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Al-Ghazi Tractors Limited was incorporated on June 26, 1983 at Lahore. The area of factory, at D.G.Khan, is 100 acres approximately. It uses the product design of “FIAT” of Italy. The main purpose of the company is assembling and distributing of Fiat Tractors. They assemble two models of tractors i.e.

480-S and 640. The depletion rate of 480 is 85% and 640 are 76%. Forecasting entirely depends upon the marketing department. Previously 98% of sales were made by contract with ADBP but now it is carried out on net cash payment basis. Because delivery through ADBP has been stopped.

Highway method is used for transportation purpose. To reduce inventory level they adopt safety stock method. They have different lead-time for different suppliers. Al-Ghazi Tractors Limited also use ABC analysis for managing inventory. Al-Ghazi Tractors Limited has a separate quality control department. The laboratory is well equipped to undertake chemical and mechanical testing of metals.

Al-Ghazi Tractors Limited has received the ISO 9002 Certificate.