Project Report on Inventory Management

10923 WordsFeb 13, 201244 Pages
A PROJECT REPORT ON INVENTORY MANAGEMENT SYSTEM A STUDY OF PIDILITE INDUSTRIES UNDER THE GUIDANCE OF: Dr. Anil Sinha Dean ,Prof. Corporate finance Session: PGDM 09 IILM, GREATER NOIDA ACKNOWLEDGEMENT We have prepared this study paper for the “Inventory Management System – A Study of Pidilite Industries”. We have derived the contents and approach of this study paper through discussions with company executives and internet as well as with the help of various Books, Magazines and Newspapers etc. We would like to give our sincere thanks to a host of friends and the teachers who, through their guidance, enthusiasm and couselling helped us enormously As we think there will be always need for improvement. Apart from this, we hope this study…show more content…
Inventory may be kept "in-house," meaning on the premises or nearby for immediate use; or it may be held in a distant warehouse or distribution center for future use. With the exception of firms utilizing just-intime methods, more often than not, the term "inventory" implies a stored quantity of goods that exceeds what is needed for the firm to function at the current time (e.g., within the next few hours). WHY KEEP INVENTORY? Why would a firm hold more inventory than is currently necessary to ensure the firm's operation? The following is a list of reasons for maintaining what would appear to be "excess" inventory. MEET DEMAND. In order for a retailer to stay in business, it must have the products that the customer wants on hand when the customer wants them. If not, the retailer will have to backorder the product. If the customer can get the good from some other source, he or she may choose to do so rather than electing to allow the original retailer to meet demand later (through back-order). Hence, in many instances, if a good is not in inventory, a sale is lost forever. KEEP OPERATIONS RUNNING. A manufacturer must have certain purchased items (raw materials, components, or subassemblies) in order to manufacture its product. Running out of only one item can prevent a manufacturer from completing the production of its finished goods. Inventory between successive
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