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Dr.Narla Tata Rao Thermal Power Station is one of the power generating station of
is considered to be the best one in the country’s thermal power generating stations.


Inventory management is usually not the direct operating responsibility of the

finance manager, the investment of funds in inventory is a very important aspect of
financial management. A proper planning of purchasing, handling, storing and
accounting should from a part of inventory management.
Efficient systems of inventory management will determine.
A. What to purchase?
B. How much to purchase?
C. From where to purchase?
D. Where to store? Etc…

The term inventory refers to the stock of the product a company is manufacturing for
sales and components that make up the product. In other words inventory is
composed of assets that will be showed in future in the normal course of business
operations. The various forms in which inventories exist in a manufacturing
company are :
 Raw materials
 Work in progress(semi finished goods)
 Finished goods
According to B.Banerjee the term inventory refers to the aggregate of those items of
tangible assets, which are
1. Held for sale in ordinary course of the business.
2. In the process of production for sale.
3. To be consumed in the production of goods or services to be available
for sale.

The purpose of inventory management is to keep the stocks in such a way that
neither there is over-stocking, the over-stocking will mean a reduction of liquidity of
other production processes. Under-stocking will result in stoppage of work.

Primary objective:
 To study various inventory control measures.
Secondary objective:
 To study the store analysis between the years of 2003-2009
 To study the usage of coal, furnace oil, high speed oil in Dr.NTTPS.
 To study the reasons for the shortage of coal.
 To review the ABC analysis and understand the impact of business on

The sources of data collection will be -
• Primary source – The data has been gathered through interactions and
discussions with the executives working in the division. Some important
information has been gathered through couple of unstructured interviews of
• Secondary source – Referred standards texts and reference books for
collecting the information regarding the theoretical aspects, of the topic. And
annual reports and other magazines published by the company are used for
collecting the required information.



Data Collection
• Primary data 20 days (May 17th to May 30th )
• Secondary data 9 days ( May 30th to June 7th )

Data Processing & Analysis 10 days(June 7th to June 17th )

Preparation of Final Report 5 days(June 17th to June 21th)

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