A study of inventory management at manufacturing industries in rural India

Pradeep Kumar Shetty, C. Raghavendra Kamath

Research output: Contribution to journalArticle

Abstract

Inventory Management is a widely misinterpreted technique that is not receiving the due attention it deserves. It can be crucial to an industry’s production operations especially to small-scale manufacturing plants where even a minimum savings value results in an increased profit margin. The purpose of this study was to evaluate the present-day procurement behaviours and contrast it with mathematically concluded options thereby formulating an entire Inventory model around it. The research was conducted by visiting two industries, namely Rainbow Industries and Karnataka Closures and collecting relevant data. It was found that both industries followed a JIT model of procuring raw material. Further analysis of said data suggested that by implementing an Economic Order Quantity (EOQ) model, both industries could procure an increased quantity of raw material while saving a substantial amount of capital in procurement charges. This would also increase production rates. The analysis techniques utilized where EOQ and ABC Classification of Finished Goods. Additionally, the scope of the study extends to any management or executive personnel looking to reinvent and optimize production capacities using effective tools.

Original languageEnglish
Article numberIJMPERDFEB20198
Pages (from-to)73-80
Number of pages8
JournalInternational Journal of Mechanical and Production Engineering Research and Development
Volume9
Issue number1
DOIs
Publication statusPublished - 26-12-2018
Externally publishedYes

Fingerprint

Industry
Raw materials
Economics
Profitability
Personnel

All Science Journal Classification (ASJC) codes

  • Aerospace Engineering
  • Mechanical Engineering
  • Fluid Flow and Transfer Processes

Cite this

@article{6e44d68d398c4328b86ea724193b8455,
title = "A study of inventory management at manufacturing industries in rural India",
abstract = "Inventory Management is a widely misinterpreted technique that is not receiving the due attention it deserves. It can be crucial to an industry’s production operations especially to small-scale manufacturing plants where even a minimum savings value results in an increased profit margin. The purpose of this study was to evaluate the present-day procurement behaviours and contrast it with mathematically concluded options thereby formulating an entire Inventory model around it. The research was conducted by visiting two industries, namely Rainbow Industries and Karnataka Closures and collecting relevant data. It was found that both industries followed a JIT model of procuring raw material. Further analysis of said data suggested that by implementing an Economic Order Quantity (EOQ) model, both industries could procure an increased quantity of raw material while saving a substantial amount of capital in procurement charges. This would also increase production rates. The analysis techniques utilized where EOQ and ABC Classification of Finished Goods. Additionally, the scope of the study extends to any management or executive personnel looking to reinvent and optimize production capacities using effective tools.",
author = "Shetty, {Pradeep Kumar} and {Raghavendra Kamath}, C.",
year = "2018",
month = "12",
day = "26",
doi = "10.24247/ijmperdfeb20198",
language = "English",
volume = "9",
pages = "73--80",
journal = "International Journal of Mechanical and Production Engineering Research and Development",
issn = "2249-6890",
publisher = "Transstellar Journal Publications and Research Consultancy Private Limited (TJPRC)",
number = "1",

}

A study of inventory management at manufacturing industries in rural India. / Shetty, Pradeep Kumar; Raghavendra Kamath, C.

In: International Journal of Mechanical and Production Engineering Research and Development, Vol. 9, No. 1, IJMPERDFEB20198, 26.12.2018, p. 73-80.

Research output: Contribution to journalArticle

TY - JOUR

T1 - A study of inventory management at manufacturing industries in rural India

AU - Shetty, Pradeep Kumar

AU - Raghavendra Kamath, C.

PY - 2018/12/26

Y1 - 2018/12/26

N2 - Inventory Management is a widely misinterpreted technique that is not receiving the due attention it deserves. It can be crucial to an industry’s production operations especially to small-scale manufacturing plants where even a minimum savings value results in an increased profit margin. The purpose of this study was to evaluate the present-day procurement behaviours and contrast it with mathematically concluded options thereby formulating an entire Inventory model around it. The research was conducted by visiting two industries, namely Rainbow Industries and Karnataka Closures and collecting relevant data. It was found that both industries followed a JIT model of procuring raw material. Further analysis of said data suggested that by implementing an Economic Order Quantity (EOQ) model, both industries could procure an increased quantity of raw material while saving a substantial amount of capital in procurement charges. This would also increase production rates. The analysis techniques utilized where EOQ and ABC Classification of Finished Goods. Additionally, the scope of the study extends to any management or executive personnel looking to reinvent and optimize production capacities using effective tools.

AB - Inventory Management is a widely misinterpreted technique that is not receiving the due attention it deserves. It can be crucial to an industry’s production operations especially to small-scale manufacturing plants where even a minimum savings value results in an increased profit margin. The purpose of this study was to evaluate the present-day procurement behaviours and contrast it with mathematically concluded options thereby formulating an entire Inventory model around it. The research was conducted by visiting two industries, namely Rainbow Industries and Karnataka Closures and collecting relevant data. It was found that both industries followed a JIT model of procuring raw material. Further analysis of said data suggested that by implementing an Economic Order Quantity (EOQ) model, both industries could procure an increased quantity of raw material while saving a substantial amount of capital in procurement charges. This would also increase production rates. The analysis techniques utilized where EOQ and ABC Classification of Finished Goods. Additionally, the scope of the study extends to any management or executive personnel looking to reinvent and optimize production capacities using effective tools.

UR - http://www.scopus.com/inward/record.url?scp=85062666034&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=85062666034&partnerID=8YFLogxK

U2 - 10.24247/ijmperdfeb20198

DO - 10.24247/ijmperdfeb20198

M3 - Article

VL - 9

SP - 73

EP - 80

JO - International Journal of Mechanical and Production Engineering Research and Development

JF - International Journal of Mechanical and Production Engineering Research and Development

SN - 2249-6890

IS - 1

M1 - IJMPERDFEB20198

ER -