AN EMPIRICAL INVESTIGATION OF INVENTORY MANAGEMENT PRACTICES OF PAPER MILLS

Abstract : Inventory measured in terms of money, constitutes an important element in the working capital of most business firms except financial ones. Their size and rate of turnover, therefore, influences greatly the size and rate of turnover of working capital and through them, the income and profit of a business. Thus, inventory management is having considerable significance to all business firms. This research paper is mainly based on the secondary data like as annual reports of 10 companies. Its main objectives are to evaluate the liquidity position of the paper companies. For use ratio analysis for accounting tools and statistical tools for getting results like as average.

 EXISTING SYSTEM :

 There is no any proper stock and sales management software available in paper industry ,in many industries are using their database as excel .so there is an memory space issue occurs while loading large amount of stock values in that database .

 DISADVANTAGE :

 The Indian paper share in World’s production is just 2.6% only. In this connection, inventory is the major role play in the production process. Hence there is need to study the inventory management in paper industries.

 PROPOSED SYSTEM :

 The most important benefit of an inventory management system in paper mill is to save time and money. Again, without an inventory management system, countless man-hours are wasted manually recording what items are used for each Implementation of a system that updates in real-time, process all transactions at the store or warehouse will virtually eliminate the need to manually enter data. As soon as the warehouse/store employee posts the transaction, it is automatically updated into the accounting system. This saves time both in the warehouse/store and in the office.

 ADVANTAGE :

 The word inventory in accounting language refers to the stocks of the product (finished goods) of a firm offering for sale. In a manufacturing concern, it may include raw materials, work-in process, finished goods and stores. Raw materials consist of those units or input which are used to manufacture goods that require further processing to give a shape of finished goods. Finished goods are products ready for sale.