A Study on Inventory Management in Autokast Ltd, Kerala.

Abstract

Inventory plays very important part of current assets which is used by almost all of the companies in India. The company uses various types of inventories like raw material, work in progress, finished goods, and transportation. Most of the companies will invest more on the inventory when they compare to other inputs. The proper maintenance of assets enables the firm to earn profit and maintain proper liquidity and reserves. The study about inventory management helps to understand the methods followed for maintaining the inventories at Autokast Ltd, the study was conducted for the period of 6 weeks, to analyze inventory turnover ratios, activity ratios and inventory to capital employed which will helps to evaluate or find out the efficiency and problems related to the inventory management. The motive of the study is to understand the techniques and efficiency that the company uses to manage inventories. After checking the financial statement of 5years, we can draw a conclusion whether the overall Performance of the company is increasing or decreasing. The study shows that there performance is changing and they have to implement some methods for maintaining the inventories. Sometimes the inventory goes above the maximum level and sometimes goes below the minimum level, the situation in which the inventory goes below the minimum level is called danger level, so it is very important to control inventory in every company.