06-03-2013, 01:11 PM
A DESERTATION PROJECT ON INVENTORY MANAGEMENT AT TULSYAN NEC LTD. BANGAORE
A DESERTATION PROJECT.doc (Size: 154 KB / Downloads: 24)
INTRODUCTION OF INVENTORY MANAGEMENT
Inventory management is the act of determining how much inventory or a product or products a company must have in stock in order to meet consumer demands. Successful inventory management involves creating a purchasing plan that will ensure that items are available when they are needed (but that neither too much nor too little is purchased) and keeping track of existing inventory and its use. Two common inventory-management strategies are the just-in-time method, where companies plan to receive items as they are needed rather than maintaining high inventory levels, and materials requirement planning, which schedules material deliveries based on sales forecasts.
STATEMENT OF THE PROBLEM
The project has been dealing with an empirical study on Inventory Management at Tulsyan NEC limited based on the historical data for evaluating its contribution towards wealth maximization
OBJECTIVE OF THE STUDY
The main objective of inventory management is to maintain inventory at appropriate level to avoid excessive or shortage of inventory because both the cases are undesirable for business. Thus, management is faced with the following conflicting objectives:
• To keep inventory at sufficiently high level to perform production and sales activities smoothly.
• To minimize investment in inventory at minimum level to maximize profitability.
• To minimize carrying cost of inventory.
• To reduce the losses of theft, obsolescence & wastage etc..
• To make arrangement for sale of slow moving items.
SCOPE OF INVENTORY MANAGEMENT
• An inventory manager inspects and checks all deliveries, move stock from the stores to the production areas, and control, storage and distribution of an organization's production materials and maintenance spares.
• Inventory management is very important in order to control the in flow and out flow of the company productions, goods and assets. It will help also to determine the profit and loss of the company.