A Study on Inventory Management in The Malappuram Co-operative Spinning Mills Ltd Malappuram, Kerala.

Abstract

Inventory plays most important part of current assets which is used by majority of the companies in India. The company uses various types of inventories like raw material, work in progress, finished goods, and transportation. Most of the companies, they invest more on the inventory when compare to other inputs. The proper maintenance of assets helps the firm to earn profit and maintain the liquidity and reserves. The study on the topic inventory management helps to understand the procedures followed for maintaining the inventories at Malappuram Co-operative Spinning Mills Ltd, the study was conducted for the period of 10 weeks, to analyse inventory turnover ratios, activity ratios and inventory to capital employed which helps to evaluate or identify the efficiency and problems related to the inventory management. The objective of the study is to know the techniques and efficiency that the company utilizes to manage inventories. After analyzing the financial statement of 5 years we can draw a conclusion whether the Performance of the company is growing or declining. The study disclose that there performance is fluctuating and they have to implement various methods for maintaining the inventories.