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A Case Study on
"INVENTORY MANAGEMENT"
at
THE KRISHNA DIST, MILK PRODUCERS MUT
AIDED CO-OPERATIVE UNION LTD.,
VIJAYAWADA

 A project report submitted Osmania University, Hyderabad in part


 for the award of degree of 

MASTER OF BUSINESS ADMINISTRA

Submitted By
P.RAJYA LAKSHMI 
Regd No: (412309672160)
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Under The Guidance of
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Under The Guidance of 
 MR.K.SRINIVAS
Search (Asst.profess

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DEPARTMENT OF MASTER OF BUSINESS ADMINI


SANA COLLEGE OF BUSINESS MANAGEME
(Affiliated to Osmania University, Hyderabad and Approve
Kodada-508 206
(2009 -2011)

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 DECLARATION
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This is certify that the report title “INVENTRY MANAGEM
partial fulfillment for the award of MBA Program of Departm
MANAGEMENT OSMANIA UNIVERSITY , HYDERA BAD, w
under guidance of K . SRINIVAS this has not been submitted to an
Project On Project Report on Inventory Project Report Final Report of Ranjana Proje
Inventory… Inventory Mgmt Management… Inventory… Inventory… report on…
institution for the award of any degree of diploma or certificate

K SRINIVAS Md
Project Guide H.O
Faculty of Business Management Ko
Kodad

(P.RAJYA L

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ACKONWLEDGEMENT

I express my sincere thanks to the department of KDMPMA


kindness of allowing me to under take this project and its
completion this project study.

I express my deep sense of gratitude to the principle M


REDDY and H.O.D. Mr. Md . IRFAN a will wisher of helped me i
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I also express my gratitude to my project guide Mr. K . SRIN


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of SANA COLLEGE OF BUSINESS MANAGEMENT for the
project.
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I express my deepsene of gratitude to Sri. P. SEETHA
Director of Finance, Sri. REHMATULLA (Asst. Accounts O
MALLESWARA RAO Deputy Director (Purchases), Sri . SURYA
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otherProject
Employees
Report on
KDMPMACUL,VIJ.
Inventory Project Report Final Report of Ranjana Proje
Inventory… Inventory Mgmt Management… Inventory… Inventory… report on…
I am greatly indebted to my guide Mr. K. SRINIVAS spari
and sharing his fast experience in successful completion of this proj

The Co-Operation I received from the employees of KDMPM

easy to single out individual for acknowledge, I am also thank


members of KDMPMACUL,VIJ

P.R

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CHAPTER -1
INTRODUCTION
Financial management is that managerial activity which is concerne
controlling of the financial resources. In other words managing the funds of th
a view to maximize the wealth of shareholders. It is concerned with effe
economic resources of business firm.

Financial management is concerned with the acquisition. Financing an


with overall goal in mind. Financial manager has to forecast expected events in
financial implication.

Firm anticipating financial needs means estimation of funds required


and current asserts or long term and short term assets.

FINANCIAL MANAGEMENT
A modern financial management performs several functions it is difficu
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functional areas of modern financial management. They are mainly three types
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  Investment decision
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  Financial decisions
  Dividend decisions
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  INVESTMENT DECISION
1.  A firms investment decisions involve capital expenditures.
Project On   They
2.Project Report
are on Inventory
therefore referred asProject Report
a capital Final Report
budgeting of
decision. Ranjana Proje
Inventory… Inventory Mgmt Management… Inventory… Inventory… report on…
3.  It commitment of long-term assets that would yield benefits in the futur
  FINANCIAL DECISIONS
1.  It is the second important decision or function to be performed by the fi
2.  Decide how to acquire funds and how met the firm's investment needs.

  DIVIDEND DECISION
1.  The proportion of profits distribute as a dividends is called the dividend
2.  Maximize the market value of the firm's shares is optimum dividend po

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NEED OF THE STUDY:


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This project report entitled "A CRITICAL STUDY ON INVENTO
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This project report entitled A CRITICAL STUDY ON INVENTO

starts with the necessity of realization ofSearch  imp
definition, concepts and
Inventory may be defined as usual, but idle resource. If resource
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physical such as materials then it is termed as inventory. Invento
acquired a great significance and sound position in recent years
profitability and liquidity. The success or failure of a business enterp
upon the management of inventory management.
Project On Project Report on Inventory Project Report Final Report of Ranjana Proje
Inventory… Inventory Mgmt Management… Inventory… Inventory… report on…

No firm can be maintained without inventory management, bu


inventory differs from firm to firm. Inventory management is neede
enterprise because it indicates liquidity position of the firm. The
management is one of the maintenance, with in a financial investment, a
goods to meet an expected supply of demand pattern. This could be r
progress (semi finished goods) and finished foods.

Moreover inventory can be one of the indicators of the managemen


material management front. Inventory management deals with de
policies and procedure for Procuring of commodities. Inventories
business concern, the most significant part of working capital or curren
in Indian industries constitute more than 60% of the current ass
significant elements in cost process.A management student should pro
various aspects. Inventory management if opted for specialization in
Vijaya dairy is big manufacturing unit and the requirement of inventory f
very high in an organization like vijaya dairy.

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Project On Project Report on Inventory Project Report Final Report of Ranjana Proje
Inventory… Inventory Mgmt OBJECTIVES
Management… Inventory… OFInventory…
THE STUDY:
report on…

PRIMARY OBJECTIVES

To determine and maintain optimum level of inventory mana
DISTRICT MILK PRODUCERS MUTUALLY AIDED CO-OPERA

 To find out the reasons for the problems and to evaluate possib
the problems.

SECONDARY OBJECTIVES

 To minimize the firm's investment in inventories and to maximize


 TO analyze how inventory is maintained in KDMPMACUL
 TO access the diary industry in Krishna district and t
KDMPMACUL
 TO ensure better services to the customer

 To study and analyze the various categories of inventory


DISTRICT MILK PRODUCERS MUTUALLY AIDED CO-OPERA

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SCOPE OF THE STUDY :

o The study is done on inventories help by bulk active divisi


DISTRICT MILK PRODUCERS MUTUALLY AIDED CO-OPE
o The scope of the study includes ABC analysis of Raw mate
and finished goods for five financial years.
o This study provides insight to the management of high value

attention of management towards movement of ‘A’ class it


years.

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METHODOLOGY OF THE STUDY: 


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The primary data, which is collected, is entirely based on the


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purchase; stores, production and sales department are mainly con

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DISTRICT MILK PRODUCERS MUTUALLY
AIDED U
CO-OPERATIVE
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Secondary Data:
The secondary data is entirely based on the data obtained for the o

Project On staff Project


of KRISHNA
Report on DISTRICT MILK
Inventory PRODUCERS
Project Report MUTUALLY
Final Report of AID
Ranjana Proje
Inventory… Inventory Mgmt Management… Inventory… Inventory… report on…
UNION LTD.

Managers and supervisors of the organization have also been


necessary information on the basis of non-structured schedules.
collected from the company's manuals and office records pertaining to p
personal and financial position.

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LIMITATIONS OF THE STUDY:


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AnyProject
studyReport on
is havingInventory Project Report
of its own advantages Final Report of
and certain Ranjana Proje
disadvantages. Among
Inventory… Inventory Mgmt Management… Inventory… Inventory… report on…

the limitations are expressed below such as:-


 The reliability of the study depends upon the information furnished by the

 Due to time constraint it is difficult to go into details of the organization.

 This study is entirely based on the given by the stores departmen

department, production department and sales department of KRISHN

MILK PRODUCERS MUTUALLY AIDED CO-OPERATIVE UNION LTD.


 The study is limited for a period of 8 weeks.

 Since milk is perishable and it has to be converted into the finished goo

hours, so there will be no operating cycle of this industry.

   The study is exclusively done for the stores department invento

KDMPMACUL

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CHAPTER-II

INDUSTRY PROFILE
Industry Scenario:
Dairying has been of life in India since the ancient Vedic times. The modern
took roots in 1950 with the sale of bottled milk in Bombay from array milk colony. T
scale milk products factory was started in 1945 at Anand a cooperative venture, with the
UNICEF, for the production of milk powder, table butter and ghee. These products we
the buffalo milk.

The world's largest development program over undertaken, the operation flood
gigantic task of upgrading and modernizing with production, procurement, processing a
with the assistance provided by the world bank and other external agencies, designed and
the National Dairy Development Board(NDDB) and the Indian dairy corporation. Th
launched in July 1970. Its basic concept compromises the establishment of co-operativ
Anand pattern.

  OPERATION FLOOD-1:
Operation flood-1 also referred to as white revolution is a gigantic project profounded b
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of India for developing Dairy industry in the country The operation flood 2 originally
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of India for developing Dairy industry in the country. The operation flood-2 originally
 completed in 1975 for its completion at total cost of about Rs.l 16 crores. The 
Search operatio

wholly financed by setting in Indis free metric tones of bottle oil donated out of the
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ANAND PATTERN-1:
Under the operation flood-1 the program for increasing milk production was ta
hinterlands of various breeding tracks on Anand pattern and loudly proclaimed with a tra
operative were started originally in 18 of Indian milk shed districts and later on mine m
Project On Project Report on Inventory Project Report Final Report of Ranjana Proje
Inventory… areas were
Inventory
addedMgmt
to makeManagement… Inventory…
a total of 27 in 10 Inventory…
states of the country report Tamil
viz, Maharastra, on…

Pradesh , West Bengal, Bihar, Hariyana , Punjab, Uttar Pradesh and Rajasthan.
Those dairy co-operatives are based on a model known as Anand pattern of dairy
Under Anand pattern concept rural co-operative infrastructure was to be built in the vil

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