1.3 Performance

UK Beverages (Pvt) Ltd won a prestigious Gold & Silver Awards at the 20^th National Chamber of Exporters (NCE) Awards Ceremony held in September 2012. The award of Gold marks with distinction the value addition of packing Riston teas is recognition of outstanding performance and compliance with good business practices.

UK Beverages (Pvt) Ltd participated in a major international food exposition ‘World Food Moscow’, which was held in Moscow in last year. The food show, World Food Moscow, is the major event during the Fall, a meeting place for the leading food and drink producers and retailers from Russia and abroad. The Riston tea company introduced both known products which have already gained loyalty of millions of consumers all over the world and also novelty products to the market at this show.

1.4 Issues & impact of issues on the performance

The major issues for company are increasing inventory cost, financial difficulties which arise due to non payment of cash on time by customers, production delays arise from inaccuracy forecasting of raw materials & machines breakdowns.

1.5 Problem Statement

UK Beverages (Pvt) Ltd has reported that there is an increasing trend in the inventory holding cost in last few years. So with this situation top management of the company will not be happy & the company will earn losses in future. This will affect the revenue of the company & also the profit. Therefore, the research has to be done in order to identify the causes for increase of the inventory holding cost and develop & implement appropriate solution to the company to overcome it.

1.6 Issues

·         Increases of the inventory cost in UK Beverages (Pvt) Ltd.

·         Ineffective use of inventory handling.

·         Lack of labour skills, knowledge and experience for inventory management.