Inventory management in KSE Limited, Irinjalakuda

Abstract

KSE Ltd. is one of the leading cattle feed company in India. This study was aimed to analyse the management of inventory in the company. In every concern, efficient management of inventory assumes much importance because an optimum level of inventory enables the management to increase the productivity of capital by reducing material cost and preventing blocking up of large working capital for a longer period. It is in this context that the inventory management of KSE Ltd. was studied. The objectives of the study were to analyse the inventory management techniques/ practices of KSE Ltd., Irinjalakuda unit and to analyse the efficiency of the inventory management system of the company. The system of inventory management was studied by conducting personal interview with the officials of the company and it was found out that a systematic purchasing policy and satisfactory controlling techniques were used by the company. To analyse the efficiency of inventory management, secondary data were used. For this the data for the past ten years from 2008-09 to 2017-18 of KSE Ltd. were compared with Godrej Agrovet Ltd. ratio analysis was the main tool used for analysing the data. Along with that percentage analysis was also used. From the detailed analysis of the data it was evident that the management of KSE Ltd. has succeeded in managing the inventory efficiently. The Company was managing inventory by smoothly handling the production and maintaining liquidity. A healthy trend in the firm's working capital management was disclosed by the study.