1. NAME OF THE STUDENT : CHANDAN R 2. REGISTER NUMBER : 11MECMC007 3.

TITLE OF THE STUDY :

A STUDY ON INVENTORY MANAGEMENT AT KLN ENGEENERING PRODUCTS PVT. LTD.

4. STATEMENT OF THE PROBLEM :

In modern competitive one of the burning problem of every business and industries that of cost control and cost reduction. An all pervasive effort for cost control and cost reduction is of paramount, importance for survival and growth of every industrial enterprises. This is why inventory management as a scientific device for controlling inventory cost and eliminating wastage, is now regarded as an integral part of industrial management. Inventory management does not involve any human factor, as it concerns itself not with men but with inventory.

5. OBJECTIVE OF THE STUDY :

The basic responsibility of the financial is to make sure the firms cash flows are managed efficiently. Efficient management of inventory should ultimately result in the maximization of the owners wealth. It was indicated that in order to minimizes cash requirements, inventory should be turned over as quickly as possible, avoiding stock-outs that might result in closing down the production line or lead to a loss of sales.

The main objective of inventory management consists of two parts.

a. To minimize investment in inventory. b. To meet demand for the product by efficiently organizing the production and sales operations. The firm should minimize investment in inventory implies that maintaining inventory involves costs, such that the smaller the inventory, the lower is the cost to the firm. But inventory also provide benefits to the extent that facilitate the smooth functioning of the firms.

6. SCOPE :
Inventory management being a very important concept in all the companys having a void coverage often calls for the managerial attention. In the modern times inventory management has become the integral part of the all companies. So all the firm give special importance for inventory management. The major objective of the study is to
examine the effectiveness of inventory management system adopted by R .S. S. K.N. The study mainly focuses on the techniques used by this company to control the inventory.

7. LIMITATIONS :
i. Time period of 6 weeks in such big company like KLN is very small to carry out a bigger project like inventory management. ii. Companys employees dont provide enough data for the study. iii. All the data are collected was secondary in nature so loopholes if any would carried forward in the study.

8. METHODOLOGY :
SOURCES OF DATA : The data is collected from the respected persons of the company. The communication was informal in nature. i. Secondary Data: The data was analyzed from the balance sheet, various tables, graphs, charts, referred some of the reports and other companies report.

9. DATA ANALYSIS TECHNIQUES:

For the purpose of analysis of the data and the report I have kept in mind the objective and analyzed each and every data I got at each stage of the report. I have used many tools for analyzing the data and the different ratios used for it are as follows: i. ii. Total investment in inventory ratio. Total inventory to current ratio.

iii. iv. v.

Raw materials turnover ratio. Work in process turnover ratio Finished goods turnover ratio.

CHAPTER SCHEME: Chapter 1: Introduction Chapter 2: Research methodology Chapter 3: Industry profile Chapter 4: Company profile Chapter 5: Data Analysis and Interpretation Chapter 6: Findings Chapter 7: Conclusion Bibliography

CHANDAN R 11MECMC007

GUIDE TEJASWINI