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STUDY OF Inventory Management

(with reference to Micro Turners, sidcul Pantnagar)


Submitted By UmaShankar Patel MBA(2009-11) EnRoll- 0901120527

Submitted To Mrs. Rachna Bamba FMS, Pantnagar

Inventory constitutes the most significant part of current assets of a large majority of the companies in INDIA. On an average, inventories are approximately 48%of the current assets in AUTOMOBILE COMPANIES in India. The inventory or control of inventory is just not stocking of goods but stocking the right kind of goods and balancing the uncertainty of demand and fluctuations in supply. It is worthy to note that both excessive and inadequate amount of inventory is harmful. Due to non-availability of stock, it may become difficult for the company to undertake profitable projects; thus growth may be stunted. Excessive material means unnecessary accumulation of inventories. This may increase the chances of inventory mishandling, theft, waste, it is important to maintain inventory at appropriate level so that it is neither excessive nor short of requirement perform production and sales activities smoothly and to minimize investment in inventory at minimum level to maximize profitability.

Objectives of the Study

To study and understand Inventory Management System in Micro turners. To find out the efficiency of Inventory Management System of Micro Turners To study the operational feasibility and utility of the inventory management system.

Though the project would be completed successfully a few limitations are expected. Less availability of first hand information means there is restriction of sharing internal information due to confidentiality. The research is restricted to the Micro Turners, even it can be used in other company too. Due to time constraint it is impossible to collect required information. Working of every organization is different & all theoretical concepts cannot be applied to every firm.

Research Methodology :
The word research is derived from the Latin word meaning to know. It is a systematic and a replicable process, which identifies and defines problems, within specified boundaries. It employs well-designed method to collect the data and analyses the results. It disseminates the findings to contribute to generalize able knowledge. Before, to begin any research it is necessary to select an appropriate and specific research models or research design. There are many research design and models that can be classified as followings: Exploratory Studies:- Exploratory research aims at understanding the topic being researched. Through exploratory research, one arrives at a set of questions that are to be answered in order to solve the problem or cash in on opportunity. Exploratory studies are conducted for three main reasons 1.To analyze the problem situation, 2. To evaluate the alternative, 3. To discover the new Ideas. One important thing about Exploratory research is that it can be conducted using both qualitative and quantitative techniques. The tools that are used in the exploratory research are:1. Secondary data analysis 2. Pilot study Descriptive studies:- Descriptive studies come under formal research, where the objectives are clearly defined and established. In descriptive studies, a researcher gathers details about all the aspect of the a problem situation. Irrespective of the problems complexity, it is necessary to design the research efficiently. Descriptive studies form the basis for analytical, experimental and quasi-experimental studies. Causal studies:- As the name of the study method suggests us that causal studies is to identify the cause and effect relation between variables. The

basic premise of the causal relationship is that when we do particular thing(cause), it gives rise to another thing(effect). It is highly impossible to prove a causal relationship scientifically. Researchers develop evidence to understand causal relationships. The characteristics of research presented below will be examined in greater details later are: Systematic problem solving which identifies variables and tests relationships between them, Collecting, organizing and evaluating data. Logical, so procedures can be duplicated or understood by others Empirical, so decisions are based on data collected Replicable, so others may test the findings by repeating it. Discovering new facts or verify and test old facts. For the proper analysis of data simple statistical techniques such as percentage were use.

Data Collection:After getting confirmed research method, there is a need to collect the data for further analysis. So it is also an important stage in the in the research. Data collection is done in two stages:- 1. Pre-testing 2. Main study. Pre testing involves collecting the data from small subsample to test whether the data collection plan for the main study is appropriate. This helps the researchers to minimize any potential errors( whatever the method used to collect the data, it is vary important that the data is collected without any errors. But error may creep in during data collection process in several forms that is Potential Error) that may crop up during the main study. The pretest results may also be used to decide on a way of

tabulating the collected data. If the results of a pretest are not appropriate for decision making, then the researcher may consider altering the research design. In the data collection we can adopt the following methods. Primary data studies 1. Surveys 2. Experiments 3. Observation techniques Secondary data studies

Primary Data:Primary data can be collected using many methods like surveys, experiments, and observation techniques. But, in the primary data collection method, I have adopted the method that is not fell in the methods that are exist in the primary data collection method. Primary data is collected with consultation and discussion with the concerned staff. The company whenever came to know that price has been changed for the material they decided to prepare the supplementary bills. .

Secondary Data:
Secondary data is the data that already exist which has been collected some other person or organization for their use, and is generally made available to other researchers free or a concessional rate. Source of the secondary data include websites, trade association, journals, books, news papers, case study, articles and etc.. Secondary data collection can be classified into different source. Classification of the secondary data is based on the 1. Source 2. Category 3. Medium and 4. Database.

1. According to the source secondary data can be classified as forward:

Internal External

2. According to the category the secondary data classification are:

Books and Periodicals Government Publications Non-Government Associations Directories Industry experts Special Collections

3. According to the medium we can classify the secondary data into:

Hard copy Local area online Internet

4. Now according to the database format we can classify the secondary data into

Reference Source

In the collection of the secondary data I have adopted forwarding source:

Internal source Books and Periodicals, industry experts (category) Hardcopy, local area online and Internet (Medium) Source (database format).

It was collected from the sale register. The various books helped in understanding the various theoretical concepts associated with the project such as the significance of Cash management & the way to make available cash to the company. All the

calculation is done from the data table that is derived from the sale register and ERP System of the company.

Analysis and Evaluation:In the analysis of the collected data, the exploratory and descriptive method have been adopted In the evaluation of the data, some methods that have been adopted are described forward:- quantitative, analytical and comparative method and combined of these (mathematical tool).

Nothing is complete as this is saying but it can be said that to reach to a stage where it could give someone message about inventory management and It could make someone to know why inventory management is important in any organization, It shall go through the following stage in the progress way In the first stage it took 2-3 weeks in identifying and defining the research title and sketching the objectives. During the second stage I think it will take three to four weeks so that data can be collected in accordance of the objectives that are defined in the first stage and also to make sure about the methodology to be used in the next stage. Yah this sure that after collecting the data, analysis and evaluation will fall in the research so that so that some conclusion could be derived and I think I will also consume 3-4 weeks more. After all, at the end it will take time of 1-2 weeks to derive conclusion and findings.

So now it can be said that such a research even small can consume the minimum time of the 12 weeks.

References: The books and websites referred are listed belowBooks:

Business Research Methods. ICFAI Centre for Management Research-September 2005 Financial Management.2005,The ICFAI University Press. Writing Your Thesis, Poul Oliver, Vistaar Publications, New Delhi.