Mba project report on inventory management pdf

Definition: " The technical approach to investing is essentially a reflection of the idea that prices move in trends which are determined by the changing attitudes of investors toward a variety of economic, monetary, political and psychological forces.

Pring Charting techniques in technical analysis: Technical analysis uses a variety of charting techniques. The Dow theory " The market is always considered as having three movements, all going at the same time. The first is the narrow movement from day to day. The second is the short swing, running from two weeks to a month or more; the third is the main movement, covering at least four years in its duration.

Bar and line charts The bar chart is one of the most simplest and commonly used tools of technical analysis, depicts the daily price range along with the closing price.

It also shows the daily volume of transactions. A line chart shows the line connecting successive closing prices.

Point and figure chart : On a point and figure chart only significant price changes are recorded. It eliminates the time scale and small changes and condenses the recording of price changes. Moving average analysis: A moving average is calculated by taking into account the most recent 'n' observations. To identify trends technical analysis use moving averages analysis. Relative strength analysis: The relative strength analysis is based on the assumption that the prices of some securities rise rapidly during the bull phase but fall slowly during the bear phase in relation to the market as a whole.

Technical analysts measure relative strength in different ways. More commonly, technical analysts look at certain ratios to judge whether a security or, for that matter, an industry has relative strength. The Advance-Decline line: The advance decline line is also referred as the breadth of the market.

Its measurement involves two steps: a. New Highs and Lows: A supplementary measure to accompany breadth of the market is the high-low differential or index. The theory is that an expanding number of stocks attaining new highs and a dwindling number of new lows will generally accompany a raising market. The reverse holds true for a declining market.

Short-Interest Ratio: The short interest in a security is simply the number of shares that have been sold short but yet bought back. Speculators buy calls when they are bullish and buy puts when they are bearish.

Mutual-Fund Liquidity: If mutual fund liquidity is low, it means that mutual funds are bullish. So constrains argue that the market is at, or near, a peak and hence is likely to decline. Thus, low mutual fund liquidity is considered as a bearish indicator. Conversely when the mutual fund liquidity is high, it means that mutual funds are bearish.

So constrains believe that the market is at, or near, a bottom and hence is poised to rise. Thus, high mutual fund liquidity is considered as a bullish indication. Technical analysis believes that the past behaviour of stock prices gives an indication of the future behaviour and that the stock price movement is quite orderly and random. But, a new theory known as Random Walk Theory, asserts that share price movements represent random walk rather than an orderly movement.

According to this theory, any change in the stock pnces IS the result of information about certain changes in the economy, industry and company. Each price change is independent of other price changes as each change is caused by a new piece of information.

These changes in stock's prices reveals the fact that all the information on changes in the economy, industry and company performance is fully reflected in the stock prices i. Hence, later it is known as Efficient Market Hypothesis. The Efficient Market Hypothesis model is actually concerned with the speed with which information is incorporated into the security prices.

Independent of historical data. This form is a direct repudiation of technical analysis. Semi-Strongly Efficient:- This form of Efficient Market Hypothesis states that the stock prices not only reflect all historical information but also reflect all publicly available information about the company as soon as it is received.

So, it repudiates the fundamental analysis by implying that there is no time gap for the fundamental analyst in which he can trade for superior gains, as there is an immediate price adjustment. Strongly Efficient:- This form of Efficient Market Hypothesis states that the market -cannot be beaten by using both publicly available information as well as private or insider information. But, even though the Efficient Market Hypothesis repudiates both Fundamental and Technical analysis, the market is efficient precisely because of the organized and systematic efforts of thousands of analysts undertaking Fundamental and Technical analysis.

Thus, the paradox of Efficient Market Hypothesis is that both the analysis is required to make the market efficient and thereby validate the hypothesis. These holdings are the result of individual preferences, decisions of the holders regarding risk, return and a host of other considerations. Portfolio management An investor considering investment in securities is faced with the problem of choosing. His choice depends upon the risk return characteristics of individual securities.

He would attempt to choose the most desirable securities and like to allocate his funds over his group of securities. Again he is faced with the problem of deciding which securities to hold and how much to invest in each. The investor faces an infinite number of possible portfolio or group of securities. The risk and return characteristics of portfolios differ from those of individual securities combining to form a portfolio.

The investor tries to choose the optimal portfolio taking into consideration the risk-return characteristics of all possible portfolios. An investor invests his funds in a portfolio expecting to get a good return with less risk to bear. It is investment of funds in different securities in which the total risk of the Portfolio is minimized while expecting maximum return from it.

It primarily involves reducing risk rather that increasing return. Return is obviously important though, and the ultimate objective of portfolio manager is to achieve a chosen level of return by incurring the least possible risk. I Safety of the investment: the first important objective investment safety or minimization of risks is of the important objective of portfolio management.

There are many types of risks. There is no such thing called Zero-risk investment. Moreover relatively low - risk investment gives corresponding lower returns. The current returns should at least match the opportunity cost of the funds of the investor.

What we are referring to here is current income by of interest or dividends, not capital gains. If there are too many unlisted or inactive share in your portfolio, you will face problems in enchasing them, and switching from one investment to another. It is desirable to invest in companies listed on major stock exchanges, which are actively traded. The portfolio should be developed considering income tax, but capital gains, gift tax too.

What a good portfolio aims at is tax planning, not tax evasion or tax avoidance. Functions of Portfolio Manager The main functions of portfolio manager are Advisory role: He advises new investments, review of existing ones, identification of objectives, recommending high yield securities etc,.

Conducting Market and Economic Surveys: There is essential for recommending high yielding securities, they have to study the current physical properties, budget proposals, industrial policies etc,. Financial Analysis He should evaluate the financial statements of a company in order to understand their net worth, future earnings, prospects and strengths. Study of Stock Market He should see the trends of at various stock exchanges and analyse scripts, so that he is able to identify the right securities for investments.

Study of Industry To know its future prospects, technological changes etc,. Decide the type of Portfolio Keeping in the mind the objectives of a portfolio, the portfolio manager have to decide whether the portfolio should comprise equity, preference shares, debentures convertible, non-convertible or partly convertible, money market securities etc,. Specification of investment Objectives and Constraints:- The first step in the portfolio management process is to specify one's investment objectives and constraints.

The commonly stated investment goals are: a Income b Growth c Stability The constraints arising from liquidity, time horizon, tax and special circumstances must be identified. Choice of Asset mix: The most important decision in portfolio management is the asset mix decision. Very broadly, this is concerned with the proportions of 'stocks' and 'bonds' in the portfolio.

Two broad choices are available an active portfolio strategy or a passive portfolio strategy. An active portfolio strategy strives to earn superior riskkadjusted returns by resorting to market timing, or sector rotation, or security selection, or some combination of these.

A passive portfolio strategy, on the other hand, involves holding a broadly diversified portfolio and maintaining a pre-determined level of risk exposure. Selection of Securities: Generally, investors pursue an active stance with respect to security selection. The factors that are considered in selecting bonds are yield to maturity, credit rating, term to maturity, tax shelter and liquidity.

Portfolio Revision. The value of a portfolio as well as its composition - the relative proportions of stock and bond components - may change as stocks and bonds fluctuate. In response to such changes, periodic rebalancing of the portfolio is required. This primarily involves a shift from stocks to bonds or vice versa. In addition, it may call for sector rotation as well as security switches. The key dimensions of portfolio performance evaluation are risk and return and the key issue is whether the portfolio return is commensurate with its risk exposure.

Thus, a retired executive invest in fixed income securities for a regular and fixed return. A business executive or a young aggressive investor on the other hand invests in new and growing companies and in risky ventures. Modern portfolio theory This theory suggests that the traditional approach to portfolio analysis, selection and management may yield less than optimal result that a more scientific approach is needed based on estimates of risk and return of the portfolio and attitudes of the investor towards a risk return trade off steaming from the analysis of the individual securities.

In this regard India after government policy of liberalization has unleashed foreign market forces. Forces that have a direct impact on the capital markets. An individual investor can't easily monitor these complex variables in the securities market because of lack of time, information and know-how. That is when investors look in to alternative investment options. Once such option is mutual funds. But in the recent times investor has lot faith in this type investment and has turned towards portfolio investment.

The scientific analysis of risk and return is modern portfolio theory and Markowitz laid the foundation of this theory in He began with the simple observation that since almost all investors invests in several securities rather that in just one, there must be some benefit from investing in a portfolio of several securities.

He shall act both as an agent and trustee for the funds received. The proper goal of portfolio construction is to get high returns at a given level of risk. The inputs from portfolio analysis can be used to identify the set of efficient portfolios. From this set of portfolios, the optimal portfolio has to be selected for investment.

Markowitz is credited with introducing new concept of risk measurement and their application to the selection of portfolios. He started with the idea of risk aversion of investors and their desire to maximize expected return with the least risk. Markowitz used mathematical programming and statistical analysis in order to arrange for. To reach this objective, Markowitz generated portfolios within a reward-risk context.

In other words, he considered the variance in the expected returns from investments and their relationship to each other in constructing portfolios. In essence, Markowitz's model is a theoretical framework for the analysis of risk return choices. Decisions are based on the concept of efficient portfolios. A portfolio is efficient when it is expected to yield the highest return for the level of risk accepted or, alternatively, the smallest portfolio risk or a specified level of expected return.

To build an efficient portfolio an expected return level is chosen, and assets are substituted until the portfolio combination with the smallest variance at the return level is found. As this process is repeated for other expected returns, set of efficient portfolios is generated.

Similarly, for a given level of expected return, investor prefer less risk to more risk. Under these assumptions, a single asset or portfolio of assets is considered to be "efficient" if no other asset or portfolio of assets offers higher expected return with the same or lower risk or lower risk with the same or higher expected return.

Production inventories, MRO inventories, in process inventories and finished goods inventories. Additional: Investment in stock is a necessary feature of manufacture if there should be continuous and co-ordinate flow of work, towards which production planning is directed. The extent to which stock investment is prudent must bear relationship to prevailing economic conditions.

So far affect the availability of the supply and price trends it is also dependent to a large extent on the nature of the product concerned. It is often useful to express the investment in stock in terms of its rate of annual turnover and this can vary between wide extremes quite obviously it is impossible to down a yard stick against which stock investment should be measured.

The importance of stock control arises from the demand which investment in stock places upon the available liquid capital. It is of far wide significance from the point of cost of reduction by virtue of the fact that stock can give rise to the following sources of cost.

Stock taking. Customer taste. Price fluctuations. Product design and variety are major influence upon stocks determining as they do the number of different items which is necessary to hold the solution to this aspects of the problem may lie in a greater degree of standardization and simplification in product Projectskart.

COM design, the advantage of which come readily apparent not only in this condition, but also throughout production. Stock investment and the costs, which can be associated with it, May also; be reduced as a result of: 1. Improved production planning. Negotiation of forward contracts and scheduled delivery dates with suppliers. The establishment of realistic maximum and minimum stock kevels for each item.

Reduced manufacturing cost. Negotiation of preferential terms with suppliers. Efficient stock records, regular stock keeping a perpetual or other bases and check upon slow moving or absolute items. The materials requirements can be classified as 1. Raw materials. Components purchased from outside sources. Complete saleable products purchased from outside sources.

The division between components products made by the business and those purchased outside is normally laid down on the budget, although such plans may be subject to amendment in respect of difficulties encounter when preparing the detailed schedules.

COM The purpose of Projectskart. Inventory constitutes the most significant part of current assets of a large majority of companies in India. Inventory includes the following things: 2. COM Criteria for judging the inventory system While the overall objective of the inventory system is to minimize the cost to the firm at the risk level acceptable to management, the more proximate criteria for judging the inventory system are: Comprehensibility Inventory systems range from the utterly simple to the weirdly complex.

Irrespective of how simple or complex a system is, regardless of whether it is automated or manual; it should be clearly understood by all affected parties. The system must be properly explained to all concerned so that its purpose, logic and rationale are transparent. This generates enthusiasm for the system and enhances its credibility. Can new products, new situations, and new requirements be handled by the system? A certain degree of flexibility and adaptability must be designed into the system to make it versatile.

Of course this cannot be and this should not be carried too far. The system must not provide for every possible and imaginable contingency. If it is developed with this ideal, it is likely to be a complex monstrosity.

Remember the caveat that the design of any system should ordinarily take care of about 90 percent of the cases, leaving the balance 10 percent to be handled by hand.

Timeliness Inventories may suffer loss in value on account of variety of factors. The inventory system should be capable of inducing timely action. It should provide adequate forewarning, which triggers appropriate corrective steps. A proper inventory control solves the acute problem of liquidity but also increase profit and causes substantial reduction in working capital of the concern. The following are the important tools and techniques of Projectskart.

It is frequently used in Projectskart. Pareto analysis is used to arrive at this prioritization. Taking inventory as an example, the first step in the analysis is to identify those criteria, which make a significant level of control important for any item. Two possible factors are the usage rate for an item and its unit value. Close control is more important for fast moving items with a high unit value.

Conversely, for slow moving, low unit value items the cost of the stock control system Projectskart. COM may exceed the benefits to be gained and simple methods of control should be substituted.

In most inventories a small proportion of items accounts for a very substantial usage in terms of monetary value of annual consumption and a large proportion of items accounts for a very small usage in terms of monetary value of annual consumption. ABC analysis, based on this empirical reality, advocates in essence a selective approach to inventory control, which calls for a greater concentration of effort on inventory items accounting for the bulk of usage value.

This approach calls for classifying inventories into three broad categories, A, B, and C. Category A, representing the most important items, generally consists of 15 to 25 percent of inventory items and accounts for 60 to 75 percent of annual usage value. Category B, representing items of moderate importance, generally consists of 20 to 30 percent of inventory items and accounts 20 to 30 percent of annual usage value.

Category C, representing items of least importance generally consists of 40 to 60 percent of inventory items and accounts for 10 to 15 percent of annual usage value. Procedure The following may be used for determining the three categories: 1. Rank the items of inventory, in descending order, on the basis of their annual consumption value and number them 1 to n. Record the running cumulative totals of annual consumption values and express them as percentages of the total value of consumption.

Express each number in the list, 1 through n, as a percentage of n these percentages are actually cumulative percentages. The cumulative percentages of consumption value against the cumulative percentages of numbers and classify items into three broad categories: A, B and C.

The nature of these categories has been described earlier. Factors Influencing Projectskart. The principal effects of these factors are reflected most strongly in the levels of inventory and the degree of control planned in the inventory control system. The factors include type of product, type of manufacture, volume of output and others. If the materials used in the manufacture of the product have a high unit value when purchased, a much closer control is usually in order.

If the material used in the product is in short supply or is rationed by the Government, this may influence the purchase of this material and its stock maintained. The manufacture of standard products as compared to custom made items will influence inventories, material needed to manufacture standard product is easy to obtain and a close on the stock is not necessary.

Material required to product made to order item needs strict control to ensure to that. No item is lost in the process of manufacture such materials and tools are of special and expensive type and a loss of any small part will hold up the production. The sales department wants a good stock of furnished products for ensuring maximum customer service.

The finance department may feel that inventories are locking up capital, which should be earning a return thus each department although conscious of its own cost, may be unable to see the total cost, it is therefore apparent than an integrated approach for control the inventories is essential without proper control the inventories have tendency to grow beyond economic limits, tie up funds and increase the cost of maintenance or the carrying cost.

At the same time non-availability of inventories involves the cost of stock outs re-ordering cost and additional transit cost. The core of materials management is inventory control. Inventory control reinsures an adequate supply of materials, stores etc. It keeps down investment in inventories inventory carrying cost and obsolescence loses to the minimum.

If facilities purchasing economics through the measurement of requirements on the basis of recorded experience. It eliminates duplications in ordering or in replenishing stocks by controlling the sources from which purchase requisition emanate. It provides a better utilization of available stocks by facilitating enter department transfer within a company. It provides a check against the loss of materials through carelessness or pilferage. It facilitates cost accounting activities by providing a means for allocating material costs to products, department or other operating accounts.

It enables management to make cost and consumption comparison between operations and periods. Perpetual inventory values provide a constant and reliable basis for preparing financial statements Symptoms of Poor Management Weakness in the planning and control of inventories are usually indicated by or expressed in complaint about specific systems or conditions rather than as overall criticism of the inventory.

Periodic, severe backorders inability to meet delivery promises. Continuously growing inventory quantities while the other backing is remaining constant or is also growing. High rate of customer turnover or order cancellations. Frequent need for uneconomical production runs to meet sales requirements.

Excessive machines down time because of material shortage. Periodic lack of adequate storage spaces. Consistently large inventory writes down because of price decline distress scales, disposal of obsolete or slow moving stock.

Widely varying rates of inventory loss of turnover among branch ware houses of among inventory items. Consistently large write down of times of physical inventory taking. Inventory control techniques represent the operational aspects of Projectskart.

Several techniques of inventory control are in use and depend on the convenience of the firm to adopt any of the techniques what should be stressed, however is the needed to cover all items of inventory and all stages, i.

Always better, control ABC classification. High, medium and low HTML classification. Vital essential and designable VED classification. Scarce difficult and easy to obtain SDE 5. Fast-moving, slow moving and non-moving FSN 6.

Economic order quantity EOQ Projectskart. COM 7. Maximum minimum system. Two-bin system. Materials requirements planning MRP Just in time. An inventory catalogue serves, first as a medium of communication. It enables personnel located in many different departments to perform their jobs more effectively.

A second benefit produced by an inventory catalogue accuses to the inventory control operation staff. This benefit takes the form of more complete and correct records through the reduction of duplicate records identical parts. COM 3. In terms of purchasing power, It is going to touch new heights in coming years. With a stable per cent annual growth, rising foreign exchange reserves and rapidly increasing FDI inflows, India has emerged as the second fastest growing major economy in the world.

Even as interest rates are headed north speculators fear a slowdown in Public Enterprises and foreign financial institutions remain positive on the reality Sector. A world class villa project in Bangalore premium villas designed bySurbana.

In 45 acres of lush greenery. This is designed by an International Architect Surbana from Singapoore. High class community living. International standard Club — House. Magnificent landscaped gardens. Professional construction management. CLA is geared to be a front-runner in the real estate sector with the objective of injecting a dose of professionalism, efficiency and transparency into the business, thereby propelling its growth.

Currently on the anvil, are projects in Mysore, Bangalore and Chennai to build international standard townships. This will be followed by projects nationwide. The nature of work is selling and in real estate sector. Win-win attitude towards both employees and customers; practicing integrity; Commitment to quality and excellence; Encouraging creativity and innovation without any prejudice.

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The project will have a lot of palm trees, landscape gardens and some water bodies. Palm spring, a first-of-its-kind international villa project in Bangalore. On 45 acres of serene greenery, under the blue sky, lie not many, but just a few luxury villas that make a fine statement of style.

Over 99 international villas are been brought up. To choose a plot it may vary for Rs25,00, to Rs50,00, COM Projectskart. Organization Head and team. International Standards. Good amenities. One of the major strengths of HEEP Hardwar is its free, open and consistent work culture for making continuous improvement evident from the participation of employees in Suggestions and Quality Circles.

To recognize their efforts. The journey to excellence is unending. It is a continuous search with commitment and belongingness. Sky indeed is not the limit for perfection. The transition has strongly experienced a silent internalization with a blend of commitment of the existing human resource for creating benchmarks for excellence. The surge has started and is getting communicated down the.

Based on feedback Report of Assessment, critical success factors are identified and TQ action plans are drawn. Cii feedback has gone a log way in.

Executive Director laid the challenge of achieving the TQ score of To give further boost Apex Group was formed. BHEL viz. Role of finance functionFinance function is the backbone of any organization.

The finance function plays a very critical role in the maximization of shareholders who provide the funds to the company. The importance of the finance functions cannot be undetermined in any organization as many companies have perished not due to bad production management but due to poor financial management. Finance function acts like radar of the ship, which guides the direction of the ship and saves it from the perils of the sea. In the same way finance department provides timely and relevant information to various levels of management for the purpose of decision making.

Review and reconciliation as well as follow up of recovery of outstanding dues from the customers in coordination with the commercial department. They deal mainly with the following items of works: i. Pricing of stores receipt vouchers including fixed assets vouchers and fixed assets receipt vouchers. Maintenace of accounts of advances to suppliers,claims recoverable ,claims for short suppliers ,rejections and rectifications of materials and sundry creditors.

Maintenance of accounts of contractors with regard to security deposits, earnest money, progressive payments. Payments and accounting of all expenditure related to revenue particularly with regard to expenditure incurred on repair and maintenance of plant and machinery, building and roads.

Developing variance Management Information report for different parts of management for purpose of cost control and reduction.

Interaction with management of top management link for achieving cost control and cost reduction and thereby improving bottom line of the company. All account work related to personal payments and disclose profit and loss account of the company. Dealing with other statutory authority such as P. Commissioner, ESI employee state insurance. To ensure correct payment of salary and wages and other benefits to employees in, telephone and miscellaneous payments.

Maintenance and accounting of fixed assets accounts. Preparation of long term profit plans based on broad objectives of the company. Inventories constitute the most significant part of current assets of a large majority of companies in India.

To maintain a large size of inventory, a considerable amount of fund is required to be committed to them. It is, therefore, absolutely imperative to manage inventories efficiently and effectively in order to avoid unnecessary investment. A firm neglecting the management of inventories will be jeopardizing its long-run profitability and may fail ultimately.

It is possible for a company to reduce its levels of inventories to a considerable degree, e. Production and purchase officials use this word in term of unit control whereas in accounting this word is used in term of value control.

As investment in inventory represents in many cases, one of the largest assets item of business enterprises particularly those engaged in manufacturing, wholesale trade and retail trade. Sometimes, the cost of material used in production surpasses the wages and production overheads.

Hence, the proper management and control of the capital invested in the inventory should be the prime responsibility of accounting department because resources invested in 8. Rather, on the hand , they are costing the firm money both in terms of capital costs being incurred and loss of opportunity income that is being foregone. Inventories are stock of the product a company is manufacturing for sale and components that make up the product.

Raw materials inventories are those units which have been purchased and stored for future productions. They represent products that need more work before they become finished products for sale. Stocks of raw materials and work-in-process facilitate production, while stock of finished goods is required for smooth marketing operations.

The objective of the inventory management should be the maximization of the value of the firm. The firm should therefore consider: a.

Two types of costs are involved in the inventory maintenance: 1-Ordering costs: - Requisition, placing of order, transportation, and staff services. Ordering costs are fixed per order size increases. Carrying cost increases. The economic order quantity EOQ of inventory will occur at a point where the total cost is minimum. The inventory level at which the firm places order to replenish inventory is called reorder point.

It depends on a the lead time and b the usage rate. Under perfect certainty about the usage rate, the instantaneous delivery i. The firm should strike a trade-off between the marginal rate of return and marginal cost of funds to determine the level of safety stock. A firm, which carries a number of items in inventory, which differ in value, can follow a selective control system. A selective control system, such as the A-B-C analysis, classifies inventories in to three categories according to the value of item:.

C-Category consists of lowest value items. More categories of inventories can also be created. Tight control may be applied for high-value items and relatively loose control for low-value items. Why business houses hold inventories? There are at least three motives for holding inventories: 1-To facilitates smooth production and sales operation transaction motive.

There are three basic forms of inventory : 1. Stores In Transit: These are item which have been shipped or dispatched from vendor but not yet reached their destination in stores and not yet accounted for in the priced ledger.

Production Inventory : a Work In Progress Inventory: This includes all product materials on which the company has performed some manufacturing, processing or converting operation but which are not yet in finished form ready for sale. These may be located at a company plant or store for a branch for a commercial warehouse.

Its excess or inadequacy, both has adverse effects on liquidity and profitability of a firm. Insufficient and inefficient procedures may lead to unbalanced inventories e.

All these insufficiencies will ultimately have an adverse effect on profits. Control techniques, such techniques are applied for reducing the investment in inventories, out adversely affecting the smooth running of production and sales operation.

Material Management is an integrated function of the various sections of an organisation dealing with the supply of materials and allied activities in order to achieve maximum coordination and optimum expenditure on materials. Different types of analysis each having its own specific advantages and purpose help in bringing a practical solution to the control of inventory.

The most important of all such analysis is the ABC analysis. Through this analysis the professional inventory manager will concentrate his efforts on were they will yield the greatest rewards. The same degree of control is not justified for all the three classes of items. The class of items requires the greatest attention and the class of items the least attention. Class C items need no special calculations since of they represent a low inventory investment. The order quantity might be a one-year supply a periodic review once year class B items could have CODs developed into a semi-annual review of the variables.

Class of items could have EOQs developed a review of the variables each time an order is placed. The major concern of an ABC classification in to direct attention to there inventory items 8. If inventory levels can be reduced for claim of items it result in a significant reduction in inventory investment. This analysis specially pertains to the classification of maintenance spares denoting the essentiality of blocking spares.

V - stands for vital - items when out of stick or when not readily available, completely bring the production a hault. E - Is for essential items without which temporary losses of production or dislocation of production week occurs. D - Denotes desirable items - all other items, which are necessary but do not cause any immediate.