A Study on Inventory Management at Hetero Drugs Ltd

Authors

  • K. Rajeshwari Devi
  • Mrs. A. Renuka

Abstract

This study examines the concept of the INVENTORY MANAGEMENT in relation to the HETERO DRUGS LTD. Inventory is defined as a usable resource, which is physical and tangible such as material, and our stock is our inventory. Though inventory is a usable resource, it is also a idle resource, unless it is managed efficiently and effectively. Inventory management boils down to maintaining an adequate supply to meet the expected demand pattern subject to budgeting consideration. Effectiveness of materials and production functions depend to a large extent upon inventory management.

The investment on raw material should be made as per the requirement. Unnecessary investment may block up the funds. Neither too high nor too may inventory turnover ratios reduce profit and liquidity position of industry. S, proper balance should be made to increase profit and to ensure liquidity.

The raw material should be acquired from the right source at right quality and aright cost. The process that was being used by Hetero Drugs Ltd with purchasing department should undergo changes, so that, it seeks enhance the celerity of delivery of a product without compromising its quality by improving the utilization of material, labour and equipment. To reduce the work, purchasing department may enter the purchasing orders into a data base and did not send to a copy any one. When the merchandise arrived, the receiving clerk would enter the database and determine whether the order agreed with the electronic purchase order.

 

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Published

2022-07-28