A Study on Inventory Management with special reference to Suraj Foods, Kaniyampuram

IntroductionInventory is the physical stoke of goods maintained in an organization for its smooth sunning. In accounting language it may mean stock of finished goods only. In a manufacturing concern, it may include raw materials, work-in-progress and stores etc. In the form of materials or supplies to be consumed in the production process or in the rendering of services. In brief, Inventory is unconsumed or unsold goods purchased or manufacturedStatement of the problem* The biggest challenges, that most small scale business face is developing effective inventory control system.* Small scale businesses experience high losses due to stock shortages and theft, this is as result of mistakes that have been made in keeping track of inventory.* Though is theft by employees or by customers stock damage is greatest during the holiday season.Objectives of the Study* To examine the organization structure of inventory management in the stores of SURAJ FOODS.* To discuss pattern, levels and trends of inventories.* To access the performance of inventory management by selected accounting ratios.Scope of the study* To drive meaningful application of theory for actual implementation.* Identifying the present potential of the company's inventory methods and aims* This study also gives the idea about industrial focus and addressable towards maintaining inventory.Research MethodologyLimitation of the StudyThe information, which was needed, could not be made public by the organization.* The finding and suggestion cannot be generalized.* The study covered a wide concept hence wide collection and coverage of information was not easily possible.* The reliability of the study depends upon the information furnished by the officials.* Due to time constraint it is difficult to go into details of the organization.Review of Literature1. A study on inventory management in Smelter Plant with Reference to National Aluminum Co.ltd, Angul Orissa; Biliza Toppo; 2008-2010; PGDM; Xavier Institute of social service[XISS] . This study tells that the main focus of inventory management is on transportation and warehousing. The decision taken by management depend s on the traditional method of inventory control models. The traditional method of inventory management is how much useful in these days the author tell about it. He is also saying that the traditional method is not a cost reducing, it is so much expensive. But the managing the inventory is most important work for any manufacturing unit.2. A study on inventory management in standard pesticides pvt ltd; Hardik.J.Choksi; 2007-2009; MBA; Gujarat technological university. He said that it is easy to turn cash into inventory, the challenge is to turn inventory back into cash. In early 1990's many distributor recognize that they needed help controlling and managing their largest asset inventory. In response to this need several companies developed comprehensive inventory management modules and systems. These new package include many new features designed to help distributors effectively managed warehouse stock. But after implementing this many distributors do not feel that they have gained control of their inventory.3. A study on inventory control technique in BSNL; Udaya Kumar TS; 2008-2010; MBA; Moodlakatte Institute of Technology, Karnataka. In this study he explains that by managing the inventory it becomes easier for the organization to meet the profit goals, shorter the cash cycle, avoid inventory shortage, avoid excessive carrying costs for unused inventory, and improve profitability by decreasing cash conversion and adopt JIT system. According to this study companies need to get smart about inventory. Boosting financial performance is another benefit that comes from better inventory management.4. A study on inventory management in Jubilant Organization ltd; Vaibhav Agarwal; 2006-2008; MBA; U. …