Fred Hansman defined the inventory as “an idle resource of any kind, provided thatsuch resources has economic value”.2.Inventory in accounting sense may be defined as “the goods and services requiredor procured by an enterprise for the purpose of subsequent sales but not yettransferred in the hands of the customer”. – gopalakrishnan.p & M.S.SandilyaThe term inventory management involves a trade-off between cost and benefits of inventory. Ina systematic approach to inventory management, a financial manager has to identify followingimportant points.i.The items that are more important than others
The size of each order for different items.The objectives of inventory management are to determine the optimum level of inventory, andto maximise the wealth of shareholders and to minimise the cost of holding inventories.There are some risks involved in the investment on inventories. The market value of inventorymay fall below the price which was paid on the previous purchase. The market value below theearlier price causes inventory losses. To avoid the losses arising due to the change in the pricesof inventory there must be proper inventory management for all the large scale organisations
NEED AND IMPORTANCE OF RESEARCH PROBLEM:
Transport, communication and energy play an important role in the economic development of anation. Shortage of any of these basic infrastructural ingredients of development willautomatically slow down the process of progress. The modern economy cannot sustain withoutan efficient system of transport. Broadly the transport can be of two categories viz: Goods and passenger transport, passenger transport plays a vital role in the prosperity of society.The passenger bus transport has the special nature of easy operation, economical, safe,convenient, flexible and reliable service. These characteristics therefore lead to the importanceof passenger bus transport in India, particularly in view of the complexity of demographicalfeatures of the country.