Inventory management project report for MBA

[pooja]

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I am in final semester of MBA Program. I have to make a major project report for final semester. I got topic on Inventory Management. So please provide sample project report on Inventory Management of MBA Program to make my report?

[pooja]

As you are looking for sample project report on Inventory Management for MBA Students, so I am providing sample project report here...........

Project Report on Inventory Management at Sujana Metal Products Ltd:

CHAPTER-1
INTRODUCTION
INTRODUCTION
Financial Management is concerned with the duties of the finical manager in the business firm. Financial managers actively manage the financial affairs of any type of business, namely financial and non-financial, private and public, large and small, profit seeking and non-profit.

They perform such varied task, as budgeting, financial forecasting, cash management, credit administration, investment analysis, funds management and inventory management.

A term inventory refers to the stock file of the products a firm is offering for sale and the components that make up the product. In other words, inventory is composed of assets that will be showed in future in the normal course of the business operations. The assets which firms store as inventory in anticipation of need are:
Raw materials
Work in process (Semi Finished goods)
Finished goods

The raw material inventory contains item that are purchased by the firm from other and are converted into finished goods through the manufacturing (production) process. They are an important input of the final product. The working process inventory consists of items currently being used in the production process.

They are normally semi finished goods that are at various stages of production in a multi stage production process. A finished goods represented final or completed products which are available for sale .The inventory of such goods consists of items that have been produced but are yet be sold.

Inventory, as a current asset, differs from other current assets because only financial managers are not involved. Rather all the functional areas, finance, marketing, production, and purchasing are involved. The views concerning the appropriate level of inventory would differ among the different functional areas.

The job of the financial manger is to reconcile the conflicting view points of the various functional areas regarding the maximizing the owners wealth. Thus, inventory management, like the management of other current assets , should be related to the overall objective of the firm. It is in this context that the present chapter is devoted to the main elements of inventory management from the view point of financial management.

The objective of inventory management is explained in some detail sections. Section two is concerned with inventory management techniques. Attention is given here to basic concepts relevant to the management and control of inventory.

The aspects covered are:
Determination of the type of control required.
The basic economic order quantity
The reorder point, and
Safety stocks.

As a matter of fact, the inventory management techniques are a part of production management. But a familiarity with them is of great help to the financial managers in planning and budgeting inventory.

NEED TO HOLD INVENTORIES
Martin and miller identified three general motives for holding inventories

TRANSACTION MOTIVE:
This refers to the need of maintaining inventory to facilitate smooth production and sales operations.

PRECAUTIONARY MOTIVE:
Precautionary motive for holding inventory is to provide a safeguard when then actual level of activity is differ than anticipated. This inventory serves when there is a unpredictable changes in the demand and supply forces.

SPECULATIVE MOTIVE:
This motive influences the decision to increase or decrease the levels of inventory to take the advantage of price fluctuations.

OBJECTIVE OF THE STUDY
To study about the ordering levels for the important components of inventory.
To understand and measure economic order quantity for the selected raw material items.
To analyze its inventory management methods with the help of ABC analysis, VED analysis etc.
To evaluate the inventory management practices of SUJANA METAL PRODUCTS LIMITED.
To offer suitable suggestions for the improvement of inventory management practices.

LIMITATIONS OF THE STUDY
Detail study about all the material was not possible because of time limit.
Some of the information was kept confidential by the stories department.
Study was confined only to the selected components in the stores department.

RESEARCH METHODOLOGY
The data has been gathered through interaction and discussions with the executives working in the division.
Some important information has been gathered through couple of unstructured interviews of executive.
Annual reports and other magazines published by the company are used for collecting the required information.