This document summarizes a study on inventory management at the Fairfield by Marriott hotel in Visakhapatnam. It discusses the hospitality industry and Marriott International. The objectives are to analyze inventory levels and turnover at the hotel and provide suggestions. Methodology included primary data from interviews and secondary data from reports. Findings show inventory usage increased yearly except 2019-20. ABC category C performed best. Suggestions include gradually increasing ABC category items, focusing on slow/non-moving items, ordering based on usage, and continuing good turnover ratio.

1. A STUDY ON ‘INVENTORY MANAGEMENT’
WITH REFERENCE TO FAIRFIELD BY MARRIOTT
VISAKHAPATNAM
Under the esteemed guidance of
Mrs.Y.L. HIMA BINDU
SUBMITTED BY
T. ASHA KEERTHI

2. CONTENTS
• TOPIC
• INDUSTRY PROFILE
• ORGANISATION PROFILE
• OBJECTIVES
• METHADOLOGY
• FINDINGS
• SUGGESTIONS

3. INVENTORY MANAGEMENT
• Inventory management occupies the most significant position in the structure of working capital.
Management of inventory may be defined as the sum of total of those activities necessary for the
acquisition, storage, disposal or use of materials. Inventory is one of the important components of
current assets. Inventory management is an important area of working capital management, which
plays a crucial role in economic operation of the firm. Maintenance of large size of inventories requires
a considerable amount of funds to be invested on them. Efficient and effective inventory management
is necessary in order to avoid unnecessary and inadequate investment.

4. HOSPITALITY INDUSTRY
The Hospitality Industry is a large sub section within the service industry and it is
comprised of four main areas:
Food and beverage, travel and tourism, lodging, recreation as examples, the F&B
category includes restaurants, bars and food trucks. Travel tourism covers different
forms of transportation and travel agencies, lodging varies from hotel resorts to
hotels[,recreation refers to leisure activities such as sports, wellness and
entertainment. While all sectors are interdependent on each other, many of these
sectors are quickly evolving due to new technologies and changing customer mindsets.

5. MARRIOTT
INTERNATIONAL
Marriott International, Inc. is an American multinational diversified hospitality
company that manages and franchises a broad portfolio of hotels and related lodging
facilities. Founded by J. Willard Marriott, the company is now led by his son,
executive chairman Bill Marriott, and president and chief executive officer Arne
Sorenson. Marriott International is the largest hotel chain in the world by number of
available rooms. It has 30 brands with 7,484 properties in 131 countries and
territories around the world, over 1,400,693 rooms (as of June 30, 2020), including
2,104 that
are managed with 573,043 rooms 5,314 that are franchised or licensed with 812,006
rooms, and 66 that are owned or leased with 15,644 rooms, plus an additional
510,000 rooms in the development pipeline, including 230,000 that were under
construction, and an additional 28,000 rooms approved for development but not yet
under signed contracts.
It is headquartered in Bethesda, Maryland, in the Washington, D.C. metropolitan area.

6. OBJECTIVES
 To study the profile of Fairfield by Marriott.
 To understand a theoretical concept of inventory management.
 To analyze and interpret the inventory levels, inventory turnover of Fairfield by Marriott.
 To give appropriate suggestions for the improvement of inventory management in Fairfieldby
Marriott.

7. METHODOLOGY
• The methodology of collecting data is an important part of the study. The sources of data can be
divided into two parts.
 Primary Data: Information of the primary data for the study is collected by personal interaction
with the executives and persons of various levels who are involved the inventory management of
Marriott Visakhapatnam.
 Secondary Data: The secondary data has been collected from the annual reports of Marriott
Visakhapatnam. The data required for the study is also collected from magazines, newspapers and
Internet.

8. FINDINGS
 From ABC Analysis, I found that there is an increment in value of inventory usage yearly. Where there is less inventory usage
in the year 2019-20 from all category items when compared with previous years ABC category items. Where as in next
financial year 2020-21 the value of inventory usage has increased and this year is the highest value inventory usage in ABC
analysis when compared to the previous years. This shows the good performance in inventory in ABC category items.
 In ABC analysis the performance of C category items has gradually increased in all years when compared with A category and
B category items. Whereas A category and B category items performance is increased from the financial years 2018-19 to
2019-20 and falls down in the financial year 2020-21. And for the next financial year their performance went too increased.
 In FSN Analysis, most of the goods show fast moving, it says there is a good performance in inventory. Whereas less
percentage of items shown slow moving and non-moving goods.
•

9. SUGGESTIONS
 Consumption of items for ABC category items should plan to increase gradually for every year.
 The company should focus on the slow moving and non-moving items. So that they maintain limited stock depend on
its usage. So wastage of items gets reduced.
 Placing of orders for items should be done depends upon its usage. So it can reduce amount spend on unnecessary
items.
 The company has a good inventory turnover ratio and it indicates that the company has a proper control on inventory. It
must be continue for the further years also.
 The company should adopt sophisticated techniques in some areas rather than traditional techniques to manage its
inventory in a more efficient manner.

10. THANK YOU