Research Report on Inventory Management at Whirlpool

6804 WordsJul 16, 201228 Pages
1.0 EXECUTIVE SUMMARY Every organization needs inventory for smooth running of its activities. It serves as a link between production and distribution processes. The investment in inventories constitutes the most significant part of current assets/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. Raw materials, goods in process and finished goods all represent various forms of inventory. Each type represents money tied up until the inventory leaves the company as purchased products. Because of the…show more content…
Accurately maintaining figures on the finished goods inventory makes it possible to quickly convey information to sales personnel as to what is available and ready for shipment at any given time. In addition to maintaining control of the volume and movement of various inventories, inventory management also makes it possible to prepare accurate records that are used for accessing any taxes due on each inventory type. Without precise data regarding unit volumes within each phase of the overall operation, the company cannot accurately calculate the tax amounts. This could lead to underpaying the taxes due and possibly incurring stiff penalties in the event of an independent audit. 2.0 RESERCH METHODOLGY 2.1 PRIMARY OBJECTIVE To analyze the efficiency of Inventory Management of whirlpool of India Ltd. 2.2 SECONDARY OBJECTIVE • To identify the optimum level of inventory this minimizes the cost. • To identify safety stock level for various components. • To classify the various components. • To identify inventory requirement of the company for the next year. 2.3 SCOPE OF STUDY 2.4 LIMITATIONS OF THE STUDY 1) Being our first attempt in the field of research, there might be first time errors. 2) This study is based on the normal situation; we have not considered the abnormal cases. 3) Some part of the study is dependent on the secondary data. The data collected may not be

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