Analysis of Inventory Management of Selected Plastic Industries in Manipur

Abstract

Inventory occupies a vital position in the structure of working capital as it constitutes the major part of current assets. Maintaining inventories is necessary to every business enterprises since without inventories the operating cycle of the firm is not completed. The importance of inventory management is reflected in the profitability and liquidity of the firm. Most of the financial managers spent their valuable time in managing current assets and current liabilities of the firm. The effective control of inventories helps in achieving better operational results and reduces investment in working capital. Maintenance of adequate inventory is necessary in order to protect the business from adverse effects in times of emergencies. This paper focuses attention on the importance of inventory management and evaluates the performance in the sphere of size of inventory, growth of inventory and adequacy of inventory in the selected plastic industries in Manipur.