Volume : 3, Issue : 1, January - 2014

A Study on Inventory Management at Amara Raja Electronics Ltd, Tirupati

Dr. B. Rambabu, Dr. G. Malyadri

Abstract :

In any organization the inventory of materials plays vital role in working capital management. A small saving in the inventory will reflect a vital margin in profit of the organization. Inventory control means the availability of right materials of right quantities coordinated with lead time. Each and every component of inventory is important and managing the inventories to keep in an optimum level is a must. Being an auto ancillary industry IPPL is facing a stiff competition in the market. Since inventory is the major part of their cost of production there is a need for inventory control by way of reducing cost and optimum utilization of materials. Though the company is having certain policies regarding this, still it requires through study of their policy and systems to some extent to understand the inventory management. ? The import components are contributing nearly 25% of the total production cost. The present order quantity is very high with some items which cause the problem of over stocking. This leads to additional carrying cost ? Holding of stock is very high level Due to confidentiality of the data and year ending constraint IPPL ltd. the researcher could not able to collect the required data required for this study. As the company is a closely held one and its policy of disclosing data to the outsiders is restricted. Hence the collection of full fledged data could not be achieved.