Science Journal of Business and Management
Volume 8, Issue 2, June 2020, Pages: 102-105
Received: Nov. 27, 2019;
Accepted: Jan. 4, 2020;
Published: Jun. 23, 2020
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Komati Durga Prasad, ICFAI Law School, ICFAI Foundation for Higher Education, Hyderabad, India
Soofi Asra Mubeen, Department of Management, Higher College of Technology, Muscat, Oman
Banda Rajani, Department of Management, Chaitanya Deemed to Be University, Warangal, India
At the enterprise level, inventory holding assumes significance importance, as inventories represent an oversized proportion of the entire assets of the many issues. Proper control over inventories provides the management with flexibility in making purchases systematically rather than buying strictly according to the production schedule and hand to mouth supplies. The major drawback of internal control is to maximize profitableness by reconciliation investment price of materials against what’s needed to sustain level operations. The purpose of this paper is to study the status of inventory holding the Medium and Scale Enterprises. An attempt is also made to test the optimality of inventory holding in these enterprises concerning the cost of sales by applying simple regression models For testing the optimality of inventory holding in relationship cost of sales, correlation coefficient, coefficient of determination (R-square), F-test through ANOVA, regression coefficients and their standard errors, values of t-statistics and their P-values have been computed. The analysis reveals that Medium and Light Engineering Central Public Enterprises could reduce the inventory holding in terms of the number of days of consumption, cost of production and cost of sales.
Komati Durga Prasad,
Soofi Asra Mubeen,
Inventory Model for Medium and Small Scale Enterprises, Science Journal of Business and Management.
Vol. 8, No. 2,
2020, pp. 102-105.
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