Inventory Management of Steel Industry:
BSRM, RSRM, & Islam Steel Mills Ltd.
Course Title: Project Operations and Management
Course Code: BA-3215
Sk. Md. Rezowanur Rahman
Md. Faisal Rahman
Shara Binte Hamid
Md. Reaz Uddin
Business Administration Discipline
Management & Business Administration School
3rd year, 2nd term
March 06, 2012
Inventories play a major role in the economy and businesses. From the firm’s view point, inventories represent an investment in capital; capital is required to store materials at any stage of completion. Thus the proper balance must be struck to maintain proper inventory level with the minimum financial impact to the organization. Inventory management, or inventory control, is an attempt to balance inventory needs and requirements with the need to minimize costs resulting from obtaining and holding inventory. 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-in-time 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
Table of Contents
rationale of study
Limitation of the studies
Why Keep Inventory?
Major Types of Inventory
Materials and Methods
Data collection method
Presentation of data
Measurement of Variables
Measurement of Variables
Company Profile of BSRM
Company Profile of RSRM
Company Profile of Islam Steel Mills Ltd.
Demands of Billets
Hypothesis, ANOVA Calculations, and Conclusion
Every business needs adequate liquid resources for maintaining day-to-day cash flows. It requires sufficient cash for paying wages as well as salaries, as they fall due and to pay creditors if it is to keep its workforce, and ensure its supplies. Maintaining adequate working capital is not just important in the short-term. Sufficient liquidity must be maintained for ensuring the survival of the business in the long-term as well. Even a profitable business may fail if it does not have ample cash flow to meet its liabilities as they fall due. Therefore, when businesses make investment decisions they must not only consider the financial outlay involved with acquiring the new machine or the new building, etc., but must also take account of the additional current assets that are usually involved with any expansion of activity. Increased production tends to engender a need to hold additional stocks of raw materials and work in progress. Increased sales usually mean that the level of debtors will increase. A general increase in the firm’s scale of operations tends to imply a need for greater levels of cash. Then we should know why should the managers of a business pay special attention to working capital? Management must ensure that a business has sufficient working capital. Too little capital will result in cash flow problems highlighted by an organization exceeding its agreed overdraft limit, failing to pay the suppliers on time and being unable to claim discounts for prompt payment. In the long run, a business with insufficient working capital will be unable to meet its current obligations and will be forced to cease...
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