Department of Fashion Design and Technology

Uttara University
 Course Name: Production Maintenance & Management
Course Code: IE3009
Assessment on
Inventory Control in the Apparel Industry

Submitted To:
Sudipta Bain
Assistant Professor & coordinator
Department of FDT Submitted By:
Uttara University Rafe uzzaman (2201401055)
Batch: 23th
Semester:5th
Uttara University
 Letter of Testimonial

September,9th, 2021

Mr. Sudipta Bain

Assistant Professor& Coordinator
Department of Fashion Design and Technology
Uttara University

Subject: Assignment Submission

Dear sir,
I am very pleased to submit this assignment on the topic “INVENTORY CONTROL IN
APPAREL INDUSTRY”. that you have approved and assigned as compulsory requirements of
IE3009. I think that this assignment topic has helped me a lot in enhancing the knowledge about
the respective subject matter, as well as empowering my skills. I have really enjoyed working on
this topic and hope that this effort will meet the requirements .

I am very glad that you have given me this opportunity to prepare this assignment and I hope you
will accept my assignment considering the limitations.

Thanking You,
Sincerely,
Md. Rafeuzzaman
ID : 2201401055
Batch : 23th
Semester:5th
 Acknowledgement

At first, I would like to express my deepest gratitude to Almighty Allah for giving me the strength
to Complete the task within the schedule time.

I take this opportunity to place on record my grateful thanks to my course instructor Mr.Sudipta
Bain ,Assistant Professor and Coordinator ,Department of FDT, Utatra University for his valuable
guidance in the preparation of my project work. I am indebted to him for his excellent support and
guidance throughout the study

Finally, a silent stream of gratitude is for my most adorned parents whose blessing is always with
me in this world
 Executive Summary

Inventory is the most important element of any system dealing with the supply, manufacture and
distribution of goods and service. Holding inventory is often interpreted as carrying an asset, but
also means carrying risk in terms of obsolescence deterioration axed quality faults in financial
terms inventory impacts the balance sheet, cash flow, profit and loss account. Operationally
inventory affects production efficiency and on time delivery identifies inventory a key component
for measuring business performance in manufacturing environment. Thus good management of
inventory,

Today’s clothing brands, fashion retailers and apparel companies manage inventory between
physical stores and ecommerce platforms. Fashion retailers need to quickly unload items that are
selling well. They need to order the items that will be popular next month or even next week.

Meanwhile, the cost of everything from raw materials to retail space is going up. Anyone who
sells apparel, from big luxury brands to small fashion companies, must do everything they can to
make operations more efficient. Brick and mortar retailers are looking for ways to add value to
their customers’ shopping experience, while online shopping becomes more and more attractive
to consumers.

Then inventory management lets apparel industry to enjoy many benefits which include achieving
inventory balance, using resource wisely, cutting costs, saving time and becoming more efficient
and planning a head for seasonal changes in demand.
 Table of Contents
Letter of Testimonial----------------------------------------------------------------------------------------
Acknowledgement-------------------------------------------------------------------------------------------
Executive Summary------------------------------------------------------------------------------------------

1. Introduction -----------------------------------------------------------------------------------------------1
1.1 Objective of the Study -----------------------------------------------------------------------------------1
1.2 About Inventory ------------------------------------------------------------------------------------------2
1.3 Inventory Management ----------------------------------------------------------------------------------2

2. Inventory Control------------------------------------------------------------------------------------------2
2.1 Importance of Inventory control in Apparel Industry------------------------------------------------3
2.2 Objectives of Inventory Control in Apparel Industry------------------------------------------------3
2.3 Components of Inventory Control in Apparel Industry ---------------------------------------------4
2.4 Inventory types in Apparel Industry--------------------------------------------------------------------5

3. Inventory Procedure in Apparel Industry---------------------------------------------------------------5

3.1 Scope of Inventory Control------------------------------------------------------------------------------6
3.2 Inventory System for Raw Material--------------------------------------------------------------------6
3.3 Inventory System for Grey Fabric Store---------------------------------------------------------------6
3.4 Stages of Grey Fabric Inventory Control--------------------------------------------------------------7
3.5 Inventory System for Dyes and Chemicals------------------------------------------------------------7
3.6 Inventory System for Spares ----------------------------------------------------------------------------7
3.7 Inventory System for Finished Goods -----------------------------------------------------------------7
3.8 Stages of Finished Fabric Inventory Control----------------------------------------------------------7
3.9 Inventory Procedure--------------------------------------------------------------------------------------8
3.10 Inventory Software Used in Apparel Industry ------------------------------------------------------8

Conclusion ----------------------------------------------------------------------------------------------------9
Reference -----------------------------------------------------------------------------------------------------9
1. Introduction

Inventory control is a crucial part of every industry. Inventory control of Apparel, textile, and
fashion industry must keep inventory in their warehouse/store. Inventory control is called stock
management which saves cost, time and increases the work efficiency of your warehouse.
Inventory control can be defined as a list of in housed, unsold, and unshipped goods in an organized
way at the same time; balance quantity, booking quantity, shipping quantity everything I mean the
real status of stock/selling/shipping/moving goods

From the raw materials source to the textile manufacturers to the quality assurance officer to the
end customer, every item of clothing passes through many hands. Clothing inventory management
encompasses all these stops

Inventory management, at its most basic, is the process of tracking, managing, and maintaining an
optimal inventory level. Inventory management software for the apparel industry tracks clothing,
shoes, jewelry, accessories and related items as they move between locations. Each of these steps
were once manual, the information tracked by hand in paper spreadsheets and logs.

Today, real-time inventory automation improves accuracy and saves time. In the warehouse, for
example pickers, checkers, stagers and truck loaders and material operating handlers use a
centralized, cloud-based way to stay up-to-date and to make the best decisions. Business owners
now have inventory management software that lets them respond quickly to fashion trends and
other changes in market demands and conditions.

1.1 Objective of the Study

➢ To examine the apparel industry inventory management in appropriate way.

➢ To compare and contrast the actual practice of apparel industry inventory management
➢ To determine the industry strength and weaknesses with regarding to inventory
management.

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1.2 About Inventory

The word inventory has been defined in many ways. Inventory are stock of raw materials, work in
process and finished good. That appear at numerous points throughout a firms production and
logistic channel. inventory is the stock of any item or resource used in an organization

1.3 Inventory Management

Inventory management is the process of tracking product orders keeping adequate amount of
products on hand and organizing products in warehouse and retail location. And also inventory
management is the active control program which allows the management of sales, purchases and
payments with good inventory management, companies are able to monitor what shipments they
have coming in and going out to customer, allowing them to keep just enough inventory in stock
to meet demand.

2. Inventory Control

Inventory control or stock control can be broadly defined as "the activity of checking a shop's
stock". More specifically inventory control may refer to: In operations management, logistics and
supply chain management, the technological system and the programmed software necessary for
managing inventory.

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2.1 Importance of Inventory Control in Apparel Industry

➢ To know about the required amount of raw material

➢ To know about the job no which would be processed
➢ To be continued the production process
➢ To find out the profit or loss of a company
➢ Stock and stock value for consumption measuring

2.2Objectives of Inventory Control in Apparel Industry

Reduce Inventory Errors

Modern inventory management solutions can reduce the errors that plague business. For
example, forecasting errors create serious headaches. Order too much and end up having to
mark down inventory to move it. Order too little and you’re missing sales. You’re also missing the
savings that come from ordering inventory at scale. Reducing inventory errors should be a top
priority. Each order goes through a picker, checker, stager and loader, If you’re using paper pick
tickets to pull orders, the likelihood of delays and canceled orders goes up.

Reduce Carrying Costs

The carrying costs of inventory include the total cost of purchasing, warehousing and handling
inventory. It also includes the cost of markdowns if clothing items don’t sell quickly. An enterprise
resource planning (ERP) software integrated with a warehouse management system (WMS)
gives full visibility of inventory at all times.

Reduce Out of Stock Inventory

An ERP system helps avoid missing sales due to a lack of inventory. By tracking the amount of
every item have on hand in real-time, these solutions help to order most in-demand items when
stock levels reach a designated level.

Increase Supply Chain Accuracy

Optimized warehousing, real-time item tracking, packaging accuracy, and rapid delivery all
contribute to supply chain success. When applied globally, inventory management technology
empowers fashion retailers and apparel companies to track their entire supply chain
comprehensively. Today’s inventory solutions improve the accuracy of your supply chain
fulfillment, from raw textiles to finished garments.

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Improve Planning/Forecasting
Accurate forecasting allows to better meet customer demand while lowering overall operational
costs. Accuracy, in relation to the supply chain, can be measured using the Mean Absolute
Percent Error (MAPE). MAPE is calculated by dividing the absolute value of the difference
between forecasted and actual sales, dividing the result by actual sales, and multiplying the
result by 100.

Optimize Fulfillment
Optimizing the fulfillment process means leveraging automated order processing at every
touchpoint: warehouse operations, administration, customer service and more. Today’s
technology can verify customer credit, ensure accurate pricing, and ensure fast delivery, all while
minimizing processing errors.

Streamline Production
Producing goods at the right time, in sufficient quantity to meet demand, at minimum possible
cost, at the level of quality customers demand. It means scheduling production and calculating
deadlines. It means tracking finished goods and allocating them to sales orders.

2.3 Components of Inventory Control in Apparel Industry

Demand

Demand is an indispensable component of inventory management. Inventory decisions are

always made with reference to the future demand. The decisions are taken when the manager
is certain about the requirements in his department and again when the certainty is not
ensured. The later state tells nothing about the likelihood of future levels.

Order Quantity

After determining the quality to procure, the buyer must decide as how much to buy. Most
material requirements are continuing requirements, cumulative or total needs. Such a system of
requirements. is a far better guide than the day to day needs. In the procurement function, the
term quality has a special meaning and just as there is a need for a most suitable and economical
quality of material, there is also a requirement for a most economical ordering quantity
Lead Time

The longer the lead time, the more time is required to get the results of production and vice
versa. Inventories rise when lead time increases to maintain plant operations. However, no safety
stocks would be required, if lead time is zero, as replenishment of the stock can be done

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immediately without any problem. In case the lead time is longer, it is more difficult to predict
the usage or consumption, while the order is open. If the procurement is zero, it would be
necessary to make any predictions. However, variations in lead time can be quite substantial.

Economic Order Quantity (EOQ) Concept

Economic order quality is referred to that size of order which gives maximum economy in
purchasing the materials. It is also known as optimum or standard order quality or EOQ offers
solutions to inventory problems. The concept of EOQ is equally more applicable to raw materials,
storage of finished goods and in transit inventories. Economic order quality concept helps in
finding approximate levels for holding inventories. It facilitates the fixation of ordering sequence
and the qualities so as to minimize the total material cost. EOQ is the point of minimum cost at
which the ordering cost will be just equal to the carrying cost such that neither excess material is
ordered, nor too many orders are placed for the same material during a period in time. This also
depends upon the nature and complexity of production etc. One of the formulae for calculating
EOQ is as: When: Q = Ideal purchase quantity S = Cost of ordering

2.4 Inventory types in Apparel Industry

➢ Monthly inventory
➢ Annual inventory

3. Inventory Procedure in Apparel Industry

➢ Goods are checked against purchase order

➢ Upon receipt, they are to be tallied against the truck challan.
➢ Material receiving and inspection report(MRIR) is prepared. Received quantity is
mentioned and noted down.
➢ Inspection of minimum of 10% of the goods received covering all colors.
➢ Stored in a designated location based on the production plan process.
➢ The stock ledger is to be updated in the computer and in the bin card.
➢ A trim card is to be prepared upon completion of the inventory.

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3.1 Scope of Inventory Control

Raw materials
➢ Dye store.
➢ Other chemicals.
➢ Grey fabrics.
Finished fabric.
Spare parts.
General store
Capital equipment.
Accessories.
Stationary.
Maintenance parts.

3.2 Inventory System for Raw Material

➢ Raw materials partially received from production planning & directly from head office.
➢ Material receiving & inspection report is prepared. Received quantity is mentioned and
➢ noted down.
➢ Submitted to Q.C. department. Some are OK & few rejected.
➢ Entry of data of goods in DATATEX.
➢ Goods are arranged according to OK or rejected group.
➢ Department gives store requisition to warehouse.
➢ As per requisition materials supplied & this record are noted down.

3.3 Inventory System for Grey Fabric Store

All the grey fabrics are stored in the fabric store near the batch section. Different types of fabric
are listed in the sheet according to fabric types, quantity and cons1.uner’s requirement. Fabrics
GSM, shrinkage, diameter & other properties are also taken into consideration. The batches are
prepared by taking the required fabrics from the grey store.

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3.4 Stages of Grey Fabric Inventory Control

➢ After knitting production.

➢ Grey inspection.
➢ Warehouse.
➢ Batch preparation.
➢ Dye house.

3.5 Inventory System for Dyes and Chemicals

There is a different store for dyes and chemicals. Varies types of dyes and chemicals are stored
here according to dyes and chemicals companies. Different types of dyes and chemicals are listed
in a sheet. In the sheet the stored quantity of dyes and chemicals are also included. Every day the
sheet is updated and a copy of this sheet is supplied to the dyeing manager, dye house and lab
section.

3.6 Inventory System for Spares

In any textile mill required amount of spears of different machines are stored in the mechanical
store room. All the spears are listed in a sheet which is controlled by the mechanical & maintenance
personnel. Spares are arranged in the store room according to their size, quantity & requirements.
There are shelves in the store room to keep the small spare parts

3.7 Inventory System for Finished Goods

Any textile mill supplies its finished dyed fabrics to its garments section. So, dyed finished fabrics
are stored for short time in the finishing section. All the delivered fabrics are noted on the tally
khata according to the lot no, quantity, fabrics diameter, buyer's name, Color & considering other.

3.8 Stages of Finished Fabric Inventory Control

➢ Finishing section.
➢ After final inspection

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 ➢ Warehouse.

3.9 Inventory Procedure

➢ Bin Card
➢ Store Requisition
➢ Store Ledger Account
➢ Daily Inspection & Package Report
➢ Monthly Stock & Consmnption Report
➢ Monthly LIC wise Delivery Report
➢ Received Delivery & Balance Stock

3.10 Inventory Software Used in Apparel Industry

➢ Datatex ERP

➢ WFX

➢ APPS - Inventory management

➢ Stage ERP

➢ BlueCherry

➢ Apparel connect

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Conclusion

From the above study it can be said that inventory management is the lifeline of apparel
manufacturing business. With evolving consumer expectations and an ever-expanding e-
commerce marketplace, fashion companies will rely on advanced clothing inventory management
strategies to meet demand while keeping stock levels reasonable.

Reference

➢ https://www.fdm4.com/apparel-industry-inventory-management-guide/

➢ https://apparelmagic.com/clothing-inventory-management-guide/

➢ https://www.apparelsearch.com/terms/i/inventory_management.html

➢ https://www.logiwa.com/blog/clothing-inventory-management