A STUDY ON INVENTORY MANAGEMENT PRACTICES OF

KCP CEMENT.

NAME:
ROLL No :




Project submitted in partial fulfillment for the award of
PGDMSM
By

ANDHRA PRADESH PRODUCTIVITY COUNCIL, HYDERABAD

2012-2014



DECLARATION




I hereby declare that this Project Report titled A Study
on Inventory Management Practices Of KCP Cement. is Submitted
by me to the Andhra Pradesh Productivity council, Hyderabad is an
Original work undertaken by me and it is not submitted to any other
University or Institution for the award of any degree diploma / certificate
or published any time before.



Name & Address of the student: Signature of the Student,

Date:
Place:









ACKNOWLEDGEMENT

I wish to take this opportunity to express my deep gratitude to all the
people who provided their cooperation in various ways during my project work.
I had my pleasure to acknowledge the help of those individuals.
My sincere thanks to Mr. SANJAY TAURANI Associate. Professor at
TKR institute of management and science for providing better guidance in
Developing this project. Also I wish to thank MR B. ANIL KUMAR center
manager for providing me opportunity to do the project at Value services.
My heart full thanks to the BPO employees who cooperated with me
during the Survey. Finally, I thank my parents and my friends for their
continuous support in accomplishment of this project.










Certificate of originality

Company certificate









































TABLE OF CONTENTS
Chapter No. CONTENTS PAGE No
List of Tables i
List of Figures ii
1 Introduction 1
Introduction
Definition of Inventory Management
Need of the Study
Objectives of the Study
Scope of the Study
Limitations of the Study

2 Review of Literature 5 30
Meaning of Inventory
Cost of Holding Inventory
Benefits of Holding Inventory
Need for Inventory Control
Reasons & Benefits of Inventory
Essentials of Inventory Control
Objectives of Inventory Control
Advantages of Inventory Control
Issue Pricing Methods
Techniques for Inventory Management

3 Industry Profile
4 Data Analysis & Presentation
5 Summary & Conclusions
6 Bibliography
7 Appendices
Appendix A: Profit & Loss A/c of KCP Cements
Appendix B: Balance Sheet of KCP Cements
Appendix C: Cash flow Statement of KCP Cements





LIST OF TABLES
Table No. Table Name Page No.
1 Raw Material at Cost for the years 2007 to 2012
2 Work In Progress at Cost for the years 2007 to 2012
3 Current Ratio for the years 2007 to 2012
4 Inventory Turnover for the years 2007 to 2012
5 Inventory Conversion for the years 2007 to 2012
6 Fixed Assets Turn Over for the years 2007 to 2012
7 Debt Equity for the years 2007 to 2012
8 Earnings per Shares for the years 2007 to 2012
9 Raw Materials Turnovers for the year 2007 to 2012
10 Debtor Turnover for the years 2007 to 2012










LIST OF FIGURES
Table No. Figure Name Page No.
1 Raw Material at Cost for the years 2007 to 2012
2 Work In Progress at Cost for the years 2007 to 2012
3 Current Ratio for the years 2007 to 2012
4 Inventory Turnover for the years 2007 to 2012
5 Inventory Conversion for the years 2007 to 2012
6 Fixed Assets Turn Over for the years 2007 to 2012
7 Debt Equity for the years 2007 to 2012
8 Earnings per Shares for the years 2007 to 2012
9 Raw Materials Turnovers for the year 2007 to 2012
10 Debtor Turnover for the years 2007 to 2012

















ii
A B S T R A C T



"Inventory" to many business owners is one of the more visible and tangible aspects of doing
business. 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. Likewise, merchandise stocks in a retail store contribute to profits only
when their sale puts money into the cash register.
The study is done on inventories held by Bulk activities division of KCP cement
company.The scope of the study includes the ABC Analysis of Raw Materials, WIP and
Finished Goods for four financial years. This study provides insight to the management of
High Value items and also brings attention of management towards movement of A class
items.
ABC analysis, FSN analysis and Inventory turnover analysis. While the overall objective of the
inventory systems to minimize the cost to the firm at the risk and acceptable scope for improving
inventory management in India.
This study provides to understand relative advantages and disadvantages of various
techniques and understand the impact of business dynamics on inventory. This study helps to
know relationship between raw materials and sales