EXECUTIVE SUMMARY

Every enterprise needs inventory for smooth running of its activities. Inventory is composed of
raw materials, semi-finished goods, finished goods; space and components. Each of this serves
specific purpose. The raw materials are converted into semi-finished goods and finished goods in
manufacturing process.

The efficient management of inventory is necessary to ensure that the sufficient quantity of
inventory is available for the production and also to see that there is neither under stocking nor
over stocking of inventory.

Hence the study “Inventory Management” at Yuken India ltd has been taken in order to know the
purchase procedure, inventory management and control techniques adopted in the company.

The objective of the study is to study the effectiveness of inventory management, to analyze the
functions, procedures in inventory management and control, to understand method of valuation
of inventory and the inventory control techniques adopted in Yuken India ltd.

It was found that the entire documentation inventory department in the company is
computerized. Material planning is done based on order obtained from different customer. The
received materials are inspected as per standard plan and finished products are tested 100%
based on material released. They are maintained and handled properly. Physical verification of
high value materials in holding store is conducted in accordance with predetermined programs.
FIFO Method is followed at the time of issue of material. At present the stock of raw materials
composes of 80%, semi-finished consists15%, and finished goods comprises of 5% of the total
inventory.

The project helped in understanding the actual situation prevailing in the organization. From the
study we can say that Yuken India ltd is so for adopting the inventory control techniques in the
organization. It is trying to implement modern concept and technology of inventory system for
controlling the inventories and managing the funds effectively. This helps the company to
achieve its goal.