A

SYNOPSIS ON

“INVENTORY MANAGEMENT”
AT

“HERITAGE FOODS INDIA LIMITED”

Submitted in partial fulfillment of the requirement for the award of the

MASTER OF BUSINESS ADMINISTRATION

BY
MADDILA SAI CHAITANYA RAO
H.T NO: 1422-20-672-006

Department of management studies

CSI INSTITUTE FOR P.G. STUDIES
(Affiliated to Osmania University)
East marredpally, secunderabad, telengana
2020-2022
1. INTRODUCTION
Inventory control is vitally important to almost every type of business, whether product or
service oriented. Inventory control touches almost every facets if operations. A proper
balance must be struck to maintain proper inventory with the minimum financial impact on
the customer. Inventory control is the activities that maintain stock keeping items at desired
levels. In manufacturing since the focus is on physical product, inventory control focus on
material control.
“Inventory” means physical stock of goods, which is kept in hands for smooth and efficient
running of future affairs of an organization at the minimum cost of funds blocked in
inventories. The fundamental reason for carrying inventory is that it is physically impossible
and economically impractical for each stock item to arrive exactly where it is needed, exactly
when it is needed.
Inventory management is the integrated functioning of an organization dealing with supply of
materials and allied activities in order to achieve the maximum co-ordination and optimum
expenditure on materials. Inventory control is the most important function of inventory
management and it forms the nerve center in any inventory management organization. An
Inventory Management System is an essential element in an organization. It is comprised of a
series of processes, which provide an assessment of the organization’s inventory.
2. NEED OF THE STUDY
Materials are equivalent to cash and they make up an important part of the total cost. It is
essential that materials should be properly safeguarded and correctly accounted. Proper
control of material can make a substantial contribution to the efficiency of a business.
The success of a business concern largely depends upon efficient purchasing, storage,
consumption and accounting.
 The cost of production is increased recently due to the wide usage of HERITAGE
FOODS INDIA LIMITED company products.
 As requirement of raw material is increased there is a need for the effective
maintenance of inventory management.
"For every industry the Inventory plays a vital role". Better Inventory control leads to better
capital usage .The Company should look after the Inventory effectively which results in
optimum level of raw materials & finished goods that will smooth in production process.
"Inventory plays a vital role. Hence the study of inventory management in HERITAGE
FOODS INDIA LIMITED has been selected for the project work".

3. SCOPE OF THE STUDY

 The study is done on inventories held by manufacturing division of HERITAGE
FOODS INDIA LIMITED The scope of the study includes the abc Analysis of Raw
Materials, wip and Finished Goods for five financial years.
 This study provides insight to the management of High Value items and also brings
attention of management towards movement of ‘A’ class items over period of 5 years.
 The study also covers other areas like the financial ratios for the period of 2017 to
2021.
4. OBJECTIVES OF THE STUDY
 To study on the stocking level of the company that is minimum level, maximum level &
re- ordering level.
 To know whether the company is facing any stock outs recently.
 To review the abc Analysis and understand the impact of business dynamics on inventory.
 To make a brief study on the analysis of the store items.

5. HYPOTHESIS

The importance of hypothesis in any research work as this cannot be overemphasized. It is

carried out on the basis of the hypothesis the researcher has formulated. Based on the
problems being investigated.
Answering from the stated objective of the study, the researcher hypothesized thus:
HO: Null hypothesis – The inventories are well managed and this has resulted to highly profit
in HERITAGE FOODS INDIA LIMITED.
HI: Alternative hypothesis – The inventories are not well managed and this has resulted to
low profit in HERITAGE FOODS INDIA LIMITED.
HO: Null Hypothesis – Introduction of efficient inventory Management and control system
aid sales in HERITAGE FOODS INDIA LIMITED.
HI: Alternative Hypothesis – Efficient inventory Management and control System will not
aid sales in HERITAGE FOODS INDIA LIMITED.
HO: Problems of stock out production break, loss of sales, excess stock holding occur in
HERITAGE FOODS INDIA LIMITED because of absence of inventory Management and
control.
HI: Problems of stock outs, production break, loss of sales, excess stock holding in
HERITAGE FOODS INDIA LIMITED are not attributed to the absence of inventory
Management and control.
6. LIMITATIONS OF THE STUDY:
 Since the study covers only Manufacturing division of the company, it may not
represent the overall scenario of the company.
 Project duration of time is not sufficient.
 One of the factors are the study was the lack of availability of sample information.
 The information is mostly depended upon secondary data.
 Main limitation is due to their busy schedule the employees in the organization are
unable to spend their time with me.
BIBLIOGRAPHY
BOOKS:
Financial Management………. I.M. Pandey
Financial Management………. Prasanna Chandra
Financial Management………. Van Horn
Management Accounting and Control…. S.N.Maheswari
Financial Management……….Khan and Jain
JOURNALS:
 Berialtoktay ,inventory management of re manufacturable of products , management
science
 Rachel Q , inventory management with asset-based financing , management science
 Donald G, Bauer , inventory management system , us patent
 David simcha- levipengsun , risk aversion in inventory management , operation
management
 David simcha- levipeng sun -managing carbon foot prints in inventory management ,
international journal of production economies
WEBSITE:
www.ultratech.com
www.financial management.com
www.pricipals of accounting.com
www.google.com