SYNOPSIS

 Student Name : BASAVARAJ RAMPUR

 Reg, No : 19C01572

 Title of the project : A STUDY ON INVENTORY MANAGEMENT

 Company Name : CHANNAMMA BAJAJ BIKE SHOWROOM.

INTRODUCTION
A term inventory refers to the stock file of the products a firm is offering for sale and the
components that make up the product. In other words, inventory is composed of assets that
will be showed in future in the normal course of the business operations. The assets which
firms store as inventory in anticipation of need are:

 Raw materials
 Work in process (Semi Finished goods)
 Finished goods

The raw material inventory contains item that are purchased by the firm from other and are
converted into finished goods through the manufacturing (production) process. They are an
important input of the final product. The working process inventory consists of items
currently being used in the production process.

They are normally semi finished goods that are at various stages of production in a multi
stage production process. A finished goods represented final or completed products which are
available for sale. The inventory of such goods consists of items that have been produced but
are yet be sold. Inventory, as a current asset, differs from other current assets because only
financial managers are not involved. Rather all the financial areas, finance, marketing,
production, and purchasing are involved. The views concerning the appropriate level of
inventory would differ among the different functional areas.

OBJECTIVE OF THE STUDY

  It helps company to keep inventory at sufficiently high level to perform production
and sales smoothly.
 It helps to minimize investment in inventory at minimum level to maximize
profitability of the company.
 It helps to keep investment in inventory at optimum level of the company.
 It helps to reduce the losses of theft and wastage etc of the company.
 It helps to make arrangement for sale of slow moving items of the company.

NEED FOR THE STUDY

TRANSACTION MOTIVE: This refers to the need of maintaining inventory to facilitate

smooth production and sales operation.

PRECAUTIONARY MOTIVE: Precautionary motive for holding inventory to provide a

safeguard when then actual level of activity is differ than anticipated. This inventory serves
when there is a unpredictable changes in the demand and supply forces.

SPECULATIVE MOTIVE: This motive influences the decision to increase or decrease the
levels of inventory to take the advantage of price fluctuations.

SCOPE FOR THE STUDY

Inventory management is a simple concept-don’t have too much stock and don’t have too
little. Since there can be a substantial costs involved in staying above and below the optimal
range, careful inventory management can make a huge difference in the right balance can be
quite a complex and time consuming task without the right technology.

Inventory management is very important for the company. It enables the business to meet or
exceed expectations of the customers by making the products readily available.

The scope of the study includes the Analysis of Raw Materials, Work in Progress and
finished goods for four financial years.
RESEARCH METHODOLOGY

Primary Data:

The Data collected for specific purpose for first time in original now as primary data. The
primary data is basically collected by observation method. It is collected through the
interaction with senior manager and bank staff.

Secondary Data:

It was collected mainly from various sources which includes financial journals, other
published textbooks, and various websites and competitive balance sheets. Interpretations of
the result have been done on graphical representation through graphs and charts.

LIMITATION OF THE STUDY

 Some of the information was kept confidential by the stores department.

 Study was confined only to the selected components in the stores department.
 The control of inventories is complex because of the many functions it performs. It
should be viewed as shared responsibilities.