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BONAFIDE CERTIFICATE
Certified that this project report titled THE STUDY ON INVENTORY MANAGEMENT is the bonafide work of Ms. KARTHIGA.V (Registration Number: 1036336) who carried out the research under my supervision. Certified further, that to the best of my knowledge the work reported herein does not form part of any other project report or dissertation on the basis of which a degree or award was conferred on an earlier occasion on this or any other candidate.

Supervisor

Head of the Department

Submitted to project and Viva Examination held on ____________

Internal Examiner

External Examiner

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DECLARATION
I, V.KARTHIGA, hereby declare that the project report entitled A STUDY ON INVENTORY MANAGEMENT at NANDHINI RUBBER INCORPORATERS, submitted to the Anna university in partial fulfillment of the requirements for the award of the degree of Master of business administration is a record of original work done by me during my period of study in Easwari engineering college(affiliated to Anna university), Chennai-89 under the guidance of Mr. SHANKAR, Faculty member, department of Management studies.

Place: Chennai Date: V.KARTHIGA

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ABSTRACT
Every organization needs inventory for smooth running of its activities. It serves as a link between production and distribution processes. The investment in inventories constitutes the most significant part of current assets/working capital in most of the undertakings. Thus, it is very essential to have proper control and management of inventories. The purpose of inventory management is to ensure availability of materials in sufficient quantity as and when required and also to minimise investment in inventories. 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. Because of the large size of the inventories maintained by firms, a considerable amount of funds is required to be committed to them. It is therefore absolutely imperative to manage inventories efficiently and effectively in order to avoid unnecessary investments. A firm neglecting the management of inventories will be jeopardizing its long run profitability and may fail ultimately. The reduction in excessive inventories carries a favorable impact on the companys profitability. The study starts with an introduction to inventory management, Companys profile, its Vision & Mission, Achievements and also the need for study, review of literature and objectives are set out for the study. Research methodology, Data analysis & Interpretation, Findings and Suggestions of the study follow. One of the main areas of the project is the analysis part, where the data are analysed & interpreted, to find out how the inventories were managed. Some of the tools used in inventory are regarding to: Economic Order Quantity ABC Analysis FSN Analysis Trend Analysis and Inventory Turnover Ratio.

ACKNOWLEDGEMENT
I express my respectful and sincere thanks to our honorable chairman Thiru T.R.Pachamuthu, who provided a wonderful atmosphere which enable me to do not only this project work but also the academic activities. I express my deepest gratitude to our principal Dr. Jothimohan Balasubramaniyan, who had given this opportunity to do this project. I profoundly thank our HOD Mr. K. Mukundhan, for providing a great opportunity to do this project. I sincerely thank my project guide Mr. SHANKAR for his kind words and continuous encouragement which has inspired me in completion of this project. I also thank all the other faculty members of my Department of Management Studies for their valuable help and advice for the project. My heartfelt and profound thanks to Mr.J.JAYAPRAKASH, accountant in Nandhini rubber incorporaters, Chennai for permitting me to carry out the project in the organization and for his valuable suggestions which helped me so much to shaped my project. I am also taking the pleasure to express my sincere thanks to all the other staff members of the department of Management Studies, SRM-Easwari Engineering College for their kind cooperation. I am always thankful to my Parents, Friends and Almighty for their blessings and for the support throughout the project.