TALE OF CONTENTS
| Executive summary
| Introduction to KMF
| Introduction to DMU
| Company profile
| Objectives and functions of DMU
| Products of DMU
| Departmental study
| Conceptual background to inventory management
| Kinds of inventory
| Inventory control
| Techniques of inventory control
| Methods of inventory valuation
| Analysis of inventory management at DMU
| Inventory turnover ratio
| Findings, suggestions, conclusion
This project is carried out in Dharwad Milk Union, which is a part of Karnataka Milk Federation (KMF). KMF is co-operative apex body in the state of Karnataka representing dairy farmer’s organization and also implementing dairy development activities to achieve the dairy objectives. KMF has 13 milk unions and D.M.U in the past five years and to calculate management’s performance in the past five years. The purpose of the project is to understand and analyze the present inventory management system practiced in the company. Inventory refers to the stockpile of the products that firm would sell in future in the normal course of business and the components that makes up the product. Good inventory management is good financial management. Inventory control is a science based art of insuring that enough inventory stock is held by an organization to meet its internal and external demand commitment economically. Inventory the subject, which means the attention of the top level management and influence to decision of the planning and executive personnel. Dharwad Milk Union has not adopted any scientific inventory management technique. The all the activities related to inventory is carried in manually. The major raw material for the plant is the milk. As milk is perishable product, the company cannot hold stock for long period of time. Store department maintains other raw material some of them are film, sugar, packing materials, chemical. This study is undertaken totally on the basis of information provided by the Dharwad Milk Union. The study analyses the inventory management practiced in company.
Need for the study:
Inventory constitutes major part in the current asset in general all companies. So effective management of inventory necessary otherwise major block of money will block inventory ultimately it will affect the profitability and performance of the company. Dharwad milk union comes under the cooperative societies, it is not adopted any scientific inventory management and the performance of the unit is not up to the mark. Dharwad Milk Union has the greater worth potential but it is facing difficulties in competing with competitors in terms of utilization financial resources, marketing efficiency etc. This project (Inventory management) helps to know about the utilization of inventories and ultimately competence level.
Objectives of the study:
The main purpose of the study is to ascertain the effectiveness of inventory control technique. * To examine the establishment, organization and operational dimensions of the D.M.U. * To evaluate existing practices of the inventory control technique. *
The study is aimed to analyze the inventory control technique. * To find out the possible reduction in the cost of handling the inventory.
Scope of the study:
The study of inventory management system is restricted to only Dharwad Milk Union. The time period for study is 30 days. The available information from manuals and other records, observation made by studying the work procedure as well as opinions of the executive of purchase department, inward goods stores, holding stores and finished goods stores has been considered for analysis, annual reports, income statement etc.
Limitations of the study:
* As this an academic efforts, it is limited by time, cost and coverage. * This...
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