Summer Internship Project

Understanding the Supply Chain Network of

Outlook India both
National and International

(A Project with Outlook Group India)

Submitted in partial fulfillment of the requirements for

Post Graduate Diploma in

Management (PGDM)

Academic Year: 2021

Submitted By

Saurabh Shah
Div B Roll No. 107
PGDM
Batch: 2020-2022

i
 Declaration

I hereby declare that this project report titled “Understanding the Supply Chain
network of Outlook India both National and International”, submitted in
partial fulfilment for the award of the requirement of Post Graduate Diploma
Management to Chetana’s Institute of Management and Research, is my original
work and not submitted for award of any degree or diploma fellowship or for
similar title or prize. References of work and related sources of information have
been duly acknowledged in the report. The project has been carried out under the
guidance of Dr. Kamlesh Tiku Sir. I further declare that I have no objection and grant
the rights to Chetana’s Institute of Management and Research to publish any
chapter/project or use it for future reference if they deem fit.

Place: Mumbai

Date: 16th July, 2021

Name: Saurabh Shah

Class: PGDM Batch 2020-22

Division- B Roll No. – 107

ii
 Certificate
This is to certify that the project submitted in partial fulfillment for the award of Post Graduate
Diploma in Management of Chetana’s Institute of Management and Research is a result of the
bonafide research work carried out by Saurabh Atul Shah under our supervision and
guidance, no part of this report has been submitted for award of any other degree, diploma,
fellowship or other similar titles or prizes. The work has also not been published in any
Journals/Magazines.

Date:
Place: Mumbai

Dr. Kamlesh Tiku Dr. Madhumita Patil

Associate Professor I/C Director
Faculty Guide CIMR

iii
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 ACKNOWLEDGEMENT

I want to thank Dr. Kamlesh Tiku sir under whose guidance I have carried out this project. I
am thankful to him for helping me out with the research part in particular and the overall project
in general. The Research Methodology classes taught by him was one of the essential
knowledge that was required to complete this project.

I want to thank all my Professors who taught me in first year. Because the Summer Internship
required knowledge from all the field to be implemented specially Marketing, Sales and
Operations.

I want to thank my Corporate Guide from Outlook Group, Mrs. Sadhana Tiwari who guided
me throughout the course of the Internship and explained me various strategies to pitch my
product and meet my target. He provided me insightful knowledge about sales and operational
strategies Management which was then a relatively new topic for me.

I would also like to thank my Team Leader Mrs. Sadhana Tiwari who kept me motivated even
during the times when I was not getting sales. She helped me with the market research part and
helped me in designing proposals in the initial stage.

Last but not the least I would like to thank the respondents without whose responses I wouldn’t
have been able to carry out my research part.

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 Table of Content

Chapter Content Page No.

No.

1. Executive Summary 1
2. Introduction
2.1 About the Company
2.1.1 Mission and Vision of Outlook 2
2.1.2 Product Portfolio of Outlook Magazine 3
2.1.3 Outlook Supply Chain 4
2.1.4 SWOT Analysis 6
2.2 Sector Details
2.2.1 Printing Details 7
2.2.2 Recent Developments in Print Industries 8
2.2.3 Foreign Investment in Indian Print Media 9
3. Task, Analysis and Findings
3.1 Sales Task 10
3.2 Relationship between customer and Manufacturer 12
3.3 Make OR Buy Decision 12
3.4 Supply Chain design 13
3.5 Aggregate task 14
3.6 Outlook Operational Strategies 18
3.7 Economic Order Quantity 20
4. Supply Chain Network 21
5. Conclusion and Recommendation 23
6. References 24

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1) Executive Summary –

In this project first I have analysed the print media industry at the initial stage. Then I have tried to study
the market with respect to Outlook Group and the various strategies it undertakes. Studying a market
leader`s strategy is very important from the angle of understanding sales and marketing.
In the next level we were allotted different task. In First task we have to Implement the Product Process
Matrix and formulate a sound purchasing and supply strategy. Objective of this task is to understand how
to formulate strategies. Then we have to design the various elements of supply chain network. Then by
understanding the Aggregate Planning we have to implement different strategies to find out which is better
suited. Objective of this task is to understand how to implement the strategies. Then we have to perform
4V Analysis with respect to final product and prepare the Operation Strategy Matrix. Objective of this task
is to understand and find information and research comes after performing this analysis and matrix. Then
we have to solve the industry related problem regarding Economic Order Quantity. And find out different
aspects of the economic order quantity. Objective of this is to understanding about how Inventory
Management work in practical world. As a project I studied and understand the existing Supply Chain
network of outlook India. Where we understand detailed supply chain network and understand how it works
and distributed all over India.

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2 Introduction
2.1 About The Company –
2.1.1 MISSION AND VISION OF OUTLOOK
MISSION

⮚ To deliver superior value to our customers, Shareholders, employees, and society at large
⮚ Build a dynamic team of committed and passionate employees through sustained learning and
grooming.
⮚ Develop mutually beneficial relationships with our business partners.
⮚ Employ cost-effective processes and therebycreate a strong organization.

VISION
⮚ To be a premium global conglomerate with a clear focus on the business

VALUES
⮚ Integrity
⮚ Teamwork
⮚ High Achievement

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2.1.2 PRODUCT PORTFOLIO OUTLOOK MAGAZINE
Weekly Outlook
This is a weekly publication that covers sports, lifestyle, national and international news, politics, and other
topics. This can be regarded as a weekly newspaper's replacement. Generally, 9-to-6 employees do not have
enough time to read the newspaper. As a result, this magazine can be tailored to them, and it can be read
over the weekend.
Money Predictions
This is India's and the world's best money magazine. It is published every two weeks and is aimed mostly
at investors.
Traveller's Outlook:
It's a travel publication for people who enjoy seeing new destinations, staying in new hotels, and trying new
cuisines. It gives an in-depth analysis of the locations, restaurants, and motels. It's a monthly subscription
service.
Hindi Outlook:
It is a fortnightly magazine that covers all the news in the same way as a weekly magazine does, but in
Hindi.
Business Prospects:
It's one of the greatest corporate magazines on the market, and it can be targeted at companies or
businesspeople.

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2.1.3 Outlook's supply chain –
 Outlook's efficient and responsive supply chain is one of its mail propositions. The
Weekly magazine is printed on Fridays and shipped overnight by air to Tier 1 and
Tier 2 cities so that prospects can get their hands on them on Saturday.

 This is one of Outlook's primary selling points and an area where it competes with
other brands.

 Kolkata, Chennai, Bangalore, Hyderabad, Delhi, NCR, Lucknow, Chandigarh,

Ahmedabad, Pune, and Mumbai are among India's top 10 metros.

 Even remote areas have access to Outlook. Courier services are used to deliver it
to the prospect. They also now offer courier businesses contracts to complete the
job solely with Outlook.

 This enables Outlook to effectively and responsively cover distribution across

India, ensuring on-time delivery.

Knowledge Jockey –
 Knowledge Jockey is used to keep track of how many sales are made and how
many leads are generated. It outlines the conversions that were successful and
those that were not.

 It's also automated with gemstone crm software, and it sends out automated emails
to the prospects who didn't sign up. All of the supervisors in Outlook, as well as
the interns on the job, have a Kj account.

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 The account contains all of the information about the employee's work as well as
his sales figures. It also determines how much of an incentive the employee will
receive from the sales he generates.

 From the perspective of the employee, this software is highly valuable because it
keeps track of all of his activities.

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2.1.4 SWOT Analysis –

Strengths –
1) Established brand image.
2) Among the top three magazine in India.
3) Multi Channel Presence
4) Distribution Channel
5) Human Resource

Weakness –
1) Depend on 3rd Party Logistics.
2) Penetration into rural market is not valuable
3) Market Segment has saturated.

Opportunities –
1) New Geographical Market.
2) Increase customer retention

Threats –
1) Young generation not so much inclined towards print media.
2) Digital Media offering free updates and contents.

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2.2 Sector Details
2.2.1 Printing's History
An edition of a written book was created in classical times by having it duplicated by
scribes, usually literate slaves who were dedicated solely to that task.
Due to the availability of slave labour, editions of up to several thousand copies of a poem
or history were possible, each written by hand on a papyrus or parchment scroll, with the
cost of each being determined by the value of the scribe's time.
The first extant evidence of language-related printing originates from the seventeenth
century b.c. On Crete, the Phaistos disc contains over a hundred pictographs organised in
a spiral pattern that have never been understood.
Whether these symbols were ideographic, syllabic, or protoalphabetic, the repeated
characters are not only similar, but identical impressions formed by pressing stamps made
of an unknown material into soft clay—in effect, an example of early typewriting, but not
printing as we know it today.
The thin paper was pasted to the smoothed block of wood and a page was written by hand,
with or without illustration.
To make the reversed page visible, the paper was wet, and the sections not covered by
writing were sliced away, leaving the printing surface.
After inking the block, a sheet of paper was placed over it and strongly pressed to transfer
the ink from the wood to the paper. As a result, each page had to be carved out of a block.
The first printing press in the New World was delivered to Mexico City by the Spanish
less than half a century after Columbus' first journey.
In 1539, the press was used to publish the first book in the Americas, Breve y más
compendiosa doctrina cristiana en lengua mexicana y castellana, which translates to Brief
and Most Compendious Christian Doctrine in Mexican and Spanish (Or Castilian)
Languages.

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2.2.2 Recent Developments in Print Industries –

Forbes India, a joint venture of Network18 and Forbes Media, was established in May
2009.
'Open,' a weekly magazine published by RPG Group, is aimed at sophisticated Indian
readers who are well-informed, well-traveled, and consider themselves global citizens.
There are 12 cities where you may get it.
Professional 360, a monthly publication focused on career advice, was Pathfinder
Publishing's first title.
MIT's Technology Review magazine and CyberMedia India Ltd collaborated to launch
Technology Review in India.
Harper's Bazaar, a fashion and beauty publication published by the Hearst Corporation in
collaboration with India Today.
The Caravann, a fortnightly magazine published by Delhi Press and covering politics,
culture, the arts, and literature, has been relaunched.
FNL and Salon and Living etc., an Indian edition of international homes magazine, are
both owned by the Images Group.
What Women Want, a woman's magazine for women aged 20 to 45, and 'Lifestyle Living,'
a lifestyle magazine for individuals with a passion for the outdoors, are two publications
published by Gill India Communications.
With the recent debut of BBC's Lonely Planet magazine, the trend of foreign magazines
launching India editions is projected to continue in 2010.

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2.2.3 Foreign Investment in Indian Print Media
India's economic liberalisation movement, which began more than a decade ago, has
progressed once more with the opening of the print media sector.
With the UPA's landslide victory in the Lok Sabha elections, the media business gained
an open-minded Information and Broadcast Minister in Ambika Soni, who has provided
encouraging signals to the industry.
The government had previously approved an increase in International Direct Investment
(FDI) in facsimile editions of foreign publications in 2009. The government also stated
that newsprint would be exempt from customs duties.
The Indian government announced a set of guidelines in December 2008 that would allow
Indian editions of foreign news and current affairs magazines to receive 26% FDI as long
as the key executives and editorial personnel are Indian.
The Ministry of Information and Broadcasting has approved the publication of facsimile
editions of foreign newspapers in India for the first time, allowing 'The Wall Street Journal'
and 'The Wall Street Journal Asia' to do so.
These publications would be published by Wall Street Journal India Publishing Pvt Ltd,
a wholly owned subsidiary of Dow Jones & Company Inc. The government has announced
that the newspaper and magazine publishing industries will be free from customs duties
on newsprint.
These concessions were made in February 2009 in response to the slowing economy and
rising newsprint costs, which had risen by about 25%.

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3 Task, Analysis and Findings
3.1 Sales Task –
Learnings from Sales task

• Making a sale, regardless of the situation, is entirely dependent on the

salesperson's ability to persuade.

• Following up on any leads provided does not always result in a sale.

• In addition to the customer's purchasing capacity and interest, the current

economic climate has a significant effect in choosing a purchase.

• It's critical to explain to the buyer how the purchase will benefit him and how
he will benefit if he makes the purchase as soon as possible.

• The customer's perception of the firm is important in influencing the sale.

• Although not everyone we approach for a sale would speak politely, we should
be courteous and manage them gently.

• Getting the first sale can take a long time and may necessitate a strategy
adjustment.

• Total Sales – Rs. 13,100

• Number of Subscription sold – 20 Subscriptions

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Supply Chain –
Supply chain management is steps of joining the supply demand management, in the
organization and channels in the supply chain so they work together in coordination with
each other.
There are five basic components in a supply chain management system –
1. Planning
2. Sourcing
3. Making
4. Delivering
5. Returning

Elements of Supply Chain Consider –

1) Raw Material 5) Machinery
2) Purchase 6) Transportation
3) Scheduling 7) Labour
4) Printing 8) Warehouse

Product Process Matrix

High Volume
Raw Material
Weekly
Purchase
Magazine
Transportation
Labour
Multiple Product Single
Product

Machinery

Transportation

Low Volume

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3.2 Relationships between Customer and Manufacturer
One Way Relationship –
1) Raw material from vendor to printing press
2) Printed Magazine from printing press to airports and railway station.
3) Magazine from Railway station and airports to different country stations and ports.
4) Magazine from stations to different states.
5) Magazine to different Courier Services.
6) From Courier services to Customers.

Two way Relationship –

1) From Courier services to Customers and again to courier services. (In case of
replacement)
2) From Local branches to courier services and again to Local Services. (In case of
replacement)
3) From Company to Local Branch and again to Main Company. (In case of replacement)

3.3 Make and Buy Decision –

Functions should own by company –

1) Printing own magazine (It will save cost).
2) Transportation from raw material vendor to printing press and from printing press to
Warehouse.
3) Proofreading by own employees or selected customer.

Functions should outsources –

1) Warehouse Agency (Third party will only focus on work)
2) Connect with service industry to transport to airport and transport from warehouse.
3) Courier services for local magazine distribution.

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3.4 Supply Chain Element design –

Paper & Pulp

Industry

Printing Production
Press

Warehouse

Airports, Ports and

Railway Station District and
Regions
Different
Courier
States/
Services Local Courier
Branches
services

Consumers

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3.5 Aggregate Task
Month Expected Production Demand per
Demand Days day
Jan 900 22 41
Feb 700 18 39
Mar 800 21 38
Apr 1200 21 57
May 1500 22 68
June 1100 20 55
Total 6200 124
Demand = 6200/124
= 50 Units per day.
1) Level Strategy –
Mont Producti Producti Deman Month Ending
h on Days on at 50 d ly Invento
Units/Da Foreca Chang ry
y st e
Jan 22 22 X 50 = 900 200 200
1100
Feb 18 900 700 200 400
Mar 21 1050 800 250 650
Apr 21 1050 1200 -150 500
May 22 1100 1500 -400 100
June 20 1000 1100 -100 0
1850

Therefore,
Number of workers to produce 50 units per day
If 1 Unit = 1.6 Hours………… (Given
Then X = 8 Hours X =?
Therefore X = 5 units in 8 hours.
So, 50/5 = 10Workers.

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Now,
Inventory Carrying Cost = 1850 X 5 = 9250
Regular Time Labour = 10 X 40 X 124 = 49600
Total Cost of Plan = Inventory Carrying Cost + Regular Time Labour
= 9250 + 49600
= 58850
So Total Cost of Plan by using Level Strategy is 58850 Rs.

2) Mixed Strategy –
Month Expected Production Demand per
Demand Days day
Jan 900 22 41
Feb 700 18 39
Mar 800 21 38
Apr 1200 21 57
May 1500 22 68
June 1100 20 55
Total 6200 124

I) In-house Production –
= 38 (Lowest among all months) X 124 = 4712
II) Number of Sub Contracting Units –
= 6200 – 4712 = 1488.
III) Regular time labour cost –
= 40 X 124 X 7.6 =37696
IV) Sub Contracting Cost –
= 1488 X 10 = 14880
V) Total Cost of Plan –
= Regular time Labour Cost + Sub Contracting Cost

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 = 37696 + 14880
= 52576
So Total Cost of Plan by using Mixed Strategy is 52576 Rs

3) Chase Strategy –
Month Expected Production Demand per
Demand Days day
Jan 900 22 41
Feb 700 18 39
Mar 800 21 38
Apr 1200 21 57
May 1500 22 68
June 1100 20 55
Total 6200 124

M Expe Daily Basic Increasing Decreasing

on cted Prod Production Production Production
th Dema rate Cost Cost Cost
nd
Ja 900 41 7200
n
Fe 700 39 5600 (2 X 600)
b = 1200
M 800 38 6400 (1 X 600)
ar = 600
Ap 1200 57 9600 (19X300)
r = 5700
M 1500 68 12000 (11X300)
ay = 3300
Ju 1100 55 8800 (13 X 600)
ne = 7800
To 6200 49600 9000 9600
tal

Basic Production Cost = Demand X Labour hour X Pay Rate

Where,
Basic Production Cost is 49600
Increased Production Cost is 9000

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Decreasing Production Cost is 9600
And Total Cost of Production is
= Basic Production Cost + Increased Production Cost + Decreased Production Cost
= 49600 + 9000 + 9600
= 68200
So Total Cost of Plan by using Chase Strategy is 68200 Rs.
From all the cost of Plans Mixed Strategy has lowest cost that is 52576 so we can
select Mixed Strategy.

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3.6 Outlook Operational Strategies –
Operational decision –
1) Control over Intellectual Property – Creative design and content making takes place in
editorial offices and is managed in-house.
2) Control over Consumer Insights – Market research is performed in-house.
3) Strategic Investments in Suppliers – Outlook strategically invests capital with suppliers
in order to reserve and assure production capacity.
4) Rigid Planning Process Variability in product demand for the magazine is inherent.
Outlook carefully manages is supply chain resources to match demand with supply.
Production capacity is flexible to meet surges in demand.
5) A Focus on High-Valued-Added Work – The research and analysis by Outlook is the
best in the market.

Operation Strategy –
I) Innovation is the key. Sales spikes with season.
II) Limited investment on fixed cost.
III) Asset light and working capital light.
IV) Supplier`s finance goods.

Corporate Strategy –
I) Focus: Innovation, NPD and brand management.
II) Frequent introduction of new magazines and features on existing magazines
III) Product breadth
IV) High quality and reliable products
V) Customers loyal to the brand

Retail Strategy –
I) multiple channels: authorized, dealers, online, vendors
II) Retail stores:
III) Highly uncertain demand

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IV) Supplier code of conduct

Supply Strategy –
I) Dominant buyer – purchases most or all of supplier capacity to shut out competition
II) Makes investments in suppliers to assure they use the latest technology
III) Builds flexibility into the supply chain to respond to surges in demand

Distribution Strategy –
I) Outsourced
II) Purchases capacity in advance
III) Uses (expensive) airfreight to speed

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3.7 Economic Order Quantity –
Economic Order Quantity is a phenomenon in which we find out order quantity that aims
to reduce setup cost and carrying cost.
To reduce the setup cost and holding cost, we have to use optimum quantity of items that
should be ordered.
It is calculated as EOQ = (√2DS/H)
Where,
D = Demand of the Product.
S = Setup Cost/Ordering Cost
H = Holding Cost/ Carrying Cost.

For Example –
Demand is 75 Lakhs per year
Setup Cost and Holding Cost per unit is 29 and 35 respectively.
Printing is done in 300 days and 2 days for delivery.
No. of pieces in order include 2.3 lakhs
Answer –
Number of Orders = 7500000/230000 = 33
I) EOQ = (√2DS/H)
= (√2 X 7500000 X 29 / 35)
= 3525 Quantity

II) Annual Setup Cost = Annual Demand X Setup Cost / EOQ

= 7500000 X 29 / 3525
= 61702

III) Annual Holding Cost = Annual Demand X Holding Cost / EOQ

= 7500000 X 35 / 3525
= 74468

IV) Reorder Point = 7500000 X 2 / 300

= 50000

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4 Supply Chain Network –

 Print order released by sales team for production team. Once print order is released
by sales team then production team comes into picture.
 Paper is imported and received at Mumbai airport. They don’t directly import
papers, they buy it from local importers since they give them good credit period
for payments. If they directly import, they need an import license and payment
terms are also strict.
 Then Production team analyses the print order and send it to printing press. After
receiving order from sales team first task of production team is to analyses the print
orders, check all the parameters and forward it to printing press.
 Printing Press prints the magazine as per quantity. Once order receive from
production team press starts printing magazine as per given requirement using their
all resources and machines in given specific time.
 Printing team packages the magazine as per the given brief by dispatch team. After
printing all the magazines all the magazines are properly packed according to the
safety and travelling of the parcel and then send to dispatch team.
 Dispatch team dispatches the magazines to various cities as per dispatch plan. After
packaging all magazines are dispatch to various cities through various
transportation methods as per dispatch schedule.
 Then Circular team distribute the products to the distributors in cites. After
dispatching, through local providers magazines are distributed.
 Distributors gives products to agents and retailers for selling to end consumer.
Magazine are provided to end consumers via agents and retailers.
 Trains and local transport is used for dispatching the products. Demand
Forecasting gives trend analysis and market feedback.
 Business model – Mostly revenue is based on advertising. Post covid digital and
event sales has been increased
 Magazines are sold through 2 different models – Open Market – it uses news stand
includes retail shops and book stores etc. and other one is Subscription model.

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 Now for India they use supply chain –
 Printing Press – Dispatch Area – Warehouse – Railway Station, Airport and Ports
– Courier Services – Different States – Different Branches – Different Districts –
Different Locations in cities and villages – either to stalls newspaper stall and retail
shops or directly to consumer door step
 And for International Clients –
 Printing Press – Dispatch Area – Warehouse – Railway Station, Airport and Ports
– Different Countries – Different Warehouses – Courier Services – Different
States – Different Branches – Different Districts – Different Locations in cities and
villages – either to stalls newspaper stall and retail shops or directly to consumer
door step

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5 Conclusion and Recommendations

1) This project was performed to understand the Supply Chain Network and how print
media companies carries out Supply Chain Strategies in order to complete the delivery.
2) In print media industry, the information and content has to be pure and accurate that
will help to retail customer.
3) Having a good prominent and effective supply chain plus point for any print media after
all the main aim of print media is to reach their content at each and every customer.
4) Very accurate coordination is required in supply chain network especially in outside
countries between all the distributors and other helping people.
5) For sales task, very good communication skills and convincing skills are required to
sell the products especially magazine among the youth as they are more diverted towards
digital platforms.
6) Also strategies like product penetration, segmentation and problem solving skills are
required for all types of operations including sales and operations.
7) Some recommendations like, in areas which are near villages or difficult to reach easily,
magazines are delivered very late. So this time can be reduced by applying some different
strategies.
8) Also Magazines in areas like Food, Sports and Science can be started to increase and
expand product portfolio.

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6 References
1) https://www.arcgate.com/blogs/indian-magazine-market-overview
2) https://www.managementstudyguide.com/aggregate-planning.htm
3) https://www.outlookindia.com/
4) https://smallbusiness.chron.com/swot-analysis-media-industries-69805.html
5) https://www.investopedia.com/ask/answers/052715/how-economic-order-quantity-
model-used-inventory-management.asp
6) https://www.youtube.com/watch?v=17ln19acbx4
7) https://corporatefinanceinstitute.com/resources/knowledge/strategy/supply-chain/

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