A STUDY ON ESSENTIALS OF INVENTORY MANAGEMENT

Abstract

The project work entitled Inventory Management includes detail study about inventory, its importance and effectively it should be managed for smooth operations of business. Inventories are assets of the firm and require investment and hence involve the commitment of firm’s resources.
Every firm is required to manage the inventories in such a way as to get the best returns. The objective of inventory management is to determine the optimum level of the inventory that is the level at which the interest of all the departments are taken care of.
The inventory management seeks to maximize the wealth of the share holders by minimizing the cost of procuring and maintaining.
The objective behind the inventory management is maintaining sufficient stock of raw materials ensuring continuous supply to production process for uninterrupted production schedule and minimizing the total annual cost of maintaining inventories.
Inventories are assets of the firm and hence involve the commitment of firm’s resources; managers must ensure that the firm maintains inventories at the correct level.