Research Report on Inventory Management at Whirlpool
1.0 EXECUTIVE SUMMARY
Every organization needs inventory for smooth running of its activities. It serves as a link between production and distribution processes. The investment in inventories constitutes the most significant part of current assets/working capital in most of the undertakings. Thus, it is very essential to have proper control and management of inventories. The purpose of inventory management is to ensure availability of materials in sufficient quantity as and when required and also to minimize investment in inventories. Raw materials, goods in process and finished goods all represent various forms of inventory. Each type represents money tied up until the inventory leaves the company as purchased products. Because of the large size of the inventories maintained by firms, a considerable amount of funds is required to be committed to them. It is therefore absolutely imperative to manage inventories efficiently and effectively in order to avoid unnecessary investments. A firm neglecting the management of inventories will be jeopardizing its long run profitability and may fail ultimately. The reduction in excessive inventories carries a favorable impact on the company’s profitability.
As we know Whirlpool of India Ltd is a Production unit. Whenever production term comes then the first thing that comes to our mind is Inventory because inventory is the base for any production unit, so when we control and manage the inventory properly then the company is benefited by reducing holding and carrying cost.
The project requires two month time for completion .The steps involved in collection of data of various sources like SAP, Annual reports, Computerized Inventory Management system(CIMS).
By using various techniques such as ABC and Reorder level etc. management minimize investment in inventory and meet a demand for the product by efficiently organizing the production and sales operations.
Inventory management is the process of efficiently overseeing
Every organization needs inventory for smooth running of its activities. It serves as a link between production and distribution processes. The investment in inventories constitutes the most significant part of current assets/working capital in most of the undertakings. Thus, it is very essential to have proper control and management of inventories. The purpose of inventory management is to ensure availability of materials in sufficient quantity as and when required and also to minimize investment in inventories. Raw materials, goods in process and finished goods all represent various forms of inventory. Each type represents money tied up until the inventory leaves the company as purchased products. Because of the large size of the inventories maintained by firms, a considerable amount of funds is required to be committed to them. It is therefore absolutely imperative to manage inventories efficiently and effectively in order to avoid unnecessary investments. A firm neglecting the management of inventories will be jeopardizing its long run profitability and may fail ultimately. The reduction in excessive inventories carries a favorable impact on the company’s profitability.
As we know Whirlpool of India Ltd is a Production unit. Whenever production term comes then the first thing that comes to our mind is Inventory because inventory is the base for any production unit, so when we control and manage the inventory properly then the company is benefited by reducing holding and carrying cost.
The project requires two month time for completion .The steps involved in collection of data of various sources like SAP, Annual reports, Computerized Inventory Management system(CIMS).
By using various techniques such as ABC and Reorder level etc. management minimize investment in inventory and meet a demand for the product by efficiently organizing the production and sales operations.
Inventory management is the process of efficiently overseeing