A study on inventory management project for MBA

The growth of any organization depends on the over all performance such as production , marketing , human resource and financial performance of the organisation. The financial performance of the any organisation reflects the strength , weakness , opportunities and threats of the organization with respect to profits earned, investment, sales realization , turnover , return on investmest , networth of capital , efficient management of financial resources and deliberate analysis financial results are pre requisite for success of an enterprise.

In that inventory management is one of the major and important area of financial management   Inventory constitutes the most significant part of current assets of a large majority of companies in India. On an average, inventories are approximately 60% of current assets in public limited companies in India. Because of the large size of inventories maintained by firms, a considerable manage of funds is required to be committed to them. A firm neglecting the management of inventories will be jeopardizing its long-run profitability and may decree, e.g., 10 to 20 percent, without any adverse effect on production and sales.

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