co-ordination

among the section.4.6.3 Opportunity of the company:

An inventorying opportunity is an area of seller head in which a company can

perform profitable. The opportunities identified for the Four Knitwear Ltd. are asfollows:Company can expand its product line by introducing differentiation or

introducing new product.

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The good will and demand of these kinds of products are increasingdata by day especially in the European market.

Greater possibility to product diversification with quality.Supervisor and foreign technician live on site to provide 24-hour

coverage.4.6.4 Threats of the company:Threat is an external obstacle or a barrier for which a company cant achieve its

predetermined goals. The major threats of this company are as follows:It is mainly depend on bank loan,. Money supply cant be provided by

bank and Govt. subsidy may be withdrawal in and time.Govt. has given G.S.P (Generalized system of performance) facilities.

But these facilities will continue only to 30 th June 2005.Political unrest or instability is the threat of this company. Because of

Hartal and political violence. Production is hampered and it cannotsupply the product at the right time.

Increasing foreign companys domination.And most important threat war to one country to others.

Various Departments of Four Knit Wear LTD: 1. Merchandising Department2. Accounts Department3. Commercial Department4. Human Resource Department5. Production Department:

Under production department there are various sections that are given below:

A. Knitting and dyeing sectionB. Cutting sectionC. Sewing sectionD. Wash roomE. Iron sectionF. Finishing sectionG. Accessories room

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4.7 SCHEDULE OF FIXED ASSETS OF FOUR KNITWEAR LTD. (ASON 30.06.2009.

Particulars Cost (Taka.)

01.Land 4,447,000.0002.Building03.Plant and Machinery 6,324,715.00+3,569,777.00(new)04.Renovation of Factory 35,037.0005.Fire Extinguisher 132,858.0006.Installation and Erecting 1,176,353.0007.Office Building 1,217,772.0008.Office Equipment 830,907.00

09.Furniture & Fixture 1,447,720.0010.Vehicles11.Fire Fighting Equip.Total

Source: Annual Report of FOUR KNITWEAR Ltd. (2009)

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4.8 FACILITIES F OR STAFFS AND EMPLOYEES FROM FOUR KNITWEAR LTD .

FOUR KNITWEAR Ltd. is one of the profitable companies in Bangladesh. In

view of acute un-employment situation of the country Four knitwear Ltd. givefollowing benefits to all level of staffs and employees every year:Appoint young, energetic and fresh individual :

Four knitwear Ltd. had taken bold decision to appoint young, energetic and freshindividual to solve un- employment problem from this poor country.

Overtime facilities:In this organization the employees work 6 days in a week. Work starts from 8 amto 5 pm. The work is performed at one shift. For that there is a scope to work after 5 pm to 8 pm. In this over time period employees get double wage. It is a legalsource for the employees to earn extra. There is also a break time for launch for

one hour.Festival bonus:

Every employee gets festival bonus in two Eid (salary or wage). Beside this theyalso get another bonus for extra production and part of profit.

Mental refreshment:Every year all level of employee gets the benefit of yearly picnic and sports andcultural program.

Training facilities:Four knitwear Ltd. Budgeted an amount for the skill development of their selectedstaffs and employees.

Transportation facilities:Every level of staffs and employees get transportation from their residence to their working area by bus and mini bus service of Four knitwear Ltd.

Residential facilities:The organization has residential facilities for employees in chief rent. Though there

prevails unhealthy atmospheres, but it is better than other ownership house.First aid facilities:

Four knitwear Ltd. has a primary medical for facing any kind of unfortunateaccident, which cost a part of budget every year.

Research and development facilities:There are a budget for research and development of Four knitwear Ltd. each year.So, any one can get an opportunity to research for his/her skill.

Prayer facility:

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At the time of prayer the Muslim employee have the place for prayer but othershave no facility.

5.2 MAJOR RAW MATERIALS OF FOUR KNITWEAR LTD.

ClothesCottonsLevelCartonsFoldersStrikersaplicEye late

5.3 LIST OF WORK-IN-PROCESS:1. Cutting: Fabrics are cutting in the cutting section according to the

size or design. In the time of cutting the fabrics Cutting master haveto check the following items.

A. Shrinkage

B. ShadeC.GSM and DIAD. Knitting FlatE. Dyeing Flat

2. Printing : After cutting the fabrics, different types of printing may beneeded. In Four Knit wear ltd. Printing is done by another party. So

for this it need to order for printing. An example of Printing order isgiven below:

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Date:......................

ToMr. Kashem / Sukar

Subject: Work order for printing.Buyer name: Class Mark

Art: CitroenPrice- $ 1.25 per Dozen

Order quantity- 2000 pcsSL # Color Name Quantity Print Quality Remarks01 Khaki 2000 As per

approvalSwatch

Note:Bill must be submitted only Order Quantity.

3. Sewing : In sewing section, cutting fabrics are sewing.

4. Iron : Products are iron because of more shinning the products. Thereis a steam boiler in the Four knit wear ltd. for iron the product.

5. Quality control : A quality controller Check produced products arequalified or not.

6. Finishing: It is all most the last step of production . A fair product isavailable here.

7. Hang tag: Fi nishing product are hanged here by the a hang tag for marketing properly.

8. Folding: It is

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9. Poly:

10.Cartons/Packing:

After poly the product , then it need to packing the product .

after packing the product . it need to attach a packing list, forexample of a packingn list is given below:

SHIPPING MARK:N DE CARTON/ BOX NUMBER CODE ARTICLE/ ITEMTALLE /SIZEQUANTITY

STYLE NO: B0002735( CITREON MENS T-SHIRT)ORDER NO: 109254ORD QTY- 3000 PCSCOLOR SIZE /ITEM CTN/PCS CTN

NOTTLOTN

TOTALPCS

S M L XL XXL 3XL 40 1-3 3 120KHAKI 40 40 4-16 13 520

40 40 17-44

28 1120

40 40 45-68

24 960

40 40 69-73

5 200

40 40 74 1 4020 20 40 75 1 40

10 20 3000PCSSUMMARY

SIZECOLOR S M L XL XXL 3XL 4XL TOTALKHAKI 130 550 1120 980 200 20 0 3000

PCS

TOTAL = 3000 PCS

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TOTAL CTNS= 75GROSS WEIGHT= 825NET WEIGHT= 712 KGSCTN MEAS= 60*40*20 CM11.Inspections:

12.Shipments;

5.4 LIST OF FINISHED STOCK

Gents t- ShirtLadies T-ShirtPolo T- ShirtOthers

5.5 Raw material COST OF FOUR KNITWEAR LTD.

As mentioned above an inventory is a stock of goods or materials used to facilitate production or to satisfy customer demands. Management for inventories is

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especially significant because of the importance of the acquisition manufacture andsale of products to the profitability of business enterprises. The value of theinventory usually has a material impact on the balance sheet. It also affects the costof goods sold and there fore the net income on the income statement. Four Knitwear Ltd. inventoried the following cost:

Ordering cost.Carrying cost.Holding cost.Storing cost.

5.6 INVENTORY COSTING METHOD OF Four Knitwear LTD.

The cost of inventories is assigned by using weighted average cost formula. Netrealizable value is determined after deducting the estimated cost of completion andcost to be incurred for affecting the sale from the sale price.

5.8 STOCK LEVEL MAINTAINED:

The major revenue-earning product is T-Shirt. The basic raw material for producing the product is Fabrics , which is 100% imported one.

Beside this Four knit Wear Ltd. have more products (mentioned above), which arealso made by some other important raw materials.

Four Knit Wear Ltd. knows how much stock will be needed to satisfy demandduring Lead-time. The possibility of stock-outs must be dealt with. In order tocompensate for uncertainties in either demand rate or lead-time, additional stock must be carried to reduce the risk of a stock-out during the lead-time interval.

So, it is clear that Four Knit Wear Ltd. maintained a stock level in order to meetthe market demand and customer satisfaction.

5.9 MATERIAL AQUISATION PROCEDURE:

Their international standard production unit is equipped with modern qualitycontrol procedure and microbiological lab with latest technology and a group of t

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The length of lead-time.

The extent of demand and lead time variability.

The degree of stock-out risk acceptable to management.

6.2 GRAPHICAL PRESENTATION OF PRODUCTION:

Figure-2

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160000000

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7.1 SOME PROBLEMS ARISES INVENTORY MANAGEMENT OF FOUR KNITWEAR LTD:

It appears that inventory is one of the key areas of working capital management.But unfortunately, in Bangladesh inventory planning and controlling is reported to

be unsound. We indicates that inventory planning and controlling is extremely

poor in the entire public sector Cosmetics units in Bangladesh, which in turns, hasadversely affected the liquidity as well as profitability of the individual units. In

practice, we see some problems when we investigate inventory managementsystem at Keya Cosmetics Ltd., which are stated bellows:

Lack of proper knowledge about inventory and management.Failed to follow inventory management technique like economic order quantity(EOQ). For that reason it failed sometime to determine economic order quantity.Inventory costing methods are not sound and the authority of Four Knitwear Ltd. fail to maintain First in first out (FIFO), Last out (LIFO) or other methods.Lack of proper comunication of different level of inventory.The management had little scope for control because of the dependence of export market and increasing cost of production due to uncontrollable situation.Inadequate training facilities for employees.In case of purchacing raw materials Four Knitwear Ltd. do not properly followacqusition procedure.Four Knitwear Ltd. do not maintain yearly inventory cost in proper way.Four Knitwear Ltd. do not calculate maximum or minimum level of inventory.

Four Knitwear Ltd. are not aware of determining optimum level of inventoryand safety stock. Which is very essential for sound inventory management.Four Knitwear Ltd. deprive of skillful permanent and forceable management.Four Knitwear Ltd. do not have any modernized equipment for inventorymanagement. For this it wastes time and money and also loses the quality.

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Lack of Scientific Management concept.Four Knitwear Ltd. has not yet being computerized in inventory management.

7.2 RECOMMENDATION:Textile sector plays a very important role to earn foreign exchange to our country.

A large amount of foreign money comes from the exporting of Garments.However a large number of workers maintain their live on this sector. Speciallythe women. So, government should take special nursing in textile sector. Some

points are given to overcome the problems of merchandising of this sector:

The authority should gather adequate knowledge about merchandising.They should follow appropriate merchandising technique.Adequate training facilities provided for personnel for development.

Should follow a specific inventory costing method, in the context of rising trend inraw materials price.

They should determine yearly inventory cost like ordering cost, carrying costacquisition cost separately.For purchasing raw materials, Four Knitwear Ltd. should follow acquisition

procedure strictly.Four Knitwear Ltd. should analyze the balance sheet through various ratios for determining efficiency, profit-earning capacity, financial solvency etc.Four Knitwear Ltd. should develop merchandising system and strictly .Theyshould determine optimum level of inventory.Sound communication should be established between managing directors to

merchandiser. Steps to be taken to increase fire service equipment are to faceany kind of accident.Cost control system must be implemented at every stage in the organization.Medical facilities should be improved.Effective personnel management should be set up.Proper steps should be taken to stop power failure.Various motivations will be provided to workers for sound production.Four Knitwear Ltd. should modernize their equipment for inventory.They should computerize their every level of inventory.

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7.3 CONCLUSION:

Todays organization demands that the Inventory management function deliver value-added services. This requires a sharp business focus from Inventory

management professionals and the delivery of high quality Inventory managementsystems that are integrated into the organizations strategy and operations.

Management of inventories is a big job and is a complex one. The result of thestudy showing that there is lot of room for Four Knitwear Ltd. to improve their inventory management have certain implications for the business community aswell as national economic planners. The study Inventory Management of FourKnitwear Ltd. revealed that Inventories are most valuable resources for the

progress of the organization. For the development of these valuable resources thereare many factors involved. Inventory Management plays an important role. To

increase the productivity of an organization effective, dynamic InventoryManagement procedure is essential. Preparation of future business managersshould provide for the development of managerial skills relating to inventoryfunction. Colleges and universities offering business administration curriculumwould do well to evaluate their courses as they relate to the findings of this study.

This pilot study indicates the potential utility that could be derived fromundertaking more comprehensive investigations covering only inventorymanagement of Four Knitwear Ltd. There are consequent developments of newer knowledge can definitely contribute to increase the efficiency of business

management and this, in turn, will increase the satisfaction of all interested parties,which will be the ultimate goal of business.

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muhammad hasan

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