Inventory Management

Inventory is a list of goods and materials believed and available in stock by a business. Inventory is also continued to take care of difference in appeal and lead time. In some cases, it takes care of cumulative price leaning of materials. Inventory control and management must be designed to meet the orders of the market place and care the company's strategic plan. The greatest important objective of inventory mechanism is to maintain a best level of investment in the inventory which diminishes the cost and to categorize the several constituents based on their value. The main objective of the study is to assess the efficiency of inventory management in Aringar Anna Sugar Mill, Kurungulam using the costing techniques like ABC Analysis, Inventory revenue ratio and Economic Order Size. The study was conducted for a period of five financial years from 2008- 2009 to 2012-2013. The secondary data were collected from the inventory maintenance records maintained by the company for the past five financial years. From the analysis, it is indirect that the company should strictly follow the Economic order quantity for optimum purchase. It can also maintain safety stock for its components in order to avoid stock-out condition and help in continuous production flow. The company must implementation tight control on stock levels based on ABC Analysis and maintain high proportion in inventory turnover ratio for well-organized management of the inventory.