Inventory Management

Topics: Automotive industry, Hyundai Motor Company, Inventory Pages: 48 (11024 words) Published: February 20, 2013

Material is the lifeblood of industry. No industrial organization can operate without them. Business organization not only sells, they also buy vast quantities of raw materials, manufactured parts, and installation equipment's, supplies and business services.

In the process of industrial development around the world, the 5 M's i.e., Machines, Men, materials, Money and Management have become the necessities of every business organization.

Inventory is an essential current asset to any type of production unit. The inventory constitutes of raw materials, work in progress (semi finished goods) and finished goods.

The inventory occupies vital role after cash and receivables. The management of inventory is an important factor to be considered.

The inventory should be maintained at an optimum level, the excess of inventory leads to increase in maintaining cost and the inadequate inventory leads to disturbances to the production department.

Today inventories are viewed by the senior management as a great potential risk and seldom as a measure of wealth. A constant nagging fear exists in the minds of minds of most policy makers that materials stocked in excess of actual requirement may lend to drastic action like writing off or selling at lower prices.

Some times, the material becomes worthless due to deterioration and prices. Some times, the materials become worthless due to deterioration and technological changes. The phenomenon of obsolescence is in fact, of relatively recent origin. But obsolescence appears to be greater importance in the product life cycle.

Inventory management decision in the new economic scenario can no longer be isolation from the list of organization activities. Inventory management co-operate strategy and financial parlances are closely linked.

In Financial Parlance "INVENTORY" is defined.

"As the sum of the value of raw materials maintenance consumables and finished goods, stocked at any given point of time".

The operational study of inventory would be the amount of raw materials, gunny bags maintenance, and consumables. Materials are to be stocked for the smooth running of company. Since these resources of any kind when kept in the stores, inventory is defined as an idle resource of any kind management with regard to Hothur Hyundai Motors.


➢ The main objective of the study is to understand the method of inventory management in HOTHUR HYUNDAI.

➢ To know how the investment in inventory is maintained at optimum level.

➢ To understand the purchase procedure in HOTHUR HYUNDAI.

➢ To ascertain the techniques practiced by HOTHUR HYUNDAI in order to minimize purchasing cost and other related cost.

➢ To know how the company is supplying raw materials of facilities uninterrupted flow of production.

➢ To know that without proper management of materials how it is difficult to carry on the production process.

➢ To give some partial suggestions to reduce concerned cost and try to minimize the block up of funds in inventory.


1. The field study: -
The study was conducted at Hothur Hyundai Motors, Hospet in finance & purchase departments.

2. Research design: -
The study was descriptive in nature. The attempt was made to evaluate the performance of the company, for ascertaining the performances of inventory management, the technique and method that has been used in Hothur Hyundai Motors .

3. Sources of data: -
Primary as well as secondary data has been collected for the purposed of the study.

4. Tools of data collection: -
✓ Primary data was through discussions with concerned executives. ✓ Secondary data was...
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