JAIPURIA INSTITUTE OF

MANAGEMENT
(LUCKNOW)

Project Report On

“Study of Replenishment Procedure in

Big Bazaar”

Submitted By :

Ravi Pratap Singh

Management Trainee, Jaipuria Institute
Of Management, Lucknow

Jaipuria Institute Of Management, Lucknow Page 1

 ACKNOWLEDGEMENT

It gives me great privilege and honour to offer thanks to all

those who helped me in my project. I would like to extend my
sincere thanks and gratitude to my project guide Mr. Gaurav
Narang for acting as a mentor and as a catalyst during entire
duration of my project. I also thank him for providing
continuous cooperation support and expert guidance
throughout my project, whenever needed.

I also thank all the Department Managers for showing keen

interest in the study and for giving their valuable suggestions
from time to time, as and when required and also for rendering
all possible help during the time when the study was
conducted.

I express my cordial thanks and acknowledgements to all front

hand employees for taking out time from their busy schedule
and providing me with relevant information, which contributed
significantly in my project analysis and increased my
knowledge in a totally new sphere. It was great interacting with
the customers of various frequencies and learning from their
experiences.

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 PREFACE

In spite of the theoretical knowledge gained through classroom

study, a person is Incomplete if not subject to practical
exposure of real corporate world and may have to face hurdles,
which will be difficult to overcome without any first hand
experience of business.

In this context two months summer training has been design to

make the person aware of happening of the real business world
.The report, entitled “Study of replenishment Procedure in Big
Bazaar” has been done by me at Big Bazaar Shahdara, New
delhi.

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INDIAN RETAIL INDUSTRY

India is the 4th largest economy in the world in Purchasing

Power Parity (PPP) terms after USA, China and Japan. In 2003,
India became the second fastest growing economy in the world
with a growth rate of 8.2%.The economy is expected to grow at
7-8% per annum for the next 5 years. However the average
income of an Indian evaluated on the basis of GDP per capita is
$620 (Rs27900). On this measure India figures a lowly 127 in a
committee of 177 nations in the Human Development Report
(HDR) 2005 produced by United Nations Development Program
(UNDP).

On the other extreme, India has one of the highest savings rate
in the world with Rs 29 of every Rs 100 of its national income
being saved. These extremities leaves a lot of opportunity for
marketers, both Indian and international. One of the key growth
factors has been the shift to service sector which accounts for
50% of the total GDP. Led by services such as IT,
telecommunication, healthcare and retailing, the services
sector is likely to play an even more important role in the Indian
economy.

Retailing in India is one of the significant contributors to the

India economy and accounts for 35% of the GDP. India has a
large number of retail enterprises. With close to 12 million retail
outlets India has one of the highest retail densities in the world,
but only 4% being larger than 500 sq ft in size. In terms of the

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structure, the industry is fragmented and predominantly
consists of independent, owner-managed shops.

The retail businesses include a variety of traditional retail

formats, such as "kirana" stores which stock basic household
necessities (including food products), street markets-regular
markets held at fixed centre retailing food and general
merchandise items, street vendors-mobile retailers essentially
selling perishable food items-fruits, vegetables etc and small
non specialized retailers.

India has a large number of retail enterprises. With close to 12

million retail outlets India has one of the highest retail densities
in the world. In terms of the structure, the industry is
fragmented and predominantly consists of independent, owner-
managed shops.

Fragmented nature of Indian retail

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Migration from unorganized to organized retail has been visible
with economic development, in most economies.

FOREIGN BRANDS / RETAILERS PRESENT IN

INDIA

Consumerism and brand proliferation has been another enabler

for organized retailing in India. Most of the world’s leading
brands are now present in India. Some of the well-known names
that have set-up their operations in the country are:-

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Future Group

Future Group is India’s leading business group that caters to

the entire Indian consumption space. Led by Mr. Kishore Biyani,
the Future Group operates through six verticals: Retail, Capital,
Brands, Space, Media and Logistics : Future Retail
(encompassing all lines of retail business), Future Capital
(financial products and services), Future Brands (all brands
owned or managed by group companies), Future Space
(management of retail real estate), Future Logistics
(management of supply chain and distribution) and Future
Media (development and management of retail media.

Apart from Pantaloon Retail, the group’s presence in the retail

space is complemented by group companies, Indus League
Clothing, which owns leading apparel brands like Indigo Nation,
Scullers and Urban Yoga, and Galaxy Entertainment Limited
that operates Bowling Co, Sports Bar, F123 and Brew Bar.

The group’s joint venture partners include French retailer

ETAM group, US-based stationary products retailer, Staples and
UK-based Lee Cooper. Group company, Planet Retail, owns and
operates the franchisee of international brands like Marks &
Spencer, Next, Debenhams and Guess in India. The group’s
Indian joint venture partners include, Manipal Healthcare,
Talwalkar’s, Blue Foods and Liberty Shoes.
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Future Capital Holdings, the group’s financial arm, focusses on
asset management and consumer credit. It manages assets
worth over $1 billion that are being invested in developing
retail real estate and consumer-related brands and hotels. The
group has launched a consumer credit and financial
supermarket format, Future Money and soon plans to offer
insurance products through a joint venture with Italian
insurance major, Generali.

The group is currently developing over 50 malls and

consumption centers across the country and has formed a joint
venture company focusing on mall management with
Singapore-based CapitaLand, one of Asia’s largest property
companies.

The group’s flagship company, Pantaloon Retail (India) Limited

operates over 5 million square feet through 400 stores in 40
cities. Some of its leading retail formats include, Pantaloons,
Big Bazaar, Central, Food Bazaar, Home Town, EZone, Depot,
Health & Beauty Malls and online retail format,
futurebazaar.com.

Future Group companies include, Indus League Clothing, that

owns and retails brands like Indigo Nation and Scullers and
Galaxy Entertainment that manages Sports Bar, Brew Bar and
Bowling Co. Future Capital Holdings, the group’s financial arm,
focusses on asset management and consumer credit. It
manages assets worth over $1 billion that are being invested in
developing retail real estate and consumer-related brands and
hotels.

The group’s joint venture partners include Italian insurance

major, Generali, French retailer ETAM group, US-based
stationary products retailer, Staples and UK-based Lee Cooper
and India-based Talwalkar’s, Blue Foods and Liberty Shoes.

Future Group’s vision is to, “deliver Everything, Everywhere,

Everytime to Every Indian Consumer in the most profitable
manner.” The group considers ‘Indian-ness’ as a core value and
its corporate credo is - Rewrite rules, Retain values.

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“Future” – the word which signifies optimism, growth,
achievement, strength, beauty, rewards and perfection. Future
encourages us to explore areas yet unexplored, write rules yet
unwritten; create new opportunities and new successes. To
strive for a glorious future brings to us our strength, our ability
to learn, unlearn and re-learn, our ability to evolve.

We, in Future Group, will not wait for the Future to unfold itself
but create future scenarios in the consumer space and
facilitate consumption because consumption is development.
Thereby, we will effect socio-economic development for our
customers, employees, shareholders, associates and partners.
• Our customers will not just get what they need,
but also get them where, how and when they
need.
• We will not just post satisfactory results, we will
write success stories.
• We will not just operate efficiently in the Indian
economy, we will evolve it.
• We will not just spot trends, we will set trends
by marrying our understanding of the Indian
consumer to their needs of tomorrow.
It is this understanding that has helped us succeed. And it is
this that will help us succeed in the Future. We shall keep
relearning. And in this process, do just one thing.

“ Rewrite Rules. Retain Values.”

Group Vision

Future Group shall deliver Everything, Everywhere, Everytime for

Every Indian Consumer in the most profitable manner.

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Group Mission
• We share the vision and belief that our customers and
stakeholders shall be served only by creating and
executing future scenarios in the consumption space
leading to economic development.
• We will be the trendsetters in evolving delivery formats,
creating retail realty, making consumption affordable for all
customer segments – for classes and for masses.
• We shall infuse Indian brands with confidence and renewed
ambition.
• We shall be efficient, cost- conscious and committed to
quality in whatever we do.

• We shall ensure that our positive attitude, sincerity, humility

and united determination shall be the driving force to make
us successful.

Core Values
• Indianness: confidence in ourselves.
• Leadership: to be a leader, both in thought and business.
• Respect & Humility: to respect every individual and be humble
in our conduct.
• Introspection: leading to purposeful thinking.
• Openness: to be open and receptive to new ideas, knowledge
and information.
• Valuing and Nurturing Relationships: to build long term
relationships.
• Simplicity & Positivity: Simplicity and positivity in our thought,
business and action.
• Adaptability: to be flexible and adaptable, to meet challenges.

• Flow: to respect and understand the universal laws of nature.

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Major Milestones
1 Company incorporated as Manz Wear Private Limited.
987 Launch of Pantaloons trouser, India’s first formal
trouser brand.
1991 Launch of BARE, the Indian jeans brand.
1 Initial public offer (IPO) was made in the month of May.
992
1994 The Pantaloon Shoppe – exclusive menswear store in
franchisee format launched across the nation. The
company starts the distribution of branded garments
through multi-brand retail outlets across the nation.
1 John Miller – Formal shirt brand launched.
995
1997 Pantaloons – India’s family store launched in Kolkata.
2 Big Bazaar, ‘Is se sasta aur accha kahi nahin’ - India’s
001 first hypermarket chain launched.
2002 Food Bazaar, the supermarket chain is launched.
2 Central – ‘Shop, Eat, Celebrate In The Heart Of Our
004 City’ - India’s first seamless mall is launched in
Bangalore.
2005 Fashion Station - the popular fashion chain is launched

aLL – ‘a little larger’ - exclusive stores for plus-size

individuals is launched

2 Future Capital Holdings, the company’s financial arm

006 launches real estate funds Kshitij and Horizon and
private equity fund Indivision. Plans forays into
insurance and consumer credit.

Multiple retail formats including Collection i, Furniture

Bazaar, Shoe Factory, EZone, Depot and

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 futurebazaar.com are launched across the nation.

Group enters into joint venture agreements with ETAM

Group and Generali.

BOARD OF DIRECTORS

Mr. Kishore Biyani, Managing Director

Kishore Biyani is the Managing Director of Pantaloon Retail

(India) Limited and the Group Chief Executive Officer of Future
Group.

Mr. Gopikishan Biyani, Wholetime Director

Gopikishan Biyani, is a commerce graduate and has more

than twenty years of experience in the textile business.

Mr. Rakesh Biyani, Wholetime Director

Rakesh Biyani, is a commerce graduate and has been actively

involved in category management; retail stores operations, IT
and exports. He has been instrumental in the implementation
of the various new retail formats.

1. Mr. Sanjeev Agarwal, Operation and Chief Operating

Officer.
2. Mr. Shailesh Haribhakti, Independent Director.
3. Mr. S Doreswamy, Independent Director.
4. Dr. D O Koshy, Independent Director.
5. Ms. Anju Poddar, Independent Director.
6. Mr. Bala Deshpande, Independent Director.

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 7. Mr. Anil Harish, Independent Directior.

PANTALOON RETAIL (INDIA) LIMITED

(Incorporated in the Republic of India with limited liability under
the Companies Act, 1956)

One of India’s leading organized multi format retailers and are

pioneers in Indian hyper market business, promoted by Kishore
Biyani. Part of the Future Group. From our beginning in 1987,
we have today evolved as one of the leading retailer and are
among the pioneers in setting up a nation-wide chain of large
format stores in India. We believe that the various initiatives
taken by us have played a key role in enhancing the standards
of retail in the country. We are an entrepreneur driven,
professionally managed retailer focused on meeting the
customer requirements for a large component of their spend
across fashion, food, general merchandise, home in both value
and lifestyle segments. We have also entered into
partnerships/joint ventures to expand our offerings from home
to apparel to household products to durables etc. We believe
our focus on customers supported by systems and processes
and a committed work force are the key factors that have
contributed to our success and will help us scale up as we
embark on our strategic growth plan. We started our operations
with one store in Kolkata in 1996, occupying an area of 8000 sq
ft. Presently we operate 125 stores, (including franchisee stores
and factory outlets) in over 25 cities spread across the country
occupying an aggregate area of 3,165,498 sq ft (as on October
15, 2006).

We started our operations with a trouser brand, Pantaloon. In

our initial stages we had small format outlets branded
Pantaloon Shoppe, which were franchise operations. Realizing

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the problems associated with franchise model, we decided to
have our own retail outlets.

Pantaloons is our first organized departmental store format

targeting the Indian middle class and upper class customers
across age and gender. The focus is largely on apparels and
accessories and covers the entire family. We offer a wide
variety of product range including trousers, shirts, casual wear,
western and ethnic wear for women, children’s clothes,
accessories and jewellery. We provide a combination of private
label and third Party Label. We have introduced a unique
concept of ‘cellular zones’ within our stores that provides the
consumer with all the brands pertaining to a category,
showcased together.

For e.g., a consumer while shopping for ladies ethnic wear

would find all possible brands clustered together, making her
shopping experience easy and convenient.

Our business is identifiable under two major segments:

(i) Value retailing
(ii) Life Style retailing

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We believe that managing customer expectation by offering
them all the requirements for their entire family under one roof
is the key to being a successful retailer, and hence have built
our business model around ‘family focus’ rather than ‘individual
focus’. We believe addressing the family attracts more
customers into the store. Promotions and events are an integral
part of our service offering to our customer, which helps us
create a unique shopping experience.

ETHICAL VALUES
Indianness :

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The core value of company is INDIAN-NESS. The company is
developing an Indian model of retailing because India is a
unique country and Indian customers have a unique culture and
value system. That’s why the company is targeting the family
as the customer rather then the individual. It offers products of
Indian taste, a combination of own and shop-in-shop categories
and a mix of big retailer partnering with the small-time
shopkeepers.

Leadership:

The company aims to be a leader and not a follower. The

company has taken initiatives to achieve this leadership
position by launching multiple retail formats that target all
segments of society.

Respect:

The company respects the individual. For instance, employees

are considered as internal customers, suppliers/vendors are
treated as partners in progress. The company believes in long-
term value-driven customer relationship rather than one-off
deals.

Dedication:

The company is dedicated to customer satisfaction. This is why

it has a no-questions-asked exchange policy and offering
products which customers need. The company follows an

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inverse pyramid structure of organization where the Board of
Directors are at the bottom and the customer service executive
is on the top.

Self-Development:

The company is in the continuous process of self-development

through sincere and hard work towards understanding
customers, markets and products. The company has moved
over time from apparel manufacturing to distribution to
franchisee retailing to the departmental format retailing and to
the hypermarket format of retailing. As a result, the company is
always in a state of learning.

Introspection:

Introspection is the key corporate value. The company has

passed through a number of inflection points in its short life
span and emerged successful. The company’s ability to
introspect has helped it grow over time from the small to large
and multiple formats of retailing that target all the sections of
society.

Affliated Companies

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Home Solutions Retail (India) Limited

Home Solutions Retail (India) Limited (HSRIL) offers complete

retailing solutions for all products and services related to home
building and home improvement. The key product categories
are Consumer Durable & Electronics (CDE), Furniture, Home
furnishing & decor, Home improvement and Home services.
HSRIL operates retail format Collection-i, Furniture Bazaar,
Electronics Bazaar, Home Town and e-zone.

Future Brands Limited

Future Brands Limited (FBL) has been incorporated on

November, 2006 and is involved in the business of creating,
developing, managing, acquiring and dealing in consumer-
related brands and IPRs (Intellectual Property Rights).

Future Media (India) Limited

Future Media (India) Limited (FMIL) was incorporated as the

Group’s media venture, aimed at creation of media properties
in the ambience of consumption and thus offers active
engagement to brands and consumers. FMIL offers relevant
engagement through its media properties like Visual Spaces,
Print, Radio, Television and Activation.

Future Logistic Solutions Limited

Future Logistic Solutions Limited (FLSL) has been incorporated

as a separate entity and is involved in the business of providing
logistics, transportation and warehousing services for all group
companies and third-parties.

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Future Axiom Telecom Limited

Future Axiom Telecom Limited is a Joint Venture with Axiom

Telecom LLC, UAE. The Company has a 50% stake in Future
Axiom Telecom Limited (FATL) which is a joint venture
Company with Axiom Telecom LLC, UAE. The Company would
be engaged in sourcing and wholesale distribution of mobile
handsets, accessories and in setting up service centres for
mobile handsets in India.

Pantaloon Food Product (India) Limited

Pantaloon Food Product (India) Limited (PFPIL) was

incorporated with the object of sourcing and backward
integration of food business of the Company. PFPIL has sourcing
and distribution bases at all key cities across the country.

Future Knowledge Services Limited

Future Knowledge Services Limited (FKSL) was incorporated on

January, 2007 and is engaged in the business of business
process outsourcing and knowledge process outsourcing.

Future Capital Holdings Limited

Future Capital Holdings Limited (FCH) was formed to manage

the financial services business of Pantaloon Retail (India)
Limited and other group entities. FCH is one of the fastest
growing financial services company in India, with presence in
Asset Advisory, Retail Financial Services and Proprietary
Research. The company operates a consumer finance retail
format, Future Money and manages assets worth over US$ 1
Billion through Indivision, Kshitij, Horizon and Future Hospitality
Funds. FCH subsidiary companies include Kshitij Investment
Advisory Company Ltd., Ambit Investment Advisory Company
Ltd., and Indivision Investment Advisors Ltd.

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Future Generali India Insurance Company Limited

Future Generali India Insurance Company Limited (FGIICL) was

incorporated on October 30, 2006 to undertake and carry on
the business of general insurance. The approval for carrying on
General Insurance Business has been received from the
Insurance Regulatory and Development Authority of India
(IRDA) on September 4, 2007.

Future Generali India Life Insurance Company Limited

Future Generali India Life Insurance Company Limited

(FGILICL) was incorporated on October 30, 2006 to establish
and conduct the business of life insurance in India, which
comprises of whole life insurance, endowment insurance,
double benefit and multiple benefits insurance etc. The
approval for carrying on Life Insurance Business has been
received from the IRDA in September, 2007.

Futurebazaar India Limited

Futurebazaar India Limited (FBIL) is set up as the e-Retailing

arm of the Future Group for providing on-line shopping
experience. Futurebazaar.com was launched on January 2,
2007, and has emerged as one of the most popular online
shopping portals in India. It was awarded with the “Best Indian
Website” award, in the shopping category, by the PC World
Indian Website Awards.

Staples Future Office Products Private Limited

Staples Future Office Products Private Limited (SFOPPL) was

incorporated on January, 2007 and is involved in the business

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of dealing in all kinds of office supplies, office equipments and
products. SFOPPL is a joint venture between the Company and
Staples Asia Investment Limited (a subsidiary of Staples Inc
USA). The company’s first retail outlet opened in Bangalore in
December, 2007.

MODERN RETAIL FORMATS

FORMAT DEFINITION VALUE

POSITION
Departmental Multiple product categories, Service and
Stores usually lifestyle driven with choice
apparel/accessories
dominating
Supermarket/conve Food and household Convenience
nience stores products
Hypermarkets/disco Large stores in big box Price and
unt stores format,with volume based choice
discounted prices
Speciality Extensive range of products Service
stores/category under a single category
killer
Seamless mall Apparel, accessories, Convenience,
lifestyle products, service and
entertainment choice

About Big Bazaar Shahdara :

Big bazaar, shahdara is a biggest Big Bazaar in the north
zone.It established on 22 june,2008.

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Food Bazaar : All food items, pulses, grains, fresh fruits,
vegetables, Dry Fruits.
.
Depot : Book shop offering novels, cassettes & CDs,
stationeries, books.

One Mobile : A mobile shop offering latest and affordable

handsets.

Apparel : For Ladies, Mens, Kids for all season. Western,

ethnic, casuals & formals

GM-Home : Entire range of kitchen need, Utensils,

Plasticswear, Home-linen

GM-Fashion : Accessories, Luggage, Gift items

Furniture Bazaar: Offers an entire range of Home Furniture at

affordable pricing.

Electronic Bazaar : Offers the best deals in branded

electronic goods.

Replenishment procedure in Big Bazaar

Overview
Inventory Replenishment Planning uses historical demand data
to determine
inventory replenishment policies for single location or two-
echelon distribution systems.
In addition to the demand data, it uses the cost of
replenishment, the cost of

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holding inventory, the cost of backordering (stockouts), and
target service levels to drive the policy identification. These
inventory replenishment policies perform better than the
standard EOQ (economic order quantity) policies that do not
account for variation in customer demand and replenishment
order lead times.

Impact of Inventory
In most industries, inventory is the foundation of conducting
business. Consider the manufacturing industry, where it is
necessary to coordinate both inventory-producing and
inventory-consuming activities. There are inventories for
multiple processing stages at multiple locations in the course of
turning raw materials into components, producing spare parts,
and ultimately creating finished goods.
In the retail industry, companies maintain large volumes of
different items at various locations. They must monitor
quantities, estimate usage, and place orders for replenishment.
Slow-moving items are discontinued, while new items are
introduced.

Function of Inventory

Supply

• economies of scale (production and delivery)

• capacity limits (production and delivery)
• delays in replenishment (order lead time)

Demand

• steady or intermittent demand

• variations in demand over time (trend, seasonality)
• unpredictable demand variations (random)

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Each of these factors can contribute to uncertainty. When
dealing with uncertainty, the traditional objective of inventory
control models is to minimize expected costs.
Consider some of the costs associated with most inventory
control systems.

Inventory-Related Costs
• replenishment cost (or fixed ordering cost)
• cost of processing orders
• cost is independent of replenishment quantity
• inventory holding cost
• opportunity cost of capital invested in inventory
• warehousing cost
• handling and counting costs
• other costs such as insurance and taxes
• stockout cost
• cost of backordering
• penalty cost for lost sales

Now Big Bazaar is going to adopt Auto

Replenishment System (ARS)

Several technological developments were necessary to enable

the implementation of such sophisticated replenishment
systems:

• Electronic inventory systems

• Identification technologies (barcodes, scanners)
• Data warehousing capacities (for historical sales data)
• Electronic data interchange (EDI)
• IT computation power (for forecasts at SKU level)
• Enterprise Resource Planning (ERP) systems

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Automatic Replenishment Programmes (ARP) are a practical
implementation of the idea of pull-supply chains. In these
programmes, the vendor is responsible for the replenishing of
the retailer's stock. To be able to do this, the vendor receives
data such as inventory level information and POS data from the
retailer. Replenishment is then pulled by the actual sales; thus
no orders have to be actively placed by the retailer. The first
successful implementation of such a system was between Wal-
Mart and Procter & Gamble in the late 1980's

ARP systems will depend on three factors:

• Transaction-specific factors (factors influencing transaction

costs, such as the standardization level of the ARP)
• Strategic factors (the market and profit orientation of the
firm)
• Organizational factors (characteristic factors of the firm,
such as the firm size)

The replenishment of the shelves is one of the most time-

consuming store
operations found. A study on grocery retailer has calculated
that 47% of its internal logistics costs are caused by in-store
shelf replenishment. In comparison, the costs for the transport
of the goods to the store (and back in the case of returns)
represents only 14% of total costs. The replenishment effort is
influenced by the size of the shelf, the available space in the
backroom, the case pack size (CU/TU) and the store
replenishment frequency.

A Descriptive Model of Replenishment

Systems

The store is herein viewed as a material sink, i.e. the place

where the products are consumed.42 As stated before, material

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for the store can be either sourced from the retailer's DC or
directly from a supplier.
Obviously, supplier and retailer are only a small part of the
entire distribution network. The initial source would be the raw
material producer (e.g. a wheat supplier), the final sink would
be the consumer (in contrast to the shopper43). In terms of
information flows, stores and suppliers can be sinks and
sources at the same time. In some systems, for example, the
store sends an order to the supplier, the latter sends a dispatch
advice back with the expected delivery time and quantity.
The basic function of a replenishment system is to decide,
when to order which
amount . Characteristics of replenishment systems with make-
to-stock
policy (i.e. the product is already built when the order comes in)
can therefore be captured with four elements . To be able to
decide which quantity to
order, it is obviously necessary to know how many items are on
stock. This is called inventory visibility.

Forecasts in Automatic Replenishment

Systems
An example of a multidimensional forecast formula used in an
replenishment system
is provided . The model is as follows:

Sales = Baseline sales * Seasonal effects *

Merchandising effects

Shelf Life
Retailers are constantly aiming to offer products with longer
remaining shelf life, as consumers demand fresh products .
Therefore, for products with a very
short shelf life (e.g. fresh pasta), store managers seek to
reduce the amount of store inventory. It is clear that the smaller
the average inventory of any SKU (compared relatively to its
mean sales) the fresher the product will be due to a higher
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turnover. Therefore, it is reasonable to expect low inventory
levels for short-shelf-life products. This finding is supported by
physical audits such as that carried out.

Inventory Performance of ASR Systems

Two possible perspectives on how to measure inventory

performance used in this thesis are:

• Cost side: to reduce inventory costs, there should be as

low stock in the stores as possible, therefore, the aim is to
minimize the absolute inventory mean.
• Marketing side: there should be little variance between the
stock levels each day, as the customer expects full
shelves at any time. Consequently, the ordered quantity
should be equal to the demand. The result of such a
strategy is a constant inventory level. Effective
replenishment systems should minimize inventory
variance.

Cost-Benefit Analyses
The four retailers studied into detail have drawn a positive
conclusion of their ASR implementation. For the interviewees
the advantages of higher ASR systems exceed the possible
drawbacks. The reported benefits are:

• higher availability on the shelves,

• higher turnover,
• time savings due to automatic ordering,
• lower stock levels in the stores,
• smaller stores require lower delivery frequency,
• more stable demand at the distribution centres, and
• inventory and cost transparency along the retailer's supply
chain.

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Suggestions:

• Employee should have knowledge of IT and the system.

• All the managers need to train their subordinates.
• ARS is beneficial for any store any business so it is
necessary that stock management, shelf management
and warehouse management should be better.
• Logistic and supply chain which is major issue in Big
Bazaar should be improved .
• Forecasting should be done on the basis of past
experience and also with latest soft wares according to
season and festivals etc.

Bibliography:

www.google.com
Harvard Business Review
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