A

REPORT ON
RESEARCH STUDY OF
INVENTORY MANAGEMENT

PIYUSH BHATIA-M064
SHIKHER JAIN-M070
HARPREET KHALSA-M073
HARSH SHAH-M086

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Title of the Research Proposal

Acknowledgements
Executive Summary
INTRODUCTION
Introduction
Significance and need for study
Objectives of the study
LITERATURE REVIEW
Concepts and Constructs : Definition of terms
Gap Analysis
Issues raised by the Review
RESEARCH FRAMEWORK OF THE STUDY
Proposed Framework
Rationale of Framework
Variables

METHODOLOGY AND DATA SOURCES

Unit of Analysis and Sample Selection
Tools and Techniques
Data Sources
DATA ANALYSIS AND INFERENCE
Statistical Analysis
Interpretations
SUMMARY AND CONCLUSIONS
Summary of findings
Conclusions
Scope and Recommendations
Limitations of the study
REFERENCES
APPENDIX

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ACKNOWLEDGEMENT

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Its a great pleasure and moment of immense

satisfaction for us to express our profound
gratitude to Prof. Jinu Kurian, MPSTME, Mumbai ,
whose constant encouragement enabled us to
work enthusiastically. Her perpetual motivation,
patience and excellent expertise in discussion
during progress of the research work have
benefited us to an extent, which is beyond
expression.
We sincerely wish to express our grateful thanks
to her for embedding in us the knowledge of
research work and its necessity .We are highly
indebted to her for her invaluable guidance and
ever-ready support in the successful initiating of
our research work. Working under her guidance
has been a fruitful and unforgettable experience
and we have definitely developed a research
bent of mind with her constant indications during
the progress of our work.
We are very grateful to even our colleagues, for
constantly motivating us and maintaining high
spirits throughout the journey of our research.
Their opinions and concerns opened us to extend
our knowledge further.
We would also like to thank the researchers
whose work we referred for enlightening us on
the subject matter. Their work has been a
stepping stone for us for which we are extremely
grateful.

Chapter I - Introduction
Inventory management is the process of efficiently overseeing the constant flow of units into
and out of an existing stock of goods. This process usually involves controlling the transfer of
units in order to prevent the inventory from becoming too high, or dwindling to levels that
could put the operation of the company into jeopardy. Many small business owners,
especially if the business has very few products, keep track of inventory manually. The
easiest way to perform manual inventory management is to use a spreadsheet. For example, a
small bakery might use a spreadsheet to keep track of inventory purchases and usage. Manual
systems allow the small business owner to manage inventory with very little investment in
systems or training.
Inventory management systems that use barcode technology increase the accuracy and
efficiency of managing inventories. All major retailers use barcode technology as part of an
overall inventory management program. While barcode technology has done a lot to increase
the accuracy and efficiency of managing inventory, radio frequency identification (RFID) has
raised the bar on inventory management. Companies that use RFID typically move thousands
of pieces of inventory through their doors.
Companies face a dilemma in today's competitive marketplace, where on one hand,
customers demand customized products and services and require that their orders are filled
quickly, but on the other hand they do not want to pay a premium for this customization and
availability. Therefore, organizations are exploring ways toward postponement strategy in
response to constantly changing demands .The argument today is that , the cost of holding
inventory, extensive product proliferation and the risk of obsolescence, especially in rapidly
changing markets, make the expense of holding large inventories of finished goods excessive
and that high demand items naturally have safety stock assigned to them, but in many
organizations there are so many very-low-demand items that keeping any stock of these items
is unreasonably expensive, so they argue that companies must now provide good service
while maintaining minimal inventories. Therefore, inventory management approaches are
essential aspects of any organization.
The consequences of poor inventory management may result in the customers looking
elsewhere in order to have their IT requirements met. Businesses that rely on high technology
needs to ensure they can have their IT issues resolved in a timely manner, as any delay may
lead to a loss in revenue or production. Therefore, many leading high technology
organizations may hand over the inventory management aspect of it to a third party logistics
provider, in order for the high technology organizations to focus on the keys aspects of their

company being research and development, customer service and customer technical support.
Third party logistics providers need to ensure they have the right system and practices in
place in order to carry out the priorities and duties of the high technology organization.
Statement of the Problem
A study on the effectiveness of inventory control system with reference to the challenges of
manual inventory management system & problems that exist when demand is nonstationary.
With this research we provide insights to high technology organisation with respect to
inventory management decisions, and identifies factors that lead the high technology
organisation to adopt inventory postponement over inventory speculation. This paper
examines the relative importance of the inventory management decisions made by the high
technology organisation, and the implications these decisions have on the third party logistics
provider and the impact this has on the consumer.
Significance and need for the Study
The aim of this research is to design a computerized inventory management system
to implement the supply products data on the computerized inventory management system.
(i) To determine the inventory management approach of high technology organisations and
the relative importance of the inventory management approaches adopted by the high
technology organisation
(ii) To examine the implications these approaches have on the third party logistics provider
(iii)To examine the implications these approaches have on the consumer.
Research Questions
The research questions for this study will be
1. What are challenges associated with manual inventory management?
2. Is there a significant difference between any problems relating to inventory management
on non-stationary demands?
3. What is the effect of inventory management decisions on different industries including
manufacturing, oil, etc.?

Chapter-III Research Framework of the Study

Assumptions

All research studies make certain assumptions.

The desired framework shows various independent variables and dependent variables.the
relation between the variables is also shown.

Technology
adopted by
Organizations
Forecasting
demand

Effectiveness of Inventory
Management Decisions

Safety stock
quality &
warranty
DEPENDENT VARIABLE
INDEPENDENT VARIABLES
From the above literature review the following hypothesis have been developed.
H0: Null Hypothesis Effectiveness of Inventory Management Decisions
does not depend on any variables.
H1: There is a significant relationship between the Technology adopted by
Organizations and Effectiveness of Inventory Management Decisions.
H2: There is a valid relationship between Forecasting demand and
Effectiveness of Inventory Management Decisions.
H3: There is a significant relationship between Safety stock quality &
warranty and Effectiveness of Inventory Management Decisions.