INVENTORY MANAGEMENT BY  IMPLEMENTATION OF ABC ANALYSIS  UPON MEDIUM SCALE INDUSTRY

Himanshu Mahant; Prof. Sanjeev Singh Chouhan; Mr. Abhishek Yadav

Volume : II, Issue : VIII, August - 2013

INVENTORY MANAGEMENT BY IMPLEMENTATION OF ABC ANALYSIS UPON MEDIUM SCALE INDUSTRY

Himanshu Mahant, Prof. Sanjeev Singh Chouhan, Mr. Abhishek Yadav

Abstract :

Conversion of raw materials into finished goods is the main function of every production firm. Required raw materials if purchased and stocked in advance, ensures smooth production process. But, how much should be purchased? How to stock it? How to release the stock? What costs are involved? How to control the costs of acquiring and storing materials? All these issues call for Materials Management. Materials management involves Materials acquiring-purchasing, receiving and storing, inventory control, disposal of surplus and control on scrap. Effective materials management is key to a firm�s profitability. The purpose of this paper is to investigate the reasons behind the inventory management inefficiency in Industry by implementation of ABC, and then the proposed managerial suggestions will be presented to deal with the issues.