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STEPS FOR CONTROLLING INVENTORY

Big Bazaar maintains its inventory by either selling its overstock on discounts and when there

is shortage of stock it maintains a safety level for it.

Change of stock happens when:

• There is a replenishment

• When season changes

Overstock 

Thus, Big Bazaar sells its apparels at a certain discount when the season is off or when there

is a change in the demand particularly fashion among the consumers.

In that situation it tries to get away with the extra stock and bring in the one in demand.

n!er Stock 

Big Bazaar maintains a safety stock according to previous data available.

V"RI"#LES IN "N INVENTORY PRO#LE$

Big Bazaar uses the finished stock of goods as inventory for the sale purpose.

There are two var%a&'es to %nventor( that are:

ontrolled !ariable

"ncontrolled !ariable

Big Bazaar has both the controlled and the uncontrolled variable because Big Bazaar knows

the amount of #uantity which should be ac#uired by the company and in what fre#uency it

should be ac#uired.

$lso it has the uncontrolled variable because it has to incur the cost of holding the inventory

and the cost associated for holding it because of non%deterministic demands.

Lea! T%)e

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The time gap between the placement of the order and its delivery is known to the company

 because of its central distribution house.