A Study on Inventory Management at D Mart

Abstract

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. ABC analysis of inventory is a process of classifying the products based on the value of importance. This concept is derived from the Pareto principle of 80/20 rule which focuses on vital few from trivial many. Not all items in an inventory are of the same value, therefore these items are broken down into three categories A, B and C. There can be a system where in periodical review (twice in a month) of inventory could be carried out so that the inventory can be kept under control. Improve the minimum level of product C up to 5%-8% in total sales value by increasing market level of these products. It helps to get minimum return on investment in these products as soon as possible. There should be maintaining proper communication.