A Study on Inventory Management with Reference to Dr. Reddy's Lab
REST Journal on Banking Accounting and Business · 2024
Every industry on average spends 70 percent on raw materials (inventory).Therefore, there is a need to know the raw material cost and also there is great importance to understand the inventory management system of this industry.The study helps a log to various departments to take steps to control the inventory process.In this competitive business world, each and every business organization need inventory management system for determining what to order, when to order, where and how much to order so that purchasing and storing costs are the lowest possible without affecting production and sales.Thus, inventory management control incorporates the determination of the optimum size of the inventory-how much to be ordered and when after taking into consideration the minimum inventory cost.The overall inventory management includes design and inventory control organization with proper accountability establishing procedure for inventory handling disposal of scrap, simplification, standardization and codification of inventories, determining the size of inventory holdings, maintaining record points and safety stocks, economic order quantity, Economic Order Quantity analysis and VALUE analysis and finally framing an inventory manual.