INVENTORY MANAGEMENT IN ELECTRIC

LOCOSHED, KAZIPET”
Submitted to
Jawaharlal Nehru Technological University,
Hyderabad

in
Partial fulfilment for the award of degree of
MASTER OF BUSINESS ADMINISTRATION
Submitted by
M. REKHA
10C31E0030
Under the guidance of
MR. RAJ KUMAR

Department of Management Sciences

BALAJI INSTITUTE OF TECHNOLOGY& SCIENCES,
NARSAMPET WARANGAL – 506 331
[i]
K. Sharath Babu Balaji Institute of
B.Tech., MBA, M.Phil., NET, (Ph.D)
Technology & Science
Laknepally, Narsampet,
Head of the Department
Department of Management Sciences Warangal – 506 331.

Tel: 08718-232641, 230556

Fax: 08718-230521
[email protected]

CERTIFICATE

This is to certify that the project report entitled

INVENTORY MANAGEMENT IN ELECTRIC LOCOSHED KAZIPET was

carried out by Ms M REKHA, bearing H.T.No 10C31E0030 under my supervision.

She has completed her project work as per the rules prescribed and submitted to the

JNT University, Hyderabad in partial fulfillment for the award of degree of Master of

Business Administration. It is a bona fide work done by her and has not been

submitted elsewhere either in part or in full for any degree or diploma of any

university earlier.

Head of the Department

[ii]
B. RAJ KUMAR Balaji Institute of
MFA, M.Com, MBA, M.Phil., (Ph.D)
Assistant Professor
Technology & Science
Laknepally, Narsampet,
Department of Management Sciences
Warangal – 506 331.

Tel: 08718-232641, 230556

Fax: 08718-230521
[email protected]

CERTIFICATE

This is to certify that the project report entitled

INVENTORY MANAGEMENT IN ELECTRIC LOCOSHED KAZIPET was carried

out by Ms M REKHA, bearing H.T.No 10C31E0030 under my supervision. She has

completed his/her project work as per the rules prescribed and submitted to the JNT

University, Hyderabad in partial fulfilment for the award of degree of Master of

Business Administration. It is a bona fide work done by him/her and has not been

submitted elsewhere either in part or in full for any degree or diploma of any

university earlier.

Supervisor

[iii]
 DECLARATION

I M REKHA bearing H.T.No.10C31E0030 (2010-12), hereby declare that the

project report entitled ―INVENTORY MANAGEMENT IN ELECTRIC

LOCOSHED, KAZIPET‖ is submitted to, Jawaharlal Nehru Technological

University, Hyderabad in partial fulfillment for the award of degree of Master

of Business Administration and it is an original work undertaken by me and it

is not submitted to any other University or Institution for the award of any

degree/ diploma/certificate.

Place: Warangal

Date:

M REKHA

H.T.No 10C31E0030

[iv]
 ACKNOWLEDGEMENT

Firstly, I am ever so grateful to Almighty God for bestowing His amazing

grace upon me.

I deem it a privilege to owe a special acknowledgment to BALAJI

INSTITUTE OF TECHNOLOGY AND SCIENCES for giving me an opportunity to

carry out the project.

I am grateful to my internal project Guide professor Mr. RAJ KUMAR for

his valuable support and guidance from time to time in giving a final shape to the

project.

I am grateful to the management of ELECTRIC LOCO SHED, KAZIPET

and my external project guide Mr. PVSSS. APPALRAJU, for rendering me the

privilege of doing a project in their esteemed company.

Last but not least, also give my sincere thanks to all the people who directly or

indirectly have helped and encouraged me in finding the way collecting the requisite

information and completing the project effectively and timely.

M REKHA

[v]
 ABSTRACT

Every enterprise needs inventory for smooth running of its activities. It serves

as a link between production and distribution process. There is generally a time lag

between the recognition of a need and its fulfilment. The greater the time lag, the

higher the requirements for inventory. It also provides a cushion for future price

fluctuations.

In a complex industry like Indian Railways Electric Loco Shed it is carefully

studied as to the real performance and impact of inventory management in the Electric

Loco Shed and the effectiveness of the inventory utilized is learned by the researcher

because of its great significance in the research.

Every industry on an average spends 70% on raw materials i.e., inventory.

Therefore there is a need to know the raw material cost. Also, there is great

importance in understanding the inventory management system in Electric Loco Shed,

Kazipet.

This study helps a lot to various departments to take steps to control the

inventory process.

[vi]
 TABLE OF CONTENTS

Certificates……........................................................................................................i-iii

Student Declaration.................................................................................................iv

Acknowledgement....................................................................................................v

Abstract.....................................................................................................................vi

List of Tables................................................................................................ ix

List of Figures..............................................................................................x

1.0 Introduction........................................................................................................ 1-6

1.1. Inventory……............................................................................................... 2

1.2. Need and Importance of the Study............................................................... 3

1.3. Objectives of the Study................................................................................. 3

1.4. Scope……………….....................................................................................4

1.5. Research Methodology and Database.......................................................... 5

1.6. Limitations of the Study............................................................................... 6

1.7. Chapterisation............................................................................................... 6

2.0 Organisational Profile.................................................................................... 7-29

2.1. Indian Railways at a Glance......................................................................... 8

2.2. South Central Railways................................................................................ 9

2.3. Profile of Electric Loco Shed Kazipet.......................................................... 11

2.4. Development of Railways in India............................................................... 14

2.5. Train Management System........................................................................... 18

2.6. Classification of Locomotives...................................................................... 20

2.7. Electric Traction Voltages............................................................................ 22

[vii]
 2.8. History of Electrification.............................................................................. 22

2.9. Railway Zones............................................................................................ 24

2.10. Railway Gauges.......................................................................................... 25

2.11. Railway Museums....................................................................................... 28

3.0 Theoretical Framework of Inventory Management.................................... 30-48

3.1. Management of Inventory.............................................................................31

3.2. Definition of Inventory................................................................................. 32

3.3. Importance of Inventory Management......................................................... 32

3.4. Objectives of Inventory Management.......................................................... 32

3.5. What is Inventory Management................................................................... 33

3.6. Inventory Control..........................................................................................34

3.7. Need for Inventory........................................................................................ 36

3.8. Types of Stock.............................................................................................. 37

3.9. Valuation of Inventory.................................................................................. 39

3.10. Inventory Control Techniques.................................................................... 42

4.0 Data Analysis and Interpretation.................................................................. 49-65

5.0 Summary.......................................................................................................... 66-68

5.1. Findings and Conclusions............................................................................. 67

References................................................................................................................. 69

[viii]
 LIST OF TABLES

TABLE PAGE NO

1. Table – 1 14

2. Table – 2 14

3. Table – 3 19

4. Table – 4 25

5. Table – 5 46

6. Table – 6 51

7. Table – 7 51

8. Table – 8 53

9. Table – 9 54

10. Table – 10 60

[ix]
 LIST OF FIGURES

FIGURE PAGE NO

1. Figure – 1 12

2. Figure – 2 12

3. Figure – 3 13

4. Figure – 4 59

5. Figure – 5 64

[x]
 CHAPTER - I

INTRODUCTION

[1]
1.0 INTRODUCTION

1.1 INVENTORY

Inventory constitutes the most significant part of current assets of large

majority of companies in India. On an average, inventories are approximately 60% of

current assets in public limited companies in India. Inventory serves as a link between

production and distribution process. As firms maintain large size inventories, a

considerable amount of funds is required to be committed to them. A firm neglecting

the management of inventories will be jeopardizing it in long run profitability and

may fail ultimately. In environments where an organization suffers from poor cash

flow or lacks strong control over electronic information transfer among all

departments and all significant suppliers, lead times, and quality of materials received,

inventory plays important roles.

Inventory management has important financial implications. Inventory

financing can be either a line of credit or short-term loan made to a company so it can

purchase the inputs to make the product, or purchase the product itself for resale. The

financial manager has the responsibility to ensure that inventories are properly

monitored and controlled. He has to emphasize the financial point of view and

initiate programmers with the participation and involvement of others for effective

management of inventories. It is possible for companies to reduce their inventories to

a considerable degree by using simple inventory planning and technique which carries

a favourable impact on company‘s profitability.

Inventory therefore, is categorized into 3 categories:

1. Raw materials

2. Work-in-progress

3. Finished goods

[2]
1.2 NEED & IMPORTANCE OF THE STUDY:

The importance of the Inventory management is...

 Inventory Management System provides information to efficiently manage the

flow of materials effectively.

 The coordination of people and equipment helps in managing internal

operations.

 Inventory management provides information to managers who make more

accurate and timely decisions to manage their operations.

 Because of large size of inventories maintained by firms, considerable amount

of funds is required to be committed to them.

 It is therefore absolutely imperative to manage inventories effectively and

efficiently in order to avoid unnecessary investment.

 Inventory is maintained to take care of fluctuations demand and lead time.

 It is also maintained to take care of increasing price tendency of commodities

or rebate in bulk buying.

 Inventory Management System provides information to effectively manage the

flow of materials effectively with people and equipment.

 It also coordinates internal activities for enhanced customer communication.

1.3 OBJECTIVES:

 To understand the concept of Inventory Management

 To discuss pattern, levels, trends of inventories in Electric Loco shed, Kazipet

 To learn the inventory control techniques implemented in Electric loco shed

 To assess the performance of Inventory Management by selecting accounting

ratios

[3]
  To find out the continuous supply of raw materials which facilitate for

uninterrupted production.

 To learn the effectiveness of inventory management in the overall financial

management of Electric Loco Shed, Kazipet.

1.4 SCOPE:

There are two fundamental questions that must be answered in order to

manage the inventory of any physical item – when to order and how much to order.

When to order is determined by average and variation in demand and replenishment.

How much to order is determined by the order quantity. Inventory control is the

process of monitoring inventory status. Although the concept is simple, the process of

getting the right balance can be quite a complex and time consuming task without the

right technology.

In the present study an attempt has been made to learn the actual

implementation of Inventory management techniques in general and other aspects

such as the scope of inventory management and the effectiveness of inventory

management in particular.

Financial management projections are valid on cutting down production costs.

When inventory is seriously tracked down, the company will have a lot of scope for

development and they can prepare themselves for higher responsibilities.

A thorough analysis of the inventory will help the management to know the

short comings, if any. It also helps the company to learn whether the financial position

and capacity.

[4]
1.5 RESEARCH METHODOLOGY & DATABASE:

The research methodology is a systematic way to solve the problem and it is

an important component of the study without which researcher may not be able to

obtain the facts and figures from the employees.

1.5.1 SOURCE OF DATA:

The data used in study was collected from primary & secondary sources,

comparing annual reports & financial statements of the electric loco shed.

1.5.1.1 PRIMARY DATA:

 Primary data is collected from the original source of information. The primary

data will be collected through personal interviews with various stores

managers, office records in Electric Loco shed.

 Data related to the organization history is collected from the historical record

of organizations and Indian railway website.

 Information related to the inventory management, its terms, its techniques and

methods is collected from reference books, articles and Google search.

 Information related to inventory management in this organization regarding

the techniques implemented to maintain inventory is collected through store

cards and observation of the stores, the employees of store keepers and

discussion with the project guide and other records, and office files. Some of

the data has been collected through discussion with the second level managers.

1.5.1.2 SECONDARY DATA:

Secondary data will be collected from the sources like company annual

reports, search engines, websites, magazines and various text books, news papers,

research articles and other relevant sources.

[5]
1.5.2 PERIOD OF THE STUDY:

Since many years ELECTRIC LOCO SHED, KAZIPET has been following

the same inventory management techniques. As such, for the study of my project, five

years of data has been collected viz. 2007 through 2011.

1.6 LIMITATIONS OF THE STUDY:

 There may be approximation in calculating ratios and taking figures from the

annual reports.

 It is not always possible to make future estimation on the basis of the past as it

might not come true always.

 The study did not include all the methods of Inventory Management.

 The time period taken for the study is limited and hence it may not provide

comprehensive insights.

1.7 CHAPTERISATION:

1. Chapter 1: Introduction

2. Chapter 2: Organisation Profile

3. Chapter 3: Theoretical Framework of Inventory Management

4. Chapter 4: Data Analysis and Interpretation

5. Chapter 5: Summary

[6]
 CHAPTER-II

ORGANISATIONAL PROFILE

[7]
2.0 ORGANISATIONAL PROFILE

2.1 INDIAN RAILWAYS AT A GLANCE

There are people today in who have never travelled on railway but thanks to

the expansion of television network in the country that would have seen the railway

and a locomotive; The Indian railways with more than 14 lakhs employees are the

largest employees in the country.

Established in 1853 when the first train was flagged from Bombay to thane, a

distance of 34km, it has now grown to dizzy heights and is covering more than 62,

484 km. Across the country is the largest network in the world. The Indian railway

have a felt of 8682 diesel locomotives, 1702 electric locomotives and 729 electric

locomotives.

Richard Trevithick was first man to produce rail locomotives. The first was

completed in 1802, nothing of it is known now expect its existence. The first steam

locomotive to run on a public railway was manufactured in 1802. The very like of this

locomotive is preserved at a Darlington station, England. The era of steam locomotive

began in India on December 22, 1851 when a small steam locomotive named

―Thomson‖ started to haul some wagons containing earth during the construction of

slain aqueduct near Roorkee (U.R).

On Saturday April 16, 1853 the first Indian train (popularly called as

AagGadi) steamed off BoriBunder to Thane a distance of 34km. The train drawn by

three engines covered the 34km. Distance in 70 minutes from Bombay to Thaana. It

had 400 passengers are than 18 lakhs employees, are the largest employers in the

country. Indian railway is the largest in Asia, fourth in the world and also in signalling

and telecommunication (S&T) first in the Asia.

[8]
 The most widely used engine on Indian Railways before independence

was extensively used on RajputnaMalwa Railways which become the meter gauge

section of the Bombay and central Indian Railway. The first of these engines was built

by dubs and company Glasgow in 1875. From these engines were also manufactured

in India at the Ajmer railway works.

In the post-independence period, the first steam locomotive manufacturing

unit was set up at chittaranjanin 1950. Between 1950 and 1972 this unit manufactured

2351 steam locomotives. During this period the steam locomotive were being

replaced the world over by electrical and electric locos. In India too, manufacture of

electrical and electric locomotives had started. The stamp depicts 2-8-2 class WG.

The fastest train in the world is goods train and why because these

trains will have starting point to destination. Some of the major stations such as

junctions will be stopped for crew changes purpose.

WDM2 electrical - The most widely used electrical locomotive in India. It

hauls freight trains of 2250 tons and mail trains with 18 coaches. These engines haul

nearly 56 percent of the total freight traffic on the Indian Railway and important mail

and express trains. The electrical locomotive works at Varanasi has a capacity to

manufacture 120 such locomotives per year.

2.2 SOUTH CENTRAL RAILWAYS

The youngest of the nine zonal Railways in India, South central Railway was

born on 1966. In its forty - three year is committed service and path breaking

progress, South Central Railway has built a modern system of the mass transport,

fulfilled the aspiration of the passengers and made a mark for itself in Indian Railway.

Strategically positioned extending from the east coast to west coast in the southern at

[9]
Secunderabad, serves six major states - Andhra Pradesh, Karnataka, Maharashtra,

Goa, Madhya Pradesh and Tamilnadu.

From the day of steam hauled locomotives and wooden plank seats. South

Central Railway has come a long way into the era of high powered Diesel and Electric

locomotives, ultramodern microprocessor based signalling and train control system,

Global passengers reservation. Network, microprocessor based interactive voice

Response system (IVRS) for inquiries, aesthetically designed passenger coaches

incorporating latest features and super-fast Trains.

Today SCR is playing a vital role as a catalyst for agricultural and industrial

development in the southern peninsula by providing a customer friendly transport

network, even while performing greatly as a commercial enterprise. South Central

Railway (SCR) was formed in October 1966 raving out the divisions of Hubli and

Vijayawada from the southern Railway and the divisions of Sholapur and

Secunderabad from Central Railway Jurisdictional adjustments were October 1977,

merging Guntacal of the Southern Railway with South Central Railway and

transferring Sholapur division back to central Railway. Secunderabad division was

bifurcated in February 1978 into two divisions - Secunderabad & Hyderabad, to

facilitate effective operational & administrative control.

In just 38 years SCR has laid 322 route kms of now track & 1,220 route kms

of parallel track, converted 2439 route kms of track from meter gauge, and electrified

1557 route kms introduced 46 new empress trains including Rajadhani & Shatabdhi

trains.

Emerged as the third largest one of Indian Railways in terms of originating

freight traffic. Achieved threefold increase in passenger traffic from 50 million in

1966 to 495 million in 2003. Jump in freight movement from 9 million tons to 106

[10]
million tons & stupendous improvement in earnings from Rs.58.00 crores to Rs.21,

380 crores.

 Developed the five major stations Hyderabad, Tirupathi, Vijayawada, Bellary

& Nanded as model stations.

 Pioneered the concept of 24 coach express trains with a view to meet the

increase in demands of passenger traffic.

 Undertook special drives to preserve the environment by adoption the ―clean

& green‖ program of the government of A.P.

 First lift provided to the foot over bridge (FOB) is at Tirupathi and it is

successfully working to the passengers.

 First escalators provided at Vijayawada and it is successfully working to the

passengers.

2.3 PROFILE OF ELECTRIC LOCO SHED KAZIPET

2.3.1 INTRODUCTION:

Electrical Loco Shed, ELS KZJ is homing the ―working horse‖(WAG-7) of

Indian Railways in Secunderabad Division of South Central Railway is located in the

town of Kazipet which is 12 km north to Warangal Railway station. The Shed was

constructed in 2002 and was inaugurated on November.2004 to cater to the needs of

traffic requirement.

At present, Electric Loco Shed, Kazipet has a homing capacity of 113 electric

locos. The Shed is carrying out all the Inspection Schedules, unusual attentions and

AOH for all the 113 locomotives. Secondary Maintenance is carried out for two

[11]
MEMU rakes in the shed during night time. Apart from this Shed staffs are attending

online break downs in the section KI-BPQ, KZJ-BN.

2.3.2 ORGANIZATION STRUCTURE

1) GAZZETTED ORGANISATION:

Figure 1

SR DEE
(SANJEEVA RAO)

ADEE AMM
(K BHARATH KUMAR) (R SHANKARA RAO)

2) ORGANIZATION STRUCTURE:

Figure 2

It is line and function organization system. When junior administrative officer

assistance by senior scales, junior scales, senior subordinate official that man

[12]
management is more effective and is learnt that the industrial relation are excellent

having no strike calls.

2.3.3 AIM

Trouble free maintains of loco, which can achieve zero failure with optimum

of expenditure and utilization of man power. This clearly indicates job satisfaction

and place satisfaction for employees.

2.3.4 IMPORTANT EVENTS:

 Inspection Bays Inaugurated By GM/SC on 14/10/2004

 IA, IB Schedules Started on 14/10/2004

 Member Electrical Inspected the Shed on 25/11/2004

 IC Schedule Started on 09/03/2005

 AOH Started on 01/04/2007

 IOH started on 28/07/2009

2.3.5 WAG7 LOCO HOLDING

Figure 3

120
99 109 111 111 113 113
100 82 87
80
60
40
20 WAG-7
0

[13]
 Table 1

Date 01.01.06 01.07.06 01.06.07 10.12.08 23.12.09 15.11.10 09.08.11 18.07.12

Loco 82 87 99 109 111 111 113 113

Holding

2.3.6 CURRENT SHED ACTIVITY:

Table 2

S. No. Type of Schedule Periodicity Time taken for schedule

1 IA 60 days 4 hours

2 IB 120 days 4 hours

3 IC-1 180 days 12 hours

4 IC-2 360 days 16 hours

5 AOH 18 months 07 days

6 IOH 54 months 10 days

7 MEMU attentions Daily 8 hours

8 On line / Yard attentions Daily

9 Break down Maintenance As and when required

2.4 DEVELOPMENT OF RAILWAYS IN INDIA

The development of railways in India started on all sides after successful initial

projects in the west and the east. Indian Railways was under private owners who have

[14]
not endeavoured consolidated efforts to render quality service to the passengers. Later

it was centralised and undertook by central government.

2.4.1 IN THE WEST:

On 16th April, 1853 the first railway on Indian sub-continent ran over a stretch of 21

miles from Bombay to Thane. The idea of a railway to connect Bombay with Thane,

Kalyan and with the Thal and Bhore Ghats incline first occurred to Mr. George Clark,

the Chief Engineer of the Bombay Government, during a visit to Bhandup in

1843.The first Indian train steamed off from Bombay (Bori Bunder) to Thane on 16th.

April 1853, at 3:30 P.M. "amidst the loud applause of a vast multitude and to the

salute of 21 guns." The train consisting of 14 carriages was hauled by three

locomotives named Sultan, Sindh and Sahib with 400 VVIPs. The formal

inauguration ceremony was performed on 16th April 1853, when 14 railway carriages

carrying about 400 guests left Bori Bunder at 3.35 PM.

2.4.2 IN THE EAST:

The Survey from Calcutta to Delhi was carried out by Mr. Stephenson during

1845-46. The construction of railway line from Howrah to Raniganj was sanctioned

only after 3 years. But by the end of 1853 61 kms of line was ready up to Pandooah.

Two historical incidents denied EIR, the first position in history of railways in India...

The Locomotive Engine and the carriages for both the trains of Bombay and Howrah

were despatched from England almost at the same time, but the ship carrying the loco

for E.I.R. (HMS Goodwin) was misdirected to Australia and the other carrying the

carriages for Howrah sank at Sandheads. Otherwise Howrah would have had the

legacy of running the first train in India. The Locomotive Engine and the carriages for

both the trains of Bombay and Howrah were despatched from England almost at the

[15]
same time, but the ship carrying the loco for E.I.R. (HMS Goodwin) was misdirected

to Australia and carriages for Howrah sank at Sandheads. The other problem faced

was that the line was aligned through Chandernagore (Chandannagar) which was a

French territory at that time. The settlement of this dispute with French rulers of

Chandernagore also took considerable time. The Locomotive reached Calcutta via

Australia and a trial run was made on 28th. June 1854. The coaches for the first train

were however manufactured by two Calcutta based companies Steward & Company

and Seton & Company. Otherwise Howrah would have had the legacy of running the

first train in India.

The first passenger train steamed out of Howrah station destined for Hooghly,

a distance of 24 miles, on 15th August, 1854. Thus the first section of the East Indian

Railway was opened to public traffic, inaugurating the beginning of railway transport

on the Eastern side of the sub-continent.

From 15th August 1854, the company ran regular services, morning and

evening, between Howrah and Hugli with stops at Bally, Srerampore and

Chandannagar. The fare ranged from Rs.3 by first class to 7 annas by third class. The

main booking office was on the Calcutta bank, at the Armenian Ghat, and the fare

covered the ferry to the station. At the Howrah end, the station consisted of a tin shed

and a single line flanked by narrow platforms, somewhat to the south of the present

station building constructed between 1901 and 1906.

2.4.3 IN THE SOUTH:

In the South the first line was opened on 1st July, 1856 by the Madras Railway

Company. It ran between Veyasarpandy and Walajah Road (Arcot), a distance of 63

[16]
miles. The first line was opened on 1st July, 1856 by the Madras Railway Company.

It ran between Veyasarpandy and Walajah Road (Arcot), a distance of 63 miles.

2.4.4 IN THE NORTH:

In the North a length of 119 miles of line was laid from Allahabad to Kanpur

on 3rd March 1859. The first section from Hathras Road to Mathura Cantonment was

opened to traffic on 19th October, 1875.

2.4.5 THE FIRST LOCOMOTIVE BUILT IN INDIA:

The F-734 built in 1895 by the Ajmer workshop of the Rajputana Malwa

Railway. Earlier some locomotives were assembled using spares supplied with fully

assembled locomotives which were imported. This locomotive with outside

connecting and side rods was used on Rajputana Malwa & Bombay Baroda & Central

India Railway systems.

These were the small beginnings which is due course developed into a

network of railway lines all over the country. By 1880 the Indian Railway system had

a route mileage of about 9000 miles.

The railway construction in India took an abrupt boom and a large number of

companies started working. These companies had only one thing in their mind. To

earn enough money. They had no co-ordination in their working and time tables. The

British government was seriously thinking about this. Sir Thomas Robertson who was

appointed by His Majesty as Special Commissioner to report on future management

of railways submitted his report in 1903. As a result of his efforts the Railway Board

assumed office in 1905. Railway mileage now at about 24,750 miles in India, of

which 14,000 miles are BG, and most of the rest MG (with only a few hundred miles

of 2' and 2'6" gauge lines). Regrouping was first conceived in 1904, but materialised

after World War.

[17]
2.4.6 THREE TERRITORIAL DIVISIONS WERE FORMED.

1. Western Division consisting of: Great Indian Peninsula, Bombay Boroda

Central India (BBCI), North Western, Jodhpur, Bikaner together with branch

and feeder railways in their areas.

2. Eastern Division consisting of: EIR, Oudh & Rohilkund, Bengal & North

Western, Rohilkund & Kumaon, Assam Bengal, Bengal Nagpur(BNR), East

Bengal (EBR).

3. Southern Division consisting of: Madras Railway, Southern Marhatta, South

Indian, Nizam together with ports and local railways.

2.5 TRAIN MANAGEMENT SYSTEM:

Train Management System (TMS) is a system implemented by Western

Railway, and being implemented now by Central Railway, for integrated management

and monitoring of suburban train movements and signalling, as well as planning train

routes, diversions, and introduction or withdrawal of rakes in service. CR's TMS

covers the major section from CST Mumbai to Kalyan, with four additional minor

sections: Ambivli (Igatpuri side), Ambarnath (towards Pune beyond Kalyan),

Bhiwandi Road on Vasai side beyond Dombivli, and Dativli Chord Cabin beyond

Diva on Panvel side. Implementation is still in progress and is expected to be

completed by 2008 or so.

2.5.1 TRAIN IDENTIFICATION:

This information is based on WR practice today; CR's TMS will use a very

similar system for identifying each rake and its trips. Each rake has a unique rake unit

number assigned to it. This is entered at the TMS input unit of the driving cab of the

rake, and is broadcast from an antenna mounted on the driving cab. This allows the

position of every rake to be known to the TMS system. Every EMU is also assigned a

[18]
unique train number when it is in service. This number (usually one or two

alphanumeric characters, e.g., 'AR') is assigned (and entered manually into the TMS

system) when the rake leaves the car shed, and also noted at the end of the day when

the rake is stabled. Each EMU also gets a 1 to 4 digit trip number (e.g., '173') for each

trip it makes while it is in service during the day. The trip number directly

corresponds to each run of the EMU in the timetable. As the train passes various

signals and other locations with TMS transponders, the rake unit number is picked up

from the transmitting antenna on the driving cab; this is correlated with the train

number and then the trip number by the TMS computers and the appropriate status

updates are made for the train's position and movement at the TMS units used by

station staff or section / traction controllers, and also for updating the PA systems at

various passenger stations.

2.5.2 TOTAL TRACK LENGTH/GAUGE-WISE ROUTE KMS :

Table 3
Year Total Route Kms Running Tracks Kms Total Track Kms(*)

Electrified Total Electrified Total Electrified Total

1950-51 388 53,596 937 59,315 1,253 77,609

1960-61 748 56,247 1,752 63,602 2,259 83,706

1970-71 3,706 59,790 7,447 71,669 9,586 98,546

1980-81 5,345 61,240 10,474 75,860 13,448 104,480

1990-91 9,968 62,367 18,954 78,607 23,305 108,858

1998-99 13,765 62,809 25,773 81,512 34,110 108,413

1999-00 14,261 62,759 26,809 81,252 35,120 107,969

2000-01 14,856 63,028 27,937 81,865 36,950 108,706

2001-02 15,994 63,140 29,567 82,354 39,030 109,227

2002-03 16,272 63,122 29,974 82,492 39,358 109,221

[19]
2.5.3 STATION SCHEDULING

At each station, based on the train schedules, a platform and siding occupancy

chart is drawn up. This provides, for each day of the week, an indication of which

platforms and sidings are occupied by which trains at what times. Introducing a new

train at a station (originating, or passing through) involves finding an appropriate slot

in this chart.

The overall scheduling, traffic planning, and operational aspects of a division

are under the control of the Chief Operations Manager of a division who is ultimately

responsible for the performance of the division in terms of punctuality, efficiency, etc.

2.6 CLASSIFICATION OF LOCOMOTIVES:

Locos, except for older steam ones, have classification codes that identify

them. This code is of the form '[gauge][power][load][series][subtype][suffix]'

In this the first item, '[gauge]', is a single letter identifying the gauge the loco runs on:

W = Broad Gauge
Y = Meter Gauge
Z = Narrow Gauge (2' 6")
N = Narrow Gauge (2')

The second item, '[power]', is one or two letters identifying the power source:

D = Diesel
C = DC traction
A = AC traction
CA = Dual-power AC/DC traction
B = Battery electric(rare)
[20]
The third item, '[load]', is a single letter identifying the kind of load the loco is

normally used for:

M = Mixed Traffic
P = Passenger
G = Goods
S = Shunting
L = Light Duty (Light Passenger?) (no longer in use)
U = Multiple Unit (EMU / DEMU)
R = Railcar (see below)

2.6.1 MULTIPLE UNITS:

There are two senses of the phrase "multiple units" to be distinguished. Two or more

regular locomotives may be coupled together for greater hauling capacity. In such a

case the locos are said to be operating as multiple units or to be "MU'ed together" (US

terminology: "lash-up").

This is not to be confused with the terms electric multiple unit (EMU) or diesel

multiple unit (DMU) which refer to cars used for (mostly suburban) train services

which have multiple prime movers (either electric motors or diesel engines) for each

car. I.e., the same car that carries passengers also has the motive power, as opposed to

the normal situation where the passengers are in coaches that are not self-propelling

and a locomotive hauls the train.

[21]
2.7 ELECTRIC TRACTION VOLTAGES

Voltages used are 1.5kV DC and 25kV AC for mainline trains.

Calcutta had an overhead 3kV DC system until the '60s.

The 1.5kV DC overhead system (negative earth, positive catenary) is used around

Bombay (This includes Mumbai CST - Kalyan, Kalyan - Pune, Kalyan - Igatpuri,

Mumbai CST - Belapur - Panvel, and Churchgate - Virar). There are plans [2/04] to

change this to 25kV AC by 2010. In preparation for this, BHEL has been retrofitting

some Alstom EMUs with AC drives to allow them to operate with both DC and AC

traction as the system conversion proceeds (see the section on EMUs). Conversion to

25kV AC has already been done on the Titwala-Kasara section; next to be converted

are Khapoli-Vangani, Vangani-Thane, and Titwala-Thane. The Madras suburban

routes (Madras-Tambaram in the '60s, extended later to Villupuram) used to be 1.5kV

DC until about 1967, when it was converted to 25kV AC (all overhead catenary

supply). (This is where the MG DC locos were used, e.g., the YCG-1 series.)

2.8 HISTORY OF ELECTRIFICATION:

The first electric train ran between Bombay's Victoria Terminus and Kurla

along the Harbour Line of CR, on February 3, 1925, a distance of 9.5 miles. In 1926,

Thana and Mahim were connected. In 1927, electrification was complete up to

Kalyan. In 1928, Borivili in the north was connected (Colaba-Borivili of WR being

inaugurated on May 1). In 1929, Kalyan - Igatpuri section was commissioned. In

1930, the Kalyan - Poona tracks were opened to electric trains.

On November 15, 1931, electrification of the meter gauge track between

Madras Beach and Tambaram was inaugurated (1.5kV DC). After that the only

electrification project undertaken was Borivili - Virar, finished in 1936. For mainline

[22]
traffic, GIPR undertook electrification of the Karjat-Pune and Kasara-Igatpuri

sections because it was realized that the heavy traffic to and from Bombay would be

suitable for electric haulage.

India took the plunge from DC to AC electric traction in the mid-1950s, as

mentioned above. Since French developments led the field, the AC locomotives

supplied at first (from SNCF) followed that country's practice, whether built in India

or France. These were the eight-wheeled WAM-1 locomotives that are still in

operation in some places.

The first train to be hauled by an electric locomotive from Delhi Jn. was the

Assam Mail.

Bombay-Delhi (WR) route was fully electrified by Dec. 1987. The CR route

was fully electrified by June 1990, when the Bhusaval - Itarsi section was electrified.

The 2 * 25kV AC system (see below) began to be put in place in the 1990s; the first

regular service using this system was between Bina and Katni (CR) on January 16,

1995. This was later extended to Bishrampur.

[12/04] With the BG conversion between Tambaram and Madras Beach complete, the

only electrified MG line on IR is the Tambaram - Villupuram stretch. However, no

train uses electric traction (the YAM 1 locomotives used to service this section have

been dismantled). Madras Beach - Tambaram was originally on 1.5kV DC

electrification but was converted around 1968 to the 25kV AC system.

After a period of about 25 years of aggressive electrification, now [12/04] IR

has most of the busy routes of its network electrified (although not all), and this has

resulted in about 65% of the traffic being hauled by electric traction. Recently

[12/04], therefore, IR has decided to slow down the pace of electrification -- about

2600km of routes are scheduled to be electrified in the next 10 years, compared to

[23]
5100km in the past 10 years. The focus will be on consolidating electric traction for

the busiest sections; some of the sections that will be converted to electric traction in

the next few years are Pune-Guntakal, Bina-Kota, and many 'B' sections of NR.

2.9 RAILWAY ZONES:

2.9.1 THE NINE OLDER RAILWAY ZONES ARE:

Northern Railway (NR)

North Eastern Railway (NER)

Northeast Frontier Railway (NFR, sometimes NEFR)

Western Railway (WR)

Southern Railway (SR)

South Central Railway (SCR)

South Eastern Railway (SER)

Eastern Railway (ER)

Central Railway (CR)

2.9.2 THE SEVEN NEW ZONES ARE:

South Western Railway (SWR)

North Western Railway (NWR)

West Central Railway (WCR)

North Central Railway (NCR)

South East Central Railway (SECR)

East Coast Railway (ECoR)

East Central Railway (ECR)

[24]
2.9.3 DEEMED ZONES:

Kolkata Metro (given zonal status Dec. 29, 2010)

Konkan Railway (deemed a zone for administrative purposes)

2.9.4 RAILWAY ZONAL LENGTH IN KILOMETRES

Table 4

Railway Zone Total Kms. BG Kms. MG Kms. NG Kms.

Northern 11040 8920 2020 100

4600, 150
Western 10295 4455 890
BG/NG

South Central 7217 5955 1215 47

South Eastern 7420 6135 1280 40?

2125, 155
Southern 7040 4630 130
BG/MG

Central 7265 6240 1025 —

North Eastern 5143 2300 2820 23

Eastern 4320 4185 135 —

North East 2230, 131

3820 1370 80, 8 MG/NG
Frontier BG/MG

2.10 RAILWAY GUAGES:

2.10.1 BROAD GAUGE - 5'6" (1676MM)

This is now found all over the country, and all major passenger and freight routes are

now broad gauge. This is the widest gauge in regular use anywhere in the world. (In

the past, though, an 8' gauge was used in Oregon, USA, and a 7'¼" gauge was used

for the Great Western Railway in the UK.) Outside India, the 5'6" gauge is found in

Pakistan, a spur from Pakistan into Iran, Sri Lanka, Bangladesh, Argentina, Chile, and

the BART rapid transit system in the USA. The decision to use a gauge wider than the

one in use in Great Britain was made with an eye towards economies in freight

[25]
movement, and also to ensure stability in the face of Indian weather and the perceived

threat of cyclonic winds.

About 42,000 route km of IR's network are broad-gauge.

2.10.2 METER GAUGE - 1M

This is still found in a lot of places, despite the push to convert everything to

broad gauge. It is said that this gauge was chosen by Lord Mayo (then Viceroy of

India) based on calculations to allow 4 persons to sit comfortably abreast — it would

have been 3'3" except that there was then a push to move to the metric system and so

the gauge became 1m. The first MG line was built in 1872 from Delhi to Farukh

Nagar (??). Interestingly, the metric system was not after all adopted until nearly a

century later, so the gauge was the only thing in India that was 'metric' for a very long

time.

About 14,500 route km of IR's network is meter-gauge [2/09] (the figure was

about 17,000 route km in 2000). By 2014, MG route-kilometerage is expected to drop

to 5,000km or less. The MG network was especially dense in the west (around

Vadodara, and in Rajasthan), in the east / north-east (West Bengal, Assam) and,

before Independence, the areas in what is now Bangladesh), and in much of the south

of India. Until the late 1980s, the North-Eastern Railway had a completely MG

network. The MG networks of northern India (including the north-east via the Assam

Rail Link) and southern India (16,690 and 7940 route kms, respectively) remained

separate until 1960, when the completion of the Khandwa - Hingoli section connected

the two. This link went through Akot, Akola, and Basim, across the Tapti and Purna

rivers and had 2 tunnels and 50 major bridges, and a spectacular spiral. This made

possible the transit of freight from any MG station in India to any other (except, of

[26]
course, the Nilgiri line which was always an isolated MG section), which was

important even though MG's share of freight was never very large (about 12% before

the Unigauge project started). The last MG line to be built in India was probably the

Himmatnagar - Udaipur line.

2.10.3 NARROW GAUGE - 2'6" (762MM)

This gauge was adopted in various parts of the British Empire. There were

(still are) considerable networks of these, for example in Gujarat around Vadodara

(mostly from the old Baroda State Railway) and in MP (centred around Gondia on the

S.E.R.). (Gondia-Jabalpur Satpura NG railway lines were closed in 2003 and

converted to BG.) The most well-known line is probably the Kalka–Shimla route. The

rationale for the narrower gauges was economy in building the lines — they could be

laid much faster than broad gauge lines and in more difficult terrain. It was envisioned

that narrow gauge lines would act as feeder lines to the broad gauge and meter gauge

lines, but many became important railway routes in their own right.

2.10.4 NARROW GAUGE - 2' (610MM)

A few places in India have the even narrower 2–foot gauge: New Jalpaiguri-

Darjeeling, Neral Matheran, and the Gwalior branch lines, which include Gwalior -

Sheopur Kalan, Gwalior – Shivpuri, and Gwalior – Bhind. (The Gwalior lines in the

past also included the Ujjain–Agar line.) The Howrah-Amta and Howrah-Sheakhala

NG lines were shut down a while back, and are now being rebuilt as broad gauge.

The two narrow gauges together make up about 3700 route km of IR's network.

[27]
2.10.5 STANDARD GAUGE (4'8½" OR 1435MM)

This has been used in a few places in India. The Calcutta tram lines are

probably the most well-known and probably the only surviving example. Heavy rail

in this gauge was used during the construction of the Madras Harbour (3 standard

gauge locos were procured by the Madras Port Trust). Standard gauge was also used

for the original construction of the Bombay Docks (but this system, put in place in

1909, lasted only until 1954). Standard gauge was insisted upon by the contractors for

the Bombay Docks project (Messrs. Price, Willis, and Co.), for the transportation of

material from Elephanta Island and to the new dock works and basin dam. Eight

standard gauge locos were procured for this, four used in Bombay City and four on

Elephanta Island. Wagons included old North London Railway wagons

2.11 RAILWAY MUSEUMS:

2.11.1 NATIONAL RAILWAY MUSEUM:

The National Rail Museum (NRM) is located in New Delhi. NRM's website has a lot

of information on the exhibits, an on-line newsletter, etc.

In addition to the better known and popular outdoor exhibits of plinthed or working

locomotives and other rolling stock, and indoor exhibits of railway equipment, the

NRM has a lot of books, maps, and other publications related to the railways in its

library (access by permission; not open to the public). They have old timetables (all

back to 1970, sparser before that, including the first Trains At A Glance (1977);

annual reports for most of the 20th century, old issues of the Railway Gazette and

other foreign railway publications; annual issues of the History of Indian Railways

Constructed and In Progress up to 1964, and annual issues of History of Defunct

Railways up to 1966; and many official Survey of India maps and railway maps.

[28]
2.11.2 MYSORE RAIL MUSEUM

The Railway Museum at Mysore is located adjacent to the Mysore railway station, but

with the entrance on the other side (no direct way to reach it from the station). It is

open daily except on Mondays. Nominal entrance and camera fees are charged. They

have various locos preserved at the museum.

[29]
 CHAPTER III

THEORETICAL FRAMEWORK

OF

INVENTORY MANAGEMENT

[30]
3.0 THEORETICAL FRAMEWORK OF INVENTORY MANAGEMENT:

3.1 MANAGEMENT OF INVENTORY:

Inventory often constitute a major element of the total working capital and

hence it has been correctly observed, ―Good Inventory Management is Good

Financial Management‖. Inventory management covers a large number of issues

including fixation of minimum and maximum levels; determination the size of the

inventory to be carried; deciding about the issue price policy; setting up receipt and

inspection procedure; determining the economic order quantity; providing proper

storage facilities keeping check of obsolescence and setting up effective information

system with regard to the inventories, the stock items will be provided to the

consignee‘s through generating Annual Estimation Sheets(ANE), Advance Intimation

Sheet(AIS), however, management of inventories involves two basic problems.

 Maintaining a sufficiently large size of inventory for efficient and smooth

production and sales operations.

 Maintaining a minimum investment in inventories to minimize the direct

indirect costs associated with holding inventories to maximize the

profitability.

Inventories should neither be excessive nor inadequate. If inventories are kept

at a high level higher interest and storage costs would be incurred on the other hand, a

low level of inventories may result in frequent interruption in the production schedule

resulting in underutilization of capacity and lower sales. The objective of inventory

management is therefore to determine maintain the optimum level of investment in

inventories which help in achieving the required objectives.

[31]
3.2 DEFINITION OF INVENTORY:

The term inventory refers to the stock of the product a firm is offering for sale

the components that make up the product. The term inventory comprise of raw

material, work in process, finished goods, stores and spares and consumables.

Inventory represent significant portion of assets in the case of most of the

manufacturing firms and required substantial investment.

3.3 IMPORTANCE OF INVENTORY MANAGEMNT:

The importance of inventory management cannot be defined because

inventory are to manager as they directly show there impact on corporate profits. Any

changes in the level of inventory effects profits.

The cost of the corporation structure of the inventory depends upon the level

of inventory held by it. If inventories are held above required level the cost which

result from handling storage spoilage obsolesce are more if they are maintained at

optimum level.

Search extra cost reduced the profits of the corporation. This effect may cause

when it is under invested. If the maintained level of inventory falls shortage the

corporation has to produce at extra cost to continue its operation. In this situation it is

obvious that more cost may incur. So important is given to inventories so that the cost

will be minimum and profits will be maximum.

3.4 OBJECTIVES OF INVENTORY MANAGEMENT

 To provide a conceptual frame work theoretical perception about the inventory

management.

 To reduce the investment in inventories.

 To make sure that the materials are available for use in production and

produce services, as and when required.

[32]
  To ascertain that finished goods are available for delivery to customers to

fulfil orders.

 To maintain a large sized inventory for efficient and smooth production and

sales operation.

 To ensure continuous supply of material to facilitate uninterrupted production.

 To place an order at the right time with the right quality at the right price with

right quality.

 To maintain a minimum investment in inventories to maximize profitability

because idle blocking of funds earn nothing.

3.5 WHAT IS INVENTORY MANAGEMENT

Inventory management is the active control program which allows the

management of sales, purchases and payments.

Inventory management involves the ‗development and administration of

policies, systems, and procedures which will minimize total cost relative to inventory

decisions and functions such as customer service requirements, production

scheduling, purchasing and tariff.

Inventory management thus consists of deciding on the appropriate level of

inventory to hold. Too less or too much inventory is harmful for any concern because

it will increase the overall inventory cost.

Inventory management software helps to create invoices, purchase orders,

receiving lists, and payment receipts and can print bar code labels. An inventory

management software system configured to your warehouse, retail or product line will

help to create revenue for your company. The Inventory management will control

operating costs and provide better understanding. We are your source for inventory

management information, inventory management software and tools.

[33]
A complete Inventory Management Control system contains the following

components:

 Inventory Management Definition

 Inventory Management Purposes

 Definition and Objectives for Inventory Management

 Organizational Hierarchy of inventory Management

 Inventory Management Planning

 Inventory Management Controls for Inventory

 Determining Inventory Management Stock Levels

3.6 INVENTORY CONTROL:

Rigid control over materials are necessary not only to guard against theft, But

also minimize waste and measure from causes such as excessive inventories, over

issue, deterioration, spoilage and obsolescence. There are certain prerequisites to an

effective control system for materials.

 Material of the desired quantity will be available when needed.

 Materials will be purchased only when a need exists and in economical

qualities.

 Purchases of materials will be made at most favourable prices.

 Vouchers for the payments of materials purchased will be approved only if the

materials have been received good condition.

 Materials will be protected against loss by proper physical control.

 Issue of materials will be properly authorized and accounted for, and

 All materials, at all times, will be charged, as the responsibility of some

individual.

[34]
 The control of materials, as an element of cost of production, is illustrated

with reference to the purchase and issues procedures, inventory systems, and

inventory control techniques. The efficiency of inventory control agates the flexibility

of the firm. There are several tools of inventory control. Some of these are:

 The economic order quantity which enables determination of optimal size of

order to place on the basis of demand or usage of the inventory.

 The technique safety stocks to overcome problems of uncertainty

 The order point formula which tells us the optimal point at which to reorder a

particular item of inventory.

Together these tools provide the means for determining an optimal average

level of inventory for the firm. Ratio analysis has wider applications measure of

inventory control among most manufacturing firms.

Effective inventory management requires an effective control over inventories.

Inventory control refers to a system which ensures supply of required quantity and

quality of inventories.

A good inventory control system is one which avoids problems of stick-outs,

excessive inventory, and overstocking of inventory, ensures a continuous supply of

materials to production department facilitating un-interrupted production.

 Maintain sufficient stocks of finished goods for smooth sales operations.

 Maintains sufficient stocks of raw material in periods of short supply.

 Minimizes carrying costs and time, and

 Keeps investment in inventories at the optimum level.

[35]
3.7 NEED FOR INVENTORY

In a just-in-time manufacturing environment, inventory is considered waste. However,

in environments where an organization suffers from poor cash flow or lacks strong

control over (i) electronic information transfer among all departments and all

significant suppliers, (ii) lead times, and (iii) quality of materials received, inventory

plays important roles. Some of the more important reasons for holding inventory are:

a. Predictability:

In order to engage in capacity planning and production scheduling, you need

to control how much raw material, parts, and subassemblies you process at a given

time. Inventory buffers what you need from what you process.

b. Fluctuations in demand:

A supply of inventory on hand is protection: You don‘t always know how

much you are likely to need at any given time, but you still need to satisfy customer or

production demand on time. If you can see how customers are acting in the supply

chain, surprises in fluctuations in demand are held to a minimum.

c. Unreliability of supply:

Inventory protects you from unreliable suppliers or when an item is scarce and

it is difficult to ensure a steady supply. Whenever possible unreliable suppliers should

be rehabilitated through discussions or they should be replaced. Rehabilitation can be

accomplished through master purchase orders with timed product releases, price or

term penalties for non-performance, better verbal and electronic communications

between the parties, etc. This will result in a lowering of on-hand inventory needs.

[36]
 d. Price protection:

Buying quantities of inventory at appropriate times helps avoid the impact of

cost inflation. Note that contracting to assure a price does not require actually taking

delivery at the time of purchase. Many suppliers prefer to deliver periodically rather

than to ship an entire year‘s supply of a particular stock keeping unit ( SKU) at one

time.

e. Quantity discounts:

Often bulk discounts are available if you buy in large rather than in small quantities.

f. Lower ordering costs:

If you buy a larger quantity of an item less frequently, the ordering costs are

less than buying smaller quantities over and over again. In order to hold down

ordering costs and to lock in favourable pricing, many organizations issue blanket

purchase orders coupled with periodic release and receiving dates of the SKUs called

for.

3.8 TYPES OF STOCK

a. Basic Categories

i. Raw materials:

Raw materials inventory is made up of goods that will be used to produce

partial products or completed goods or finished products, e.g., nuts, bolts, flour, sugar.

ii. Finished product:

This is product ready for current customer sales. It can also be used to buffer

manufacturing from predictable or unpredictable market demand. In other words, a

manufacturing company can make up a supply of toys during the year for predictably

higher sales during the holiday season. It includes completed products waiting to be

sold, e.g., bar stools, bread, cookies.

[37]
 iii. Work-in-process (WIP):

Items are considered to be WIP during the time raw material is being

converted into partial product, subassemblies, and finished product. WIP should be

kept to a minimum. WIP occurs from such things as work delays, long movement

times between operations, and queuing bottlenecks.

b. Functional Categories:

i. Consumables:

Light bulbs, hand towels, computer and photocopying paper, brochures, tape,

envelopes, cleaning materials, lubricants, fertilizer, paint, dunnage, and so on are used

in many operations. These are treated like raw materials.

ii. Service, repair, replacement, and spare items (S&R Items):

These are after-market items used to ―keep things going.‖ As long as a

machine or device of some type is being used (in the market) and will need service

and repair in the future, it will never be obsolete. S&R Items should not be treated like

finished goods for purposes of forecasting the quantity level of your normal stock.

Quantity levels of S&R Items will be based on considerations such as preventive

maintenance schedules, predicted failure rates, and dates of various items of

equipment. For example, if an organization replaced its fluorescent tubes on an as

needed, on-failure basis, it would need a larger supply of these lights on hand at all

times. However, if the same company relamped all of its ballasts once per year, it

would buy a large quantity of tubes at one time and only keep a small supply on hand

on an ongoing basis. Since S&R Items are never ―obsolete‖ or ―dead‖ until the

equipment or device they are to be used for is no longer in service, these items should

not be included in calculating dead stock levels.

[38]
 iii. Buffer/safety inventory:

This type of inventory can serve various purposes, such as: —compensating

for demand and supply uncertainties. —holding it to ―decouple‖ and separate different

parts of your operation so that they can function independently from one another.

iv. Anticipation Stock:

This is inventory produced in anticipation of an upcoming season such as

fancy chocolates made up in advance of Mother‘s Day or Valentine‘s Day. Failure to

sell in the anticipated period could be disastrous because you may be left with

considerable amounts of stock past its perceived shelf life.

v. Transit Inventory:

This is inventory en route from one place to another. It could be argued that

product moving within a facility is transit inventory; however, the common meaning

of the concept concerns items moving within the distribution channel toward you and

also outside of your facility or en route from your facility to the customer.

3.9 VALUATION OF INVENTORY

Most inventories fit into raw materials, work-in-process and finished goods,

yet the amount of each category varies greatly depending on the specifics of industry

and business. The types of inventory found in distribution environments are

fundamentally different from those found in manufacturing environments.

Distribution businesses tend to carry mostly finished goods for resale while

manufacturing companies tend to have less finished goods and more raw materials

and work in progress. Given these differences, it is natural that the accounting choices

vary between distribution and manufacturing settings.

In order to assign a cost value to inventory, you must make some assumptions

about the inventory on hand. Under the general income tax laws, a company can only

[39]
make these assumptions once per fiscal year. Tax treatment is often an organization‘s

chief concern regarding inventory valuation.

Generally there are number of methods accepted to determining the cost of

inventories at close of the accounting period. The selection of a suitable method

assumes significance in view of the fact that it has a direct bearing on the cost of

goods sold and consequently on profit.

There are five common inventory valuation methods:

1. First-in, First-out (FIFO)

This method of inventory valuation assumes that the first goods purchased are

the first to be used or sold regardless of the actual timing of their use or sale. This

method is most closely tied to actual physical flow of goods in inventory.

2. Last-in, First-out (LIFO)

This method of inventory valuation assumes that the most recently

purchased/acquired goods are the first to be used or sold regardless of the actual

timing of their use or sale. Since items you have just bought often cost more than

those purchased in the past, this method best matches current costs with current

revenues. The cost of goods sold and the value of closing inventory can be determined

only after the final lot of the year has been received. This is because of the assumption

underlying the valuation of inventory. As the name LIFO suggests, the use of

inventory is valued on the basis of the inverse sequence of receipts.

3. Average Cost Method

This method of inventory valuation identifies the value of inventory and cost

of goods sold by calculating an average unit cost for all goods available for sale

during a given period of time. This valuation method assumes that ending inventory

consists of all goods available for sale. Each purchase is added to inventory and an

[40]
average cost determined. Materials are charged into cost of sales at this average until

another lot is received, when anew average unit inventory cost is calculated.

Average Cost = Total Cost of Goods ÷ Total Quantity of Goods

Available for Sale Available for Sale

4. Specific Cost Method (also Actual Cost Method)

This method of inventory valuation assumes that the organization can track the

actual cost of an item into, through, and out of the facility. That ability allows you to

charge the actual cost of a given item to production or sales. Specific costing is

generally used only by companies with sophisticated computer systems or reserved

for high-value items such as artwork or custom-made items. The materials used are

priced at their actual cost which involves identification of each lot purchased. It is the

simplest but also the most time-consuming method of determining cost of material

used is computed by multiplying the quantity used by the specific price each material.

5. Standard Cost Method

This method of inventory valuation is often used by manufacturing companies

to give all of their departments a uniform value for an item throughout a given year.

This method is a ―best guess‖ approach based on known costs and expenses such as

historical costs and any anticipated changes coming up in the foreseeable future. It is

not used to calculate actual net profit or for income tax purposes. Rather, it is a

working tool more than a formal accounting approach. It is based on a standard price

for a specified period. A standard price is fixed for each class of materials in advance

after proper investigation. The different between actual price and standard price is

transferred to purchase price variance which reveals to what extent actual costs are

different from standard material cost.

[41]
 6. BASE STOCK PRICES METHOD:

The base stock refers to the minimum quantity of stock of materials that a firm

has to maintain at all times. Under this method it is assumed that the minimum stock

which must always be carried is in the nature of fixed assets, and is never realized

while the business continues. The minimum stock is carried at original cost of

acquisition. The quality of material in excess of the base stock is available for the

production, while the base stock is used only in case of emergency.

7. REPLACEMENT / MARKET PRICE METHOD:

Under this method material are issued at the price at which they can be

replaced, that is at the market price prevailing on the date of issue. This method could

be applied principally to materials purchased in advance for the use in large

quantities, in anticipation of economic / profitable use, or in such items of stores

which are either absolute or lying unused for a long time in store.

3.10 INVENTORY CONTROL TECHNIQUES:

Effective inventory management requires an effective control over inventories.

It maintains of Inventory management. Inventory controls refers to a system which

ensures supply of required quantity and quality of inventories at the required time and

at the same time prevent unnecessary investment in inventories. The techniques of

inventory control/inventory management are as follows.

 Economic Order Quantity

 Reorder Point

 ABC Analysis

 Safety Stock

[42]
3.10.1 ECONOMIC ORDER QUANTITY:

Determination of the quantity for which the order should be placed is one of

the important problems concerned with efficient inventory management. Economic

order refers to the size of the order which gives maximum economy in purchasing any

item of raw material or finished product. One of the major inventory management

problems to be resolved is how much inventory should be added when inventory is

replenished.

 ORDERING COST:

This is the cost of placing items an order and securing the supplies. It varies

from time to time depending upon the number of orders placed and the number of

items ordered.

 INVENTORY CARRYING COST:

It is the cost of keeping items in stock. It includes interest on investment,

obsolescence losses, store-keeping cost, insurance premium etc. The large value of

inventory, the higher will be the inventory carrying cost and vice versa.

The former cost may be referred as the ―cost of acquiring‖ will the later as the ―cost

of holding‖ Inventory.

 FORMULA:

EOQ= Economic order quantity

R = quantity purchased in a year or month

Cp = cost of placing in order/ holding cost

C = consumption

[43]
  ASSUMPTIONS:

The EOQ model is a technique to determine the economic order quantity,

illustrated by us, is based on three respective assumptions, namely

1. The firm knows with certainty the annual usage of a particular item inventory.

2. The rate wish the firm uses inventory is steady over time.

3. The orders placed to replenish inventory stocks are received at exactly the

point in time when inventories reach Zero.

 APPROACHES OF EOQ:

The EOQ model can be illustrated

 By long/analytical approach are trial and error approach and

 By the shortcut or simple mathematical approach.

 TRIAL AND ERROR APPROACH:

Given the total requirement of inventory during a given period of time

depending upon the inventory planning horizon, a firm has different alternatives to

purchase its inventory. For instance it can by its entire requirements in one single lot

at the beginning of the inventory planning period.

 MATHEMATICAL (SHORTCUT) APPROACH:

The economic order quantity can using a shortcut method, be calculated by the

following equation.

3.10.2 RE-ORDER POINT:

The EOQ technique determines the size of an order to acquire inventory so as to

minimize the carrying as well as the ordering costs. In other words, the EOQ provides

on answer to the question. How much inventory should be ordered in one lot?
[44]
Another important question pertaining to efficient inventory management is which

should the order to procure inventory be placed? This aspect of inventory

management is covered under the order point problem.

The Reorder point is stated in terms of the level of inventory at which on order

should be placed for replenishing the current stock of inventory. In other words,

reorder point may be defined as that level of inventory when a fresh order should be

placed with the suppliers for procuring additional inventory to the economic order

quantity.

This is based on the following assumptions,

 Constant daily usage of inventory and

 Fixed lead time.

In other words the formula assumes with condition of certainty

The reorder point = lead time in days X Average daily usage of inventory.

Here lead time refers to the time normally taken in receiving the delivery of

inventory after placing orders with the suppliers.

The technique is based on the assumption that a firm should not exercise the

same degree of control on all items of inventory. It should rather keep more rigorous

control on items that are,

1. Most costly and

2. Slowest-turning

[45]
3.10.3 ABC ANALYSIS

An ABC analysis is ranking mechanism whereby our attention can be focused on

study of product inventory levels. It is also means ―Always Better Control‖, inventory

control should be preceded by a value analysis. A very effective as well as

economical inventory level should be based on ABC analysis.

In a process industry, number of moving spares will be very less compared to

in terms, which are not being consumed. The spares which are having nulled

consumption in financial year as called D class item. ABC analysis classification is

done among the items, which are having consumption value greater that zero, for easy

segregation. RAIL WAY ELECTRIC LOCO SHED has classified ABC as following.

Table 5

CLASS ITEMS ANNUAL USAGE REMARK

Based on the last financial

A Above 22 lakhs
year usage

Based on the last financial

B 3.25 lakh-22 lakhs
year usage

Based on the last financial

C1 Below 25 to 3.25 lakhs
year usage

C2 Less than 25 Items not covered by ABC

[46]
 For finding an items as A, B or C the annual value of consumption in the

preceding financial year shall be the basis to start with the item are identified as A, B

or C based on moving average concept to take care of situation more realistically, the

power of control of stores(COS) who is the principle head of this department(PHOD).

He is holding powers,

To procure the items up to 8crores, when it exceeds A and B the procurement

will be approval by G.M. up to 14crores exceeds than the railway board.

The spares, which are having nil consumption in a financial year are called ‗D‘

class item in a power for the next year we shall to divert more attention towards

inventory value then consumption value , so major attention is required for higher

inventory values i.e., A class and for B class.

 XYZ ANALYSIS:

This is based on the value of inventory stored. If the value is high special

efforts should be made to reduce them. This exercise can be done once a year. Items

classified as ‗X‘ denotes high inventory value.

Items classified as Y&Z denote medium and low inventory values

respectively. RAILWAY LOCO SHED has classified XYZ norms.

X= Inventory value more than Rs.5, 00,000

Y= Inventory value more than Rs.1, 00,000 to less than Rs.5, 00,000

Z= Inventory value more than zero and less Rs.1, 00,000

W= Inventory value zero

[47]
  VED ANALYSIS:

This type of analysis is applicable mostly in the case of spare parts. The

peculiarity about spare parts is that they do not follow a predictable demand pattern as

in the case of raw materials.

V = Vital

E = Essential items

D = Desirable items

 FSN ANALYSIS:

This analysis takes in to account the pattern of issued from stores. The 3 letters stands

for Fast-moving, Slow-moving, Non-moving. This analysis comes in very hand we

desire to control obsolescence.

3.10.4 SAFETY STOCK:

In the example given above the recorder level was computed presuming that

there is no uncertainty regarding the usage as well as the lead time. In actual practice,

it is almost impossible to correctly predict both of them. The actual usage as well as

the lead time may be different from the normal usage or the normal lead time. The

level of safety stock can be calculated by applying the following formula

SAFETY STOCK = AVERAGE USAGE X PERIOD OF SAFETY STOCK

[48]
 CHAPTER-IV

DATA ANALYSIS AND INTERPRETATION

[49]
4.0 DATA ANALYSIS & INTERPRETATION

4.1 INVENTORY MANAGEMENT IN RAILWAY ELECTRIC LOCO SHED

KAZIPET:

Kazipet Electric Loco Shed was established in November, 2004. It is a

Government organization. In this organization provides the three types of

services to the Indian railway sector those are here one section is repair the

express repair section, the second section is normal loco belongs to half yearly

and quarterly and minor repair section the last one is normal locomotive

belongs to major and more than one year repairs.

In this organization 350 employees are working here, in this

organization has here Three inventory store and issue section those are

electronic and general section, machine equipment section and another is

receipt section. In this organization total estimated annual inventory turnover is

9.36 corers, and here inventory in terms are 546 types. These 546 types of

inventory items are divided into sub categories like safety, vital items, nil items

another classification is cat A, B, and cat C like that

Here inventory issue methods mostly used methods are FIRST IN

FIRST OUT and LAST IN FIRST OUT methods are mostly used methods.

Here any inventory item arise surplus and died surplus. The died surplus value

declared by the survey committee consists two section engineers and two

inventory store staff member maximum 90 percent of value will be declared.

The inventory classification and issued are described as following.

[50]
 Table 6
CATEGORY
ITEMS VALUE NNR HDG
CLOSED
A 54 6.15 CRORE 05 01
B 132 2.19 CRORE 07 -
C1 232 0.91 CRORE 32 02
C2 128 0.07 CRORE 20 02
TOTAL 546 9.36 CRORE

4.2 ELECTRICAL & WARD 01

TOTAL NO.OF ITEMS 387

AAC VALUE Rs. 5.12 CRORES

NO. OF SAFETY ITEMS 44

NO. VITAL ITEMS 20

A CATEGORY 22

B CATEGORY 85

C CATEGORY 280

NO. NIL ITEMS NIL

 STOCK VERIFICATION:

Table 7
CATEGORY STOCK VALUE OF
INVENTORY
A 10% 70%
B 70% 20%
C 20% 10%

[51]
  ANALYSIS OF INVENTORY ITEMS OF WARD-01

Total inventory items of ward-01are 387 items these AAC value is

Rs.5.22. These items classified in to six categories those are safety items, vital

items category A, category B, category C and Nil items.

Here major proportion of percentage in to items are category C1 &

category C2 determine the less than 3.25 lakhs value items comes under the

category C. The second major items are category B items. This category

determine by the value of more than 3.25lakh and less than 22 lakh value items

comes under category B the remaining percentage items belongs to the

category A. This category determine by the value of more than 22 lakhs.

In this word major category is category C because this section to the

electricity and general items this is second important ward in the organization.

So generally all spare parts value as less than 3.25 lakhs. So this category a has

higher proportion of percentage in the total percentage value.

SAFETY ITEMS 55, VALUE 1.37 CRORES

VITAL ITEMS 58, VALUE 1.97 CRORES

[52]
4.3 GENERAL WARD 02

TOTAL NO.OF ITEMS 157

AAC VALUE Rs. 2.49 CRORES

NO. OF SAFETY ITEMS 11

NO. OF VITAL ITEMS 36

A CATEGORY 31

B CATEGORY 47

C CATEGORY 79

NO. NIL ITEMS NIL

 STOCK VERIFICATION:
Table 8

NUMBER OF NUMBER OF
CATEGORY PERIOD
ITEMS ITEMS UNIFIED

A 31 - 6 months

B 47 - 1 year

C 79 - 2 year

 ANALYSIS OF INVENTORY ITEMS OF WARD 2:

This ward consist of 157 inventory items all this items are classified

into 6 categories those are Safety items, Vital items, category A, category B,

category C and NIL items. This ward belongs to the mechanical items ward

[53]
like cable, batteries and filters etc., this ward average annual consumption is

2.49 crores.

In this ward also major proportion of inventory items are category C

items.

4.4 BIN CARD

CATEGORY A

Price list no: 79010805

15,600\- EAC: 7529

Description: Dungry cloth blue
WARD: 02 UNITS: 22
13(nos) Book avg. rate: 64.35
2436
Mode of purchase: supplier KVIC

Statement shows the month wise consumption, issues, receipts from

system dispose untrades.

Table 9

MONTH RECEIPTS ISSUES BALANCE

OPENING BALANCE 3000 - -

JANUARY 2007 - 400 550

FEBRUARY 2007 200 250 500

MARCH 2007 - 300 200

[54]
 APRIL 2007 1000 300 900

MAY 2007 1500 400 2000

JUNE 2007 - 250 1850

JULY 2007 - 150 1700

AUGUST 2007 - 300 1400

SEPTEMBER 2007 500 350 1550

OCTOBER 2007 - 100 1450

NOVEMBER 2007 - 350 1150

DECEMBER 2007 - 350 800

CLOSING BALANCE 2007

OPENING BALANCE 2008 3500 - -

JANUARY 2008 - 200 3300

FEBRUARY 2008 - 140 3160

MARCH 2008 - 160 3000

APRIL 2008 - 231 2769

MAY 2008 - 348 2421

JUNE 2008 - 253 2168

[55]
 JULY 2008 - 520 1648

AUGUST 2008 353 270 1731

SEPTEMBER 2008 2000 441 3290

OCTOBER 2008 - 471 2819

NOVEMBER 2008 - 315 2504

DECEMBER 2008 - 400 2104

CLOSING BALANCE 2008 - 400 2104

OPENING BALANCE 2009 - 400 2104

JANUARY 2009 54 505 1653

FEBRUARY 2009 - 403 1250

MARCH 2009 - 463 787

APRIL 2009 3322 1015 3094

MAY 2009 1000 550 3544

JUNE 2009 - 441 3103

JULY 2009 - 492 2611

AUGUST 2009 - 450 2196

SEPTEMBER 2009 - 483 1713

[56]
 OCTOBER 2009 - 482 1231

NOVEMBER 2009 3000 400 3831

DECEMBER 2009 - 521 3310

CLOSING BALANCE 2009 - 521 3310

OPENING BALANCE 2010 - 521 3310

JANUARY 2010 - 440 2870

FEBRUARY 2010 - 810 2060

MARCH 2010 - 710 1350

APRIL 2010 - 550 800

MAY 2010 537 470 867

JUNE 2010 3889 610 4146

JULY 2010 - 600 3546

AUGUST 2010 - 450 3096

SEPTEMBER 2010 - 650 2446

OCTOBER 2010 - 540 1906

NOVEMBER 2010 - 800 1106

DECEMBER 2010 544 420 1230

[57]
CLOSING BALANCE 2010 544 420 1230

OPENING BALANCE 2011 544 420 1230

JANUARY 2011 525 610 1145

FEBRUARY 2011 - 560 585

MARCH 2011 - 540 45

APRIL 2011 200 124 121

MAY 2011 - - -

JUNE 2011 - - -

JULY 2011 525 - 646

AUGUST 2011 - 600 46

SEPTEMBER 2011 738 680 104

OCTOBER 2011 - 47 57

NOVEMBER 2011 537 224 370

DECEMBER 2011 - 259 111

[58]
 Figure 4

10000

8000

6000 RECEIPTS
ISSUES
4000 BALANCE

2000

0
1st QTR 2nd QTR 3rd QTR 4th QTR

INTERPRETATION
When we compare with these three years information the following

points were find out those are.

1. In 2008 receipt was 2353 units issues 3749 units the surplus item are

1396 units with last year balance.

2. In 2009 receipt was 7376 units issues 6170 units the surplus item are

1206 units with last year balance.

3. In 2010 receipt was 4970 units issues 7050 units the surplus item are

2080 units with last year balance.

4. In 2011 receipt was 2525 units issues 3644 units the surplus item are

1119 units with last year balance.

[59]
 BIN CARD
CATEGORY B

Price list no: 43310011

Description: dry cells EAC: 2000\-

WARD: 02

Unit: 01 book avg. rate: 9.40

Mode of purchase: NIPPO

Statement shows in the month wise consumption, issues, receipts from

system dispose untrades.
Table 10

MONTH RECEIPTS ISSUES BALANCE

JANUARY 2007 300 - 300

FEBRUARY 2007 - 135 145

MARCH 2007 1000 155 1010

APRIL 2007 - 308 704

MAY 2007 - 205 497

JUNE 2007 - 145 352

JULY 2007 - 101 251

AUGUST 2007 500 205 546

[60]
SEPTEMBER 2007 - 220 326

OCTOBER 2007 - 210 116

NOVEMBER 2007 1000 264 852

DECEMBER 2007 - 418 434

CLOSING
- 418 434
BALANCE 2007

OPENING
- 418 434
BALANCE 2008

JANUARY 2008 1000 1434 1344

FEBRUARY 2008 - 228 1116

MARCH 2008 - 270 846

APRIL 2008 - 253 596

MAY 2008 - 220 376

JUNE 2008 - 203 273

JULY 2008 100 273 50

AUGUST 2008 50 90 10

SEPTEMBER 2008 55 55 10

OCTOBER 2008 40 40 10

NOVEMBER 2008 305 300 15

[61]
DECEMBER 2008 1000 413 602

CLOSING
1000 413 602
BALANCE 2008

OPENING
1000 413 602
BALANCE 2009

JANUARY 2009 500 445 657

FEBRUARY 2009 - 445 212

MARCH 2009 600 475 337

APRIL 2009 900 475 762

MAY 2009 - 455 307

JUNE 2009 - 385 3922

JULY 2009 - 460 3462

AUGUST 2009 - 420 3042

SEPTEMBER 2009 - 382 2660

OCTOBER 2009 9600 403 11857

NOVEMBER 2009 - 443 11414

DECEMBER 2009 - 356 11058

CLOSING
- 356 11058
BALANCE 2009

OPENING - 356 11058

[62]
BALANCE 2010

JANUARY 2010 - 508 10550

FEBRUARY 2010 - 738 9812

MARCH 2010 - 500 8782

APRIL 2010 - 530 7882

MAY 2010 - 900 7512

JUNE 2010 - 370 7122

JULY 2010 - 390 11549

AUGUST 2010 4687 260 11059

SEPTEMBER 2010 - 490 10839

OCTOBER 2010 - 220 10359

NOVEMBER 2010 - 480 10359

DECEMBER 2010 - 320 10039

CLOSING
- - 10039
BALANCE 2010

OPENING
- - 10039
BALANCE 2011

JANUARY 2011 - 1570 8469

FEBRUARY 2011 - 220 8249

[63]
 MARCH 2011 - 470 7779

APRIL 2011 - 270 7509

MAY 2011 - 600 6909

JUNE 2011 - 520 6389

JULY 2011 - 145 6244

AUGUST 2011 - 200 6044

SEPTEMBER 2011 - 400 5644

OCTOBER 2011 - 90 5554

NOVEMBER 2011 - - 5554

DECEMBER 2011 300 240 5614

Figure 5

10000
9000
8000
7000
6000 RECIEPTS
5000 ISSUES
4000 BALANCE
3000
2000
1000
0
1st QTR 2nd QTR 3rd QTR 4th QTR

[64]
 INTERPRETATION

This item is category A it is a vital item in the organization its maximum

level is 21000 and minimum level is 27 units.

When we compare with these three years information the following

points were find out those are.

1. In 2008 receipt was 2600 units issues 3776 units the surplus items are

1176 units with last year balance.

2. In 2009 receipt was6000 units issues 5144units the surplus items are 856

units with last year balance.

3. In 2010 receipt was 4687 units issues 5706units the surplus items are

1019 units with last year balance.

4. In 2011 receipt was 300 units issues 4725units the surplus items are

4425 units with last year balance.

[65]
 CHAPTER-V

SUMMARY

FINDINGS AND CONCLUSIONS

BIBLIOGRAPHY

[66]
5.0 SUMMARY

5.1 FINDINGS AND CONCLUSIONS

In the light of the above discussion the following findings and conclusions are

made:

This chapter deals with presentation of the summary of the work done. It also presents

certain suggestions for improving the efficiency of an organization.

In order to evaluate the performance of an inventory, the inventory

management technique is the measure available, to take a decision for efficient

utilization of inventory. The theory of application of cost accounting techniques plays

a very important role. The organization, Electric loco shed Kazipet of South Central

Railway is chosen for applying inventory control techniques to control the wastage

of inventory and overcome the ordering and issuing problems.

Understanding the specific procedure of the inventory issues and orders.

Therefore this chapter deals with presenting a total financial picture of railway.

The practical application of inventory management techniques for taking

decision whether to concentrate existing procedure or implement the new methods.

The maximum level of holding is estimated as 3 months for ―A‘ category, 6

months for ―B‖ category and 12 months for ―C‘ category respectively.

The organization structure of the department of Electric loco shed, Kazipet depicts the

executive responsible and sections operating in the department.

The stores department is divided into wings rolling stock and work shop

facilities Rolling stock which comprise of loco motives, coaches and wagons. Work

shop facilities for the maintenance of track.

[67]
 Electric loco shed is adopting periodic stock verification method for the

verification of stock. It is adopting book average price and purchasing rate for

evaluating the issue of materials.

Electric loco shed following ABC analysis as a part of their inventory control

techniques. It has been classified into three categories they are ―A‖ category items. In

this category all repetitive items are generally controlled by applying the ABC

analysis.

In Electric loco shed - Kazipet the classification of materials, in ―A‖ ―B‖ and

―C‖ category is based on the cost of items. All the items whose value is above Rs 5

Lakhs is included in category ―A‖ and whose value is less than 5 lakhs is included in

category ―B‖ and remaining items whose values is less than 3 lakhs is included in

category ―C‖.

Electric loco shed Kazipet has been using ABC analysis coupled with VED

analysis for control and remaining items whose values is less than 3 lakhs is

included in category ―C‖.

[68]
 BIBLIOGRAPHY

Chandra, Prasanna., (2008). Financial Management, New Delhi: Tata McGraw Hill.

Company Profile, (2012), Indian Railways Database, Electric Railway Loco Shed,
Kazipet.

Cooper Donald, Pamela Shindler., (2010), Business Research Methods (11th edition),
New York: McGraw-Hill.

Frequently Asked Questions, 2012, Indian Railways Fans Association Website.

[Online]. Available at: http://www.irfca.org. [Accessed 15 June 2012]

Jain, Khan, (2008), Cost Accounting, New Delhi: Tata McGraw Hill.

Maheswari, S.N., (2002), Financial Management: Principles and Practice (7th

edition), New Delhi: Sultan Chand Publishers.

Muller, Max., (2003), Essentials of Inventory Management Broadway, New York:

AMACOM.

Pandey, I.M.,(2009), Financial Management (9th Edition), New Delhi: Vikas

Publishing House.

[69]