Construction is a major component, which forms 45% to 50% of the country’s development activity. Construction materials and components contribute about 50% to 60% of the total value of construction. There will be some difficulty in defining construction materials. Some are exclusively used in construction and others in other industries also. Some form heavy percentage and some very minor percentage, but critical in their nature and affect the construction activity. The management and control of inventory is a problem common to all organizations in any sector of the economy. The wealth of shareholders also lies in the warehouse. More than 60% of working capital is normally being invested in the inventory. There can be disadvantages in holding either too much or too little inventory. Therefore inventory management is primarily concerned with obtaining correct balance between two extremes. Inventory management involves the development and administration of policies, system and procedures which will minimizes total cost relative to inventory decisions and related functions such as customer service requirement, production scheduling, purchasing etc.., Viewed in that perspective, inventory management has a broad scope and affects a great or number of activities in an Organization. For the past few years the concept of inventory system has gained more importance in our country. It is due to intense competition in the market, which has forced organizations to search for proper inventory control technique to reduce investment in inventories and thereby reducing overall cost. In this study the study of current inventory system is carried out and by combining the different inventory system the one new inventory system developed .By comparing the cost benefit analysis between current inventory control system and new inventory system by taking suitable actual case study will be carried out
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