FINDINGS:

1. It is important to study the size of Inventory Management of any enterprise. It decides the need
for best owing attention in the management of this component. In the enterprise under the
study Inventory formed a major percentage of total assets. It varied between the lowest of 55
percent and the highest of 60 percent to total assets.
2. The composition of current assets is dominated by inventory and receivable in 2001-02 the
composition of current assets are dominated by inventory and other current assets.
3. The inventory index and growth rate of KDMPMACUL is so even for instance the annual
growth of KDMPMACUL is negative.
4. The receivable index in KDMPMACUL is highly uneven. In some year it is highly positive
and in some year it is negative. The unevenness is not good.
5. Some of the inventories are ordered on the basis of minimum stock or reorder level.
6. There is no particular method has been followed for valuing the particular type of inventories.
Fast Moving stocks.
Slow Moving stocks.
Seasonal stocks.
Vital Items.

A valuation at inventories is entirely based on both manual valuation and computer valuation.

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SUGGESTIONS:
a. A plan should be drawn to use the surplus milk in some seasons for the manufacturers
of long-lived bi-products.
b. The company should introduce continuous stock verification system for all the
materials.
c. The company should introduce some of the major inventory classification methods like
XYZ analysis and FSN analysis for better control of inventories.
d. The composition of current assets is dominated by inventory and other current assets in
this regard it is advised to the company to maintain a balance among the different
components of current assets.
e. It is better to start own manufacturing unit for materials like which has monopoly
supplier, so that Ordering Cost and Carrying Costs reduce and can have materials in
time.

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