CONTENTS

CHAPTER-I
 Introduction

 Need of the Study

 Objectives

 Methodology

 Limitations

CHAPTER-II
 Industry Profile & Company Profile.

CHAPTER-III
 Theoretical Frame work

CHAPTER-IV
 Analysis & Interpretation.

CHAPTER-V
 Findings

 Suggestions

 Conclusion

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BIBLOGRAPHY

ANNEXURES

CHAPTER-I
INTRODUCTION

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 INTRODUCTION

INVENTORY MANAGEMENT

Every enterprise needs inventory for smooth running of its activities it

serves as a link between production and distribution process. There is

generally, a time lag between there cognition of need and its fulfillment. The

greater the time lag, the higher requirement for inventory. It also provides a

cushion for future price fluctuations.

In a complex industry like Srimukhi Industries it studied clearly of how

the thing are being performed and what is the real impact of these on industry

and how effectively is utilized is interested to be known by researcher because

of its great significance in the research.

Meaning and Definition of Inventory Management: -

Every enterprise needs inventory for smooth running of its activities. It

serves as a link between production and distribution processes. The greater the

time lag, the higher the requirement for inventory, it also provides a caution for

future price fluctuations.-Inventory management is required at different

locations within a facility or within multiple locations of a supply network to

protect the regular and planned course of production against the random

disturbance of running out of materials or goods.

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 Involves a retailer seeking to acquire and maintain a proper merchandise

assortment while purchasing raw material, pre cleaning, post cleaning, and

related costs are kept in check. Systems and processes that identify inventory

requirements, set targets, provide replenishment techniques and report actual

and projected inventory status. Handles all functions related to the tracking and

management of material. This would include the monitoring of material moved

into and out of stockroom locations and the reconciling of the inventory

balances. Also may include ABC analysis, lot tracking, cycle counting support

etc. Management of the inventories, with the primary objective of determining,

controlling stock levels within the physical distribution function to balance the

need for product availability against the need for minimizing stock holding and

handling costs.

Inventory Management objectives

• To Find and track down all the processing data's in an inventory system
repository.
• Define a procedure by which assets are identified and maintained in the
Inventory System
• Provide all necessary personnel (data entry, update and deletion).
• Restrict access of certain members
• Complete range of reports that will satisfy informational requirements.
• To file the Inventory Management System within the Standards and
Procedures Manual.
• To provide coaching to personnel responsible for supporting the
Inventory Management System

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 The investment in inventories constitutes the most significant part of

current assets and working capital in most of the undertakings. Thus it is very

essential to have proper control and management of inventories .The purpose of

inventory management is to ensure availability of materials in sufficient

quantity as and when required and also to minimize investment in inventories.

The investment in inventory is very high in most of the undertakings engaged

in manufacturing wholesale and retail trade. The amount of investment is

sometimes more in inventory than in other asset

Need for the Study:

Every industry on average spends 70% on raw materials (inventory).

Therefore there is a need to know the raw material cost and also there is a great

importance to understand the inventory management system of this industry.

The study helps a lot to various departments to take steps to control the

inventory process. To Study the detail description of how inventory

management is being implement in companies, and analyze the effect of

inventory management in organization, and know the areas from where the

high turnover can be achieved, and to study how supply continuity can be

maintained, and to study how quality of purchases can be maintained, and to

know how cordial relations can be maintained with suppliers or not in

Srimukhi Industries.

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Objective of the Study :

• To study the basic concepts of Inventory Management.

• To portray cotton industry with special reference to Srimukhi Industry

(SMI).

• To study the theoretical frame work of Inventory Management with

reference to SMI.

• To analyse and interpret the Inventory turnover, Work in progress

turnover, Inventory to Working Capital, and Inventory holding Periods
by using ratios.

• To come up with the suggestions and recommendations on Inventory

Management.

Methodology:

The methodology of collecting data is an important part of the study.

The sources of data can be divided into two parts.

1. Primary Data: Information of the primary data for the study is collected by

personal interaction with the officers and persons of various levels who

involved the inventory management of M/s. Srimukhi Industries, Adilabad.

2. Secondary Data: The secondary data is required for the study of annual

reports published by M/s. Srimukhi Industries, Adilabad from 2000-2010.

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Limitations of the Study:

• The study is conducted with the limited data available and analysis was
done accordingly.

• The study is conducted with restricted time period (8 weeks) and

analysis made accordingly.

• The Data provided is very limited.

• Confidentiality in Account Department made some difficulties in

gathering the required information.

Chapterisation :

Chapter-I: It consists of Introduction, Need, Scope, Objectives, Methodology

and Limitations and overall design of the study.

Chapter-II : This chapter discusses the Industrial and Company Profile.

Chapter-III : This chapter consists of Theoretical Frame Work as well as

practices of the study of the concerned organization.

Chapter-IV : This chapter deals with an overview of the study and data
analysis and interpretation of the organization according to the reports of the
organization.

Chapter-V: This chapter includes overall Summary, Findings of the study,

Suggestions, Bibliography and Annexures.