A

PROJECT REPORT
ON
INVENTORY MANAGEMENT
AT
SUJANA METAL PRODUCT LIMITED
Project submitted in partial fulfillment for the award of then degree of
MASTER OF BUSINESS ADMINISTRATION

Osmania University, Hyderaabad-500007

Submitted by

POTHULAAJAY

2129-23-672-254

MBA Ⅱ YEAR Ⅱ SEMESTER

Aurora’s PG College (MCA)

Approved by AICTE and Affiliated to Osmania University

Nampally, Hyderabad-500001

www.apgcm.ac.in

Academic Batch:2023-2025.
 STUDENT DECLARATION

I hereby declare that this Project Report title “A PROJECT REPORT ON

INVENTORY MANAGEMENT AT SUJANA METAL PRODUCT
LIMITED” submitted by me to the Department of Business Management, O.U.
Hyderabad, is a Bonafide work undertaken by me and it is not submitted to any
other University or Institution for the award of any degree diploma/certificate or
published any time before.

POTHULA AJAY

Name of the student Signature of the student

Date:

Place:
 AURORA’S PG COLLEGE(MCA)
Approved by AICTE and Affiliated to Osmania University
Nampally, Hyderabad- 500001

CERTIFICATE

This is to Certify that POTHULA AJAY bearing Hall Ticket No 2129-23-672-254 is a

Bonafide student of Aurora’s PG College (MCA), Nampally in Masters of Business
Administration. This project titled “A PROJECT REPORT ON INVESTMENT
MANAGEMENT AT SUJANA METAL PRODUCT LIMITED” which is being
submitted in partial fulfilment of the requirement for the award of MBA program of
Department of Business Management of Osmania University, Hyderabad was carried
out under my guidance. This has not been submitted to any other University or
Institution for the award of any Degree/Diploma/Certificate.

Internal Guide External Examiner

Head of the Department Principal

 ACKNOWLEDGEMENT

I take this opportunity to extend my profound thanks and deep sense of gratitude to the
authorities of Aurora’s PG College (MCA) Nampally, Hyderabad for giving me the
opportunities to undertake this project work in their esteemed organization. My sincere
thanks to Principal, Head of Department and my project guide Ms. CH. Vasantha for the
kind encouragement and constant support extended in of this project work. I am also
thankful to all those who have incidentally helped me, through their valued guidance, co-
operation and unstinted support during the course of my project.

POTHULAAJAY
2129-23-672-254
 ABSTRACT

This project explores the inventory management practices of a manufacturing

organization, focusing on the evaluation and optimization of existing systems. The
study examines key inventory control techniques such as ABC analysis, Economic
Order Quantity (EOQ), Just-in-Time (JIT), and FSN analysis. It also assesses the
effectiveness of systems like reorder level planning, safety stock management, and
ERP-based tracking. Through data analysis and performance evaluation, the project
identifies inefficiencies related to overstocking, stockouts, and lead time variability.
Recommendations are proposed to enhance forecasting accuracy, supplier
coordination, and warehouse automation. The findings underscore the importance of
strategic inventory management in minimizing costs, improving productivity, and
ensuring seamless production flow.
 TABLE OF CONTENT
INDEX

S.NO CHAPTERS PAGE.NO

I LIST OF TABLES
II LIST OF FIGURES
1 CHAPTER-I
1.1 INTRODUCTION 1-5
1.2 NEED OF THE STUDY 6
1.3 SCOPE OF THE STUDY 7
1.4 OBJECTIVES OF THE STUDY 8
1.5 LIMITATIONS OF THE STUDY 9

2 CHAPTER-II
2.1 THEORETICAL FRAMEWORK 10-15
2.2 REVIEW OF LITERATURE 16-21
3 CHAPTER-III

3.1 RESEARCH METHODOLOGY 22-24

4 CHAPTER-IV
4.1 INDUSTRY PROFILE 25-33
4.2 COMPANY PROFILE 34-40
5 CHAPTER-V
5.1 DATA ANALYSIS AND FINDINGS 41-56
6 CHAPTER-VI

6.1 CONCLUSION 57
6.2 SUGGESTIONS 58
BIBLIOGRAPHY 59-60
 LIST OF TABLES

S.NO TABLES PAGE.NO

5.1 Average Value of Inventory at Closing Stock (₹ in Lakhs) 41

5.2 Economic Order Quantity (EOQ) vs Actual Purchase 42

Quantity
5.3 Inventory Holding Cost Before and After EOQ (₹ Lakhs) 43

5.4 ABC Classification of Raw Materials 44

5.5 Employee Feedback on Inventory System 45

5.6 Monthly Raw Material Consumption (Units) 46

5.7 Inventory Turnover Ratio (ITR) Comparison 47

5.8 Lead Time for Raw Materials (Days) 48

5.9 Stock-Out Incidents Per Quarter 49

5.10 Safety Stock and Reorder Point Analysis 50

5.11 Year-wise Procurement Cost of Key Materials (₹ in Lakhs) 51

5.12 Inventory Discrepancy Report (Physical vs System Count) 52

5.13 Cost Savings After ABC-VED Integration (₹ in Lakhs) 53

5.14 Consumption Rate of Fast-Moving Items 54

5.15 Supplier Performance Scorecard 55

 LIST OF FIGURES

S.NO TABLES PAGE.NO

5.1 Average Value of Inventory at Closing Stock (₹ in Lakhs) 41

5.2 Economic Order Quantity (EOQ) vs Actual Purchase 42

Quantity
5.3 Inventory Holding Cost Before and After EOQ (₹ Lakhs) 43

5.4 ABC Classification of Raw Materials 44

5.5 Employee Feedback on Inventory System 45

5.6 Monthly Raw Material Consumption (Units) 46

5.7 Inventory Turnover Ratio (ITR) Comparison 47

5.8 Lead Time for Raw Materials (Days) 48

5.9 Stock-Out Incidents Per Quarter 49

5.10 Safety Stock and Reorder Point Analysis 50

5.11 Year-wise Procurement Cost of Key Materials (₹ in Lakhs) 51

5.12 Inventory Discrepancy Report (Physical vs System Count) 52

5.13 Cost Savings After ABC-VED Integration (₹ in Lakhs) 53

5.14 Consumption Rate of Fast-Moving Items 54

5.15 Supplier Performance Scorecard 55

 CHAPTER-I

INTRODUCTION
 INTRODUCTION
Financial Management is concerned with the duties of the finical manager in the business
firm. Financial managers actively manage the financial affairs of any type of business,
namely financial and non-financial, private and public, large and small, profit seeking and
non-profit. They perform such varied task, as budgeting, financial forecasting, cash
management, credit administration, investment analysis, funds management and
inventory management. A term inventory refers to the stock file of the products a firm is
offering for sale and the components that make up the product. In other words, inventory
is composed of assets that will be showed in future in the normal course of the business
operations. The assets which firms store as inventory in anticipation of need are.The raw
material inventory contains item that are purchased by the firm from other and are
converted into finished goods through the manufacturing (production) process. They are
an important input of the final product. The working process inventory consists of items
currently being used in the production process. They are normally semi finished goods
that are at various stages of production in a multi stage production process. A finished
goods represented final or completed products which are available for sale .The inventory
of such goods consists of items that have been produced but are yet be sold.
Inventory, as a current asset, differs from other current assets because only financial
managers are not involved. Rather all the functional areas, finance, marketing, production,
and purchasing are involved. The views concerning the appropriate level of inventory
would differ among the different functional areas. The job of the financial manger is to
reconcile the conflicting view points of the various functional areas regarding the
maximizing the owners wealth. Thus, inventory management, like the management of
other current assets , should be related to the overall objective of the firm. It is in this
context that the present chapter is devoted to the main elements of inventory management
from the view point of financial management.
The objective of inventory management is explained in some detail sections. Section two
is concerned with inventory management techniques. Attention is given here to basic
concepts relevant to the management and control of inventory. As a matter of fact, the
inventory management techniques are a part of production management. But a familiarity
with them is of great help to the financial managers in planning and budgeting inventory.
Inventory management refers to the process of storing, ordering, and selling of goods and
services. The discipline also involves the management of various supplies and processes.

1
One of the most critical aspects of inventory management is managing the flow of raw
materials from their procurement to finished products. The goal is to minimize overstocks
and improve efficiency so that projects can stay on time and within budget. The proper
inventory management technique for a particular industry can vary depending on the size
of the company and the number of products needed. For instance, an oil depot can store a
huge inventory for a long time. Or for businesses that deal in perishable goods, such as
fast-fashion items, keeping on top of your inventory can be very costly.One way to account
for inventory is by grouping it into four categories: first-in-first-out, last-in-first-out,
weighted-average, and first-in-first-out. Raw materials are the components used by a
company to make its finished products.
Depending on the type of company that it is dealing with, different inventory
management methods are used. Some of these include JIT, material requirement
planning, and days sales of inventory.Other methods of analyzing inventory can also be
used depending on national and local regulations. For instance, the SEC requires public
companies to report the existence of a so-called LIFO reserve.Having frequent inventory
write-offs can be a red flag that a company is struggling to sell its finished products or is
prone to inventory obsolescence.
In today's digital era, cloud computing has revolutionized data storage and accessibility,
offering users convenient and scalable solutions. However, as more individuals and
organizations migrate their sensitive data to cloud environments, the associated security
risks have grown significantly. This project, titled “Secured Cloud Storage Using
Hybrid Cryptography,” aims to address critical concerns such as data confidentiality,
integrity, and access control.
The system introduces a robust security framework that integrates hybrid cryptographic
techniques, combining both symmetric and asymmetric encryption algorithms, to ensure
comprehensive data protection. Through this method, the system leverages the speed and
efficiency of symmetric key encryption while incorporating the security strengths of
asymmetric algorithms to manage key exchange securely.
A key feature of the system is its multi-layered authentication process, where users
must register with unique credentials and pass a validation step using a username and
password. Upon successful authentication, users are permitted to upload and download
files securely, with each action involving encryption or decryption operations.
Furthermore, the platform emphasizes user privacy and data ownership, ensuring that
only authorized users can access the stored content. The use of hybrid cryptography not

2
only safeguards data in transit and at rest but also counters prevalent threats like data
breaches, man-in-the-middle attacks, and unauthorized access.
By implementing this approach, the project contributes to a safer and more reliable cloud
storage environment, making it suitable for applications in personal, enterprise, and
government-level data handling.
In the evolving landscape of digital technologies, cloud computing has emerged as a
pivotal platform for data storage, processing, and accessibility. Organizations and
individuals increasingly rely on cloud services due to their cost-effectiveness, scalability,
and ubiquitous access. However, this growing dependence has concurrently elevated
concerns around data privacy, security breaches, and unauthorized access, making
cloud data protection a crucial area of research and development.
The project “Secured Cloud Storage Using Hybrid Cryptography” proposes an
innovative approach to securing cloud-stored data by leveraging a hybrid cryptographic
framework. Traditional security mechanisms often fall short when addressing complex
and multi-dimensional threats in cloud environments. Hybrid cryptography, which
combines symmetric encryption algorithms like AES (Advanced Encryption Standard)
for fast data encryption with asymmetric algorithms like RSA (Rivest–Shamir–
Adleman) for secure key exchange, provides a balanced and more secure solution.
This system ensures that even if communication channels are compromised, the data
remains unintelligible without the correct cryptographic keys. Encryption is applied not
only during data transmission but also while the data is at rest in the cloud, enhancing
end-to-end security.
The system includes a user authentication mechanism, where each user must register
and authenticate using credentials before gaining access to the cloud services. Once
authenticated, users can securely upload or download files, with all transactions being
encrypted and decrypted on the client side to ensure that the cloud provider or any third
party has no visibility into the actual data content.
Moreover, the solution is designed to be user-friendly and adaptable to various use cases
such as:
• Corporate document storage
• Medical records management
• Educational resources sharing
• Personal file backup and archiving
This approach not only secures sensitive information but also builds user trust in cloud

3
technologies by offering transparency and control over data. By integrating security at
the architecture level, this project demonstrates how modern encryption techniques can
be practically applied to mitigate risks in real-world cloud storage systems.
In the modern digital ecosystem, cloud computing has become indispensable,
transforming the way data is stored, accessed, and managed. Enterprises, governments,
and individual users alike leverage cloud platforms to reduce infrastructure costs,
enhance collaboration, and improve scalability. However, despite these advantages, the
security of cloud data continues to pose a major challenge, especially in an age where
cyber threats, data breaches, and identity theft are alarmingly prevalent.
The objective of this project, titled “Secured Cloud Storage Using Hybrid
Cryptography,” is to bridge the gap between cloud convenience and data security. It
proposes an architecture that combines the strengths of symmetric and asymmetric
encryption in a hybrid cryptographic model to deliver both performance and robust
protection. While symmetric encryption ensures fast processing of large data files,
asymmetric encryption secures the key exchange process, preventing unauthorized users
from accessing or tampering with sensitive data.
The significance of this solution is amplified in the context of regulatory compliance
frameworks such as GDPR (General Data Protection Regulation), HIPAA (Health
Insurance Portability and Accountability Act), and ISO/IEC 27001, which mandate
strict controls over data privacy and security, especially for organizations handling
personal or sensitive information.
Key highlights of the proposed system include:
• Secure User Authentication: Prevents impersonation and unauthorized access
by verifying credentials before granting data access privileges.
• Encrypted Data Transactions: Ensures confidentiality and integrity during file
upload, storage, and download processes.
• Key Management: A secure mechanism for generating, distributing, and storing
encryption keys without exposing them to cloud providers or malicious actors.
• Usability and Accessibility: Designed to offer seamless and secure user
experience without requiring deep technical knowledge.

Furthermore, the system offers scalability, enabling easy integration into larger
organizational
infrastructures and cloud platforms like AWS, Azure, or Google Cloud. Its

4
adaptability makes it suitable for various industries such as healthcare, finance,
education, and defense, where data protection is critical.
From an academic standpoint, this project provides a foundation for further research
into post-quantum cryptography, zero-knowledge proofs, and blockchain-based
cloud security. In practical applications, it highlights how cryptography can be
seamlessly embedded into user-facing cloud applications to provide secure and
compliant data storage solutions.
In conclusion, this project not only demonstrates the technical feasibility of hybrid
encryption in a cloud context but also addresses a pressing real-world problem by
offering a proactive, multi-layered defense model against ever-evolving cyber threats.

5
 NEED OF THE STUDY
Inventory management is the supervision of a company’s inventory, including the
processes for producing, ordering, storing, and selling products in the market. This
includes managing the warehousing and processing of raw materials, components, and
finished products.Effective inventory management keeps a company organized. It also
provides critical data to help businesses respond to trends, avoid breakdowns in supply
chain management, and maintain profitability. Inventory management impacts production,
warehouse costs, and order fulfillment. Having effective inventory management helps
contain costs and ensure businesses have the correct amount of stock. It also cuts down on
excess inventory. JUst-in-time (JIT) inventory management aims to maximize efficiency
and lower costs by coordinating inventory arrival with the start of production. The goal of
this method is to keep as little inventory on hand as possible and still meet a high
production volume level for the product's demand. To have a successful JIT inventory
business, you’ll need proper forecasting of needs and close relationships with dependable
suppliers.A company's inventory is one of its most valuable assets. In retail,
manufacturing, food services, and other inventory-intensive sectors, a company's inputs
and finished products are the core of its business. A shortage of inventory when and where
it's needed can be extremely detrimental.it the same time, inventory can be thought of as
a liability (if not in an accounting sense). A large inventory carries the risk of spoilage,
theft, damage, or shifts in demand. Inventory must be insured, and if it is not sold in time
it may have to be disposed of at clearance prices or simply destroyed.

6
 OBJECTIVES OF THE STUDY
• To study about the ordering levels for the important components of inventory.
• To Study understand and measure economic order quantity for the selected
raw material items.
• To study analyze its inventory management methods with the help of ABC
analysis, VED analysis etc.
• To study evaluate the inventory management practices of SUJANA
METAL PRODUCTS LIMITED.
• To study offer suitable suggestions for the improvement of
inventory management practices.

7
 SCOPE OF THE STUDY
Inventory management is a simple concept-don’t have too much stock and don’t have too
little. Since there can be a substantial costs involved in staying above and below the
optimal range, careful inventory management can make a huge difference in the right
balance can be quite a complex and time consuming task without the right technology.
Inventory management is very important for “SUJANA METAL PRODUCTS LTD”.
It enables the business to meet or exceed expectations of the customers by making the
products readily available.The scope of the study includes the ABC Analysis of Raw
Materials, work in progress and finished goods for four financial years. This study provides
insight to the management of high value items and also brings attention of management
towards movement of ‘A’ class items over period of 4 years Inventory management is a
process of tracking the products. This includes all the inventory management until it
reached to the final consumer. it includes finished products manufactured by the company
and the raw material which may be required for production on finished goods.

8
 LIMITATIONS OF THE STUDY
• Detail study about all the material was not possible because of time limit.
• Some of the information was kept confidential by the stories department.
• Study was confined only to the selected components in the stores department.
• To minimise capital investment in inventory by eliminating excessive stocks
• To provide a scientific basis for planning of inventory needs.
• To tiding over the demand fluctuations by maintaining reasonable safety stock.
• To ensure availability of needed inventory for uninterrupted production and
for meeting consumer demand.

9
 CHAPTER-II
REVIEW OF LITERATURE
 THEORETICAL FRAMEWORK
This study is grounded in the Theory of Planned Behavior (TPB), a psychological model
developed by Icek Ajzen that explains how individual behavior is influenced by behavioral
intentions. The TPB is particularly relevant for examining behaviors under volitional control
and shaped by cognitive and social factors, making it suitable for analyzing student behavior
in the context of solid waste management (SWM).

According to the TPB, behavioral intention is the most immediate predictor of actual behavior.
This intention is shaped by three interrelated constructs: attitude toward the behavior,
subjective norms, and perceived behavioral control. Attitude refers to an individual’s positive
or negative evaluation of performing a behavior. In the context of SWM, students who
recognize the environmental and health benefits of proper waste disposal are more likely to
develop favorable attitudes and intentions toward sustainable practices. Subjective norms
involve the perceived social pressures to engage or not engage in a particular behavior. For
students, the expectations of peers, family, and institutional authorities can significantly
influence their waste management behaviors. Observing others engaging in environmentally
responsible actions reinforces a shared sense of responsibility. Perceived behavioral control
relates to a student’s perceived ease or difficulty in carrying out a behavior, shaped by internal
factors such as knowledge and confidence, and external factors like infrastructure and
institutional support. When students believe they have the necessary resources and knowledge,
their likelihood of acting on their intentions increases.

In this study, the TPB framework is applied to assess how students’ attitudes, perceived norms,
and sense of control influence both their intentions and actual practices related to solid waste
management. Findings show that while many students are aware of the consequences of

10
improper waste disposal, fewer consistently engage in behaviors such as recycling or waste
segregation. This gap between awareness and action suggests the need for interventions that
strengthen favorable attitudes through education, workshops, and green campus programs. Peer
and institutional influence plays a vital role, as students are more likely to manage waste
properly when such behavior is modeled and encouraged within their environment. However,
various barriers such as lack of access to labeled bins, unclear guidelines, and inadequate
enforcement hinder their ability to follow through. These issues can be addressed through
improved infrastructure, better communication, and hands-on support, which would enhance
students’ confidence and capacity to manage waste responsibly.

Moreover, the study highlights a clear intention-behavior gap—many students express a

willingness to manage waste properly, but fewer translate that intention into practice. This
underscores the importance of practical, context-sensitive strategies that bridge this gap and
move beyond awareness to real behavioral change. Applying the TPB in this research not only
offers insight into the psychological and environmental factors affecting SWM behavior but
also helps inform targeted interventions. Educational efforts can be aligned to build stronger
attitudes, peer-led campaigns can reinforce social norms, and better infrastructure and training
can enhance perceived behavioral control. Overall, this framework serves as both an analytical
tool and a guide for future policy and program development aimed at promoting sustainable
waste management practices within educational institutions.

This study is grounded in the Theory of Planned Behavior (TPB), a well-established

psychological model proposed by Icek Ajzen. The TPB aims to explain and predict human
behavior by focusing on the factors that influence individual intentions and actions.
Specifically, the theory asserts that behavioral intention is the most immediate and significant
predictor of actual behavior. This intention, in turn, is shaped by three core components:
attitude, subjective norms, and perceived behavioural control.

11
The TPB is particularly relevant in understanding behaviors that are under volitional control,
especially when those behaviors are influenced by social and cognitive factors. In the context
of solid waste management (SWM), where individuals may hold knowledge about the
importance of proper disposal yet fail to act consistently, the TPB provides an ideal framework
for exploring the psychological mechanisms that influence behavior. The theory is useful
because it acknowledges not only the internal cognitive factors that drive individual decision-
making but also the external social pressures and environmental factors that can either enable
or hinder the execution of a behavior.

Attitude refers to an individual’s positive or negative evaluation of engaging in a particular

behavior. In the context of waste management, students' attitudes toward the environment and
waste disposal practices play a significant role in shaping their intentions to engage in
responsible behaviors. For example, students who believe that proper waste management
contributes positively to environmental protection, public health, and community well-being
are more likely to form favorable attitudes toward engaging in sustainable practices such as
waste segregation, recycling, and composting. Therefore, attitude is a key construct because it
directly influences how individuals perceive the outcomes of their actions, which in turn affects
their likelihood of engaging in those behaviors.

Subjective norms, another core component of the TPB, represent the perceived social
pressures to perform or not perform a behavior. For students, these norms are influenced by the
expectations of peers, family, faculty, and the wider community. If students perceive that waste
management is an expected or valued behavior within their social or academic circles, they are
more likely to conform to those social expectations. The influence of subjective norms is
particularly important in educational settings, where peer pressure, institutional policies, and
faculty attitudes can shape students' behaviors. For instance, if a student observes that their
peers and faculty are consistently engaging in sustainable practices like recycling or reducing
waste, they are more likely to perceive that there is a social norm supporting those behaviors.
The more a behavior is endorsed by important social referents, the stronger the subjective norm
becomes, leading to higher intention and, ultimately, actual behaviour.

12
Perceived behavioral control refers to the individual's perception of their ability to perform
the behavior, considering both internal factors such as knowledge and skills, and external
factors like available resources and opportunities. In the case of SWM, students’ perceived
ability to engage in waste management practices is affected by factors such as the availability
of segregated waste bins, clear signage or guidelines for waste disposal, and institutional
support in the form of educational campaigns or waste management infrastructure. If students
feel that they have the necessary resources, knowledge, and institutional backing to manage
waste effectively, they are more likely to perceive a high level of control over their behavior.
This, in turn, increases their intention to engage in sustainable waste management practices and
boosts the likelihood that they will follow through with those intentions.

The application of the TPB to this study allows for an in-depth examination of how these three
constructs—attitude, subjective norms, and perceived behavioral control—interact to influence
students’ intentions and actual behaviors related to solid waste management. The study
suggests that while many students possess a general awareness of the environmental and health
hazards associated with improper waste disposal, only a portion of them actively engage in
sustainable waste management practices, such as segregating waste or recycling. This indicates
that there is a disconnect between students’ attitudes (which may be favorable) and their
behaviors (which may not reflect these attitudes). This gap underscores the need for
interventions that can bridge this divide and promote positive behaviour change.

13
One of the key findings from this study is the significant role of attitude in shaping students’
intentions toward waste management. The data reveals that students who recognize the
importance of waste management and believe that proper disposal contributes to environmental
conservation and public health are more likely to form positive attitudes. However, despite
these favorable attitudes, many students still fall short in engaging in sustainable practices. This
suggests that education and awareness campaigns can play a pivotal role in reinforcing attitudes
and motivating students to act in accordance with their beliefs.

The study also highlights a significant intention-behavior gap. Although a majority of

students express a strong intention to engage in proper waste management, fewer actually
follow through with those intentions. This gap points to the need for practical interventions that
focus on removing barriers, providing resources, and reinforcing the intended behavior through
social support and institutional policies. While awareness is important, it is clear that additional
strategies are necessary to convert intentions into concrete actions.

By applying the TPB, this study identifies several practical implications for improving waste
management behaviors among students. Educational programs can be developed to strengthen
positive attitudes toward waste management by highlighting its personal and environmental
benefits. Social campaigns and peer-led initiatives can help reinforce pro-environmental
norms, while institutional support can enhance students’ perceived control by improving waste
management infrastructure, providing clear instructions, and offering training. Additionally,
faculty and staff participation in waste management initiatives can serve as powerful role
models, helping to create an institutional culture that supports sustainable practices.

In summary, the Theory of Planned Behavior provides a robust framework for understanding
the factors that shape students’ solid waste management behaviors. By exploring the interplay

14
between attitudes, subjective norms, and perceived behavioral control, this study offers
valuable insights into how to promote sustainable waste management practices in educational
institutions. The findings underscore the importance of addressing psychological, social, and
environmental factors to foster long-term behavioral change and contribute to a more
sustainable future.

15
 REVIEW OF THE LITERATURE

• Srinivas et al. (2010)

o applied Naïve Bayes, Decision Trees, and Neural Networks to a heart disease
dataset and found that Naïve Bayes outperformed others in terms of prediction
accuracy. Similarly, Dey et al. (2018) emphasized the importance of IoT-
integrated healthcare systems and highlighted the role of smart data sensing in
improving prediction models.

• Gudadhe et al. (2010)

o proposed a Support Vector Machine (SVM) and Artificial Neural Network

(ANN) based Decision Support System, which demonstrated high reliability in
identifying patterns in clinical datasets. This was further validated by Kumar
and Sahoo (2012), who analyzed heart disease data using neural networks and
confirmed their efficiency in modeling complex, non-linear relationships
between variables.

• Amin et al. (2013)

o introduced a hybrid Genetic Neural Network (GNN) approach for classifying

heart disease based on risk factors like cholesterol level, blood pressure, and
age. The genetic algorithm enhanced the learning capability of the neural
network, showing improved accuracy compared to standalone models.

• Thakur and Juneja (2020)

o adopted ensemble learning techniques such as Random Forest and Gradient

Boosting to address limitations of single classifiers. Their results showed that
ensemble models could significantly boost predictive performance and reduce
overfitting.

16
• Haider and Abbas (2021)

provided a comprehensive review of popular ML classifiers for heart disease

prediction, including Logistic Regression, K-Nearest Neighbors (KNN), and
SVM, concluding that model performance varies depending on the dataset and
feature selection strategy.

• Patel and Tejal (2015)

applied data mining techniques to heart disease datasets and found that Decision
Tree classifiers performed well due to their interpretability and low
computational cost. They emphasized the need for proper data preprocessing to
eliminate noise and redundancy.

• Jahmunah et al. (2019)

expanded the scope of disease prediction by incorporating ECG signals into ML

models. Their review highlighted how deep learning can process complex
physiological signals, potentially leading to real-time diagnosis systems.

• Khan et al. (2021)

offered future perspectives by integrating Artificial Intelligence (AI) with Big

Data in cardiology. Their study suggests that hybrid models combining
traditional ML with Deep Learning and Natural Language Processing (NLP)
could become standard tools in predictive healthcare.

• Chen et al. (2011)

developed a Heart Disease Prediction System (HDPS) using decision tree

algorithms and focused on the importance of feature selection. The system was
able to produce efficient and accurate results for early diagnosis, stressing the
role of domain expertise in selecting meaningful clinical features.

17
• Brent D. Williams & Travis Tokar (2008)

Reviewed inventory management research in logistics journals from 1976

onward, identifying themes such as the integration of logistics and inventory
decisions, and highlighting collaborative inventory models as a promising area
for future research.

• Xin Chen, Melvyn Sim, David Simchi-Levi & Eng Sun (2007)

Introduced a model incorporating risk aversion into inventory management. The

study showed that optimal inventory policies remain effective even when
accounting for uncertainty and risk preferences.

• Plinere, D. & Borisov, A. (2015)

Explained the role of inventory management in minimizing overstock and

stockouts. The study emphasized that improved inventory practices directly lead
to cost reduction and efficiency in operations.

• Jose, T., Jayakumar, A. & Sijo, M. T. (2013)

Analyzed inefficiencies due to the absence of EOQ in inventory systems. They

concluded that failure to apply EOQ principles can cause excess stock and
increased holding costs.

• Mohamad, S. J. A. N., Suraidi, N. N., Rahman, N. A. A. & Suhaimi, R. D. S. R.

(2016)

Focused on inventory efficiency through accurate demand forecasting,

managing scattered inventories, and implementing cycle counting techniques.

18
• Sunitha, K. V. (2012)

Emphasized the importance of skilled inventory managers and effective

inventory management software in optimizing inventory levels, improving ROI,
and boosting customer satisfaction.

• Atnafu, D. & Balda, A. (2018)

Explored how inventory management practices can lead to competitive

advantage. The study found a strong positive correlation between effective
inventory control and improved organizational performance.

• Hong Shen, Qiang Deng, Rebbaca Lao & Simon Wu (2016)

Challenged the belief that less inventory is always better. Their research
emphasized that maintaining optimal inventory levels improves overall supply
chain efficiency.

• Charles Dominick (2012)

Outlined the significance of inventory control metrics such as safety stock,

EOQ, and reorder points to maintain steady inventory flow and cost-
effectiveness.

• Xin Chen & Melvyn Sim (2004)

Revisited classical inventory theories with a focus on risk-neutral and risk-

averse inventory planning, providing solutions for dealing with unpredictable
demand and financial exposure.
• Kumar, R. & Singh, M. (2022)

Investigated the impact of digital technologies on inventory management,

specifically focusing on the integration of Internet of Things (IoT) and Artificial
Intelligence (AI). Their study found that real-time tracking and predictive
19
 supply chain processes but also provides actionable insights for better decision-
making.

• Ramaa, A., Subramanya, K. N., & Rangaswamy, T. M. (2012)

The authors studied inventory management in Indian manufacturing firms and

found issues like stockouts, inaccurate records, and long lead times due to
manual systems. They stressed the need for ERP technology to streamline
processes, enhance supply chain visibility, and enable better decision-making.
Their findings highlight that digital transformation is key to improving
efficiency and reducing costs.

• Ghosh, P. K. (2003)

Ghosh discussed the significance of scientific inventory control in maintaining

uninterrupted production and minimizing costs. He argued that poor inventory
planning leads to capital blockage and reduced profitability. His work
emphasized the role of EOQ (Economic Order Quantity) and safety stock in
maintaining an optimal inventory level that balances demand variability and
lead time fluctuations.

• Wild, T. (2002)

Wild explored modern inventory management principles in his book Best

Practice in Inventory Management. He examined the application of Just-in-
Time (JIT), ABC analysis, and demand forecasting to reduce excess inventory
and improve responsiveness. Wild emphasized that aligning inventory strategy
with business goals is critical to staying competitive, especially in globalized
markets.

20
• Silver, E. A., Pyke, D. F., & Peterson, R. (1998)

In their widely cited book Inventory Management and Production Planning and
Scheduling, the authors provided detailed models and quantitative techniques
for effective inventory control. They discussed deterministic and probabilistic
inventory models, highlighting how mathematical approaches can optimize
order quantity, reorder points, and minimize total inventory costs.

• Chopra, S., & Meindl, P. (2016)

o
Chopra and Meindl, in their book Supply Chain Management: Strategy,
Planning, and Operation, analyzed how inventory decisions affect overall
supply chain performance. They introduced frameworks for multi-echelon
inventory systems and emphasized the strategic role of inventory in balancing
service level and cost. Their work stresses the need for collaboration and
integration across the supply chain to optimize inventory levels.

21
 CHAPTER-III

RESEARCH METHODOLOGY
 RESEARCH METHODOLOGY

NATURE OF THE STUDY

It seeks to understand and evaluate consumer perception and satisfaction regarding electric
two-wheelers by conducting a structured survey among a selected sample population. The
research focuses on identifying key factors that influence customer satisfaction and purchasing
decisions, such as product performance, price, environmental impact, and brand preference. By
analyzing the data collected through questionnaires, the study aims to establish statistical
relationships between various demographic and behavioral variables. This helps in gaining
deeper insights into consumer attitudes, preferences, and expectations from electric two-
wheeler products in the current market scenario.

DATA COLLECTION

To understand the current attendance system at RR Institutions, direct interactions were carried
out with the faculties to gather insights on their daily attendance tracking methods and the
associated challenges. The primary aim was to identify gaps and inefficiencies in the existing
process and determine how a software-based solution could help.

Primary Data: Collected through observation and interaction with end-users and stakeholders
within the organization. The needs and workflow processes were gathered directly to
understand the manual approval process.

Secondary Data: Sourced from internal documents, existing SharePoint data, Microsoft
documentation, and previous organizational process documents.

Data collection is a fundamental aspect of any research study as it forms the basis for analysis,
interpretation, and decision-making. In this study on inventory management at Sujana Metal
Products Limited, both primary and secondary data were collected to ensure a balanced and
comprehensive approach. Primary data was obtained through structured interviews with store
managers, purchase officers, and warehouse personnel. A detailed questionnaire was designed
to gather information about order frequency, stock levels, lead time, and challenges faced in
inventory control. Observational methods were also employed to directly examine storage
conditions, stock movement, and documentation practices. Secondary data was sourced from
company records such as purchase orders, stock registers, inventory control reports, and
previous audit findings. Additionally, published materials, including industry reports,

22
textbooks, and research journals, were reviewed to understand best practices and theoretical
perspectives. The use of both quantitative and qualitative data allowed for triangulation,
ensuring greater reliability and reducing bias in the findings. This multi-pronged approach
facilitated a nuanced understanding of the company’s inventory practices and helped in
identifying gaps and recommending improvements.

For this research, a mixed-method approach to data collection was adopted to capture both
factual and contextual insights into the company’s inventory management system. Primary data
was collected through structured interviews with store personnel, physical observation of
inventory operations, and employee feedback. These interactions provided valuable real-time
insights into how inventory is managed on the ground. Secondary data was drawn from
company records, stock registers, audit reports, and reference materials related to inventory
control techniques. Together, these sources offered a holistic view, allowing for accurate
evaluation and informed suggestions for improvement.

23
TOOLS AND ANALYSIS

ABC Analysis
ABC Analysis classifies inventory into three categories based on value and usage. ‘A’ items
are high-value and need strict control, ‘B’ items are moderate in value, and ‘C’ items are low-
value but high in volume. This helps focus efforts and resources on the most critical items.

VED Analysis
VED Analysis organizes items by criticality: Vital items are essential for operations,
Essential items are important but not urgent, and Desirable items have minimal impact. It
ensures key materials are always available.

Economic Order Quantity (EOQ)

EOQ helps determine the ideal quantity to order by balancing ordering and holding costs. It
reduces excess stock, prevents shortages, and improves cost-efficiency.

Inventory Turnover Ratio (ITR)

This ratio shows how often inventory is sold or used within a period. A higher ratio indicates
better inventory usage, while a lower one may point to overstocking or slow movement.

Safety Stock Analysis

Safety stock is the extra inventory held to avoid stockouts during delays or demand spikes. It
acts as a buffer to ensure smooth operations.

Reorder Level Calculation

Reorder level is the stock point at which a new order should be placed. It’s based on average
usage and lead time, helping maintain continuous supply without interruptions.

24
 CHAPTER-Ⅵ

INDUSTRY PROFILE & COMPANY PROFILE

 INDUSTRY PROFILE
Steel is versatile and indispensable item. Iron and steel comprises one of the most important
inputs in all sources of economy. This industry is both a basic and a core industry. The economy
of any nation depends on a strong iron and steel industry in that nation history has shown that
countries having a strong potentiality for iron steel products have played a predominant role in
the advancement of civilization in the world. The great investment that has gone in to the
fundamental research in iron and steel industry has helped both directly and indirectly many
modern fields of today’s science and technology. The rapid growth and development of steel
capacity is indeed a logical corollary of any program of rapid industrialization. Steel forms the
backbone of the economy, especially of any industrial country. It has backward and forward
linkages, which makes steel indispensable. The vital role, which steel industry play in the
growth and development of nation’s economy, is undeniable. The important of steel in
economic activities cannot be overemphasized. Besides, steel provides large employment
directly and it acknowledgement that for every direct steel employee, 15 thousand opportunities
are indirectly in the linkage industries. Steel, a core sector industry, emerged as the backbone
for industrialization in most of the countries. The index for steel production and for capita
consumption of steel in a country has becoming measuring scales of economic growth and
reconstruction of a nation. Steel occupies strategies position in 5efforts to attain a solid and self
reliant industry base. In spite of the iron and steel industry being a capital, labor energy
intensive industry, subjected to rapid, up-predations the astonishing fact is that, 85% of the
metals produced in the world, is accounted by steel alone. Hence, steel is identified as an
international industry, with global focus on steel making and steel technologies, emphasizing
quality, production, and cost reductions.

Introduction

The report appears to be a comprehensive academic study prepared as part of an MBA

requirement. Although the title emphasizes inventory management at Sujana Metal Products
Limited, its broader context situates the study in a competitive industrial sector—in this case,
metal products manufacturing. The introduction lays out the following overarching ideas
The study sets the stage by acknowledging the significance of efficient inventory management
for companies operating within the metal products industry. In this industry, timely
procurement, production, storage, and distribution of raw materials and finished goods are
crucial for maintaining competitive advantage and ensuring profitability. The broader industry

25
profile reflects a mature industrial sector with challenges and opportunities arising from global
demand, raw material price fluctuations, and technological innovations.

Significance to the Business:

An effective inventory management system is critical in minimizing wastage and optimizing

operational cost structures. The study underscores that this area of focus is essential for
ensuring sustainability and efficient resource allocation in manufacturing operations. Given
that Sujana Metal Products Limited is within this industry, the research highlights the need to
align inventory practices with market dynamics and technology adoption, ultimately
contributing to operational excellence.

Scope of the Study:

While the research is centered on a specific company, it also captures industry-wide trends and
benchmarks. It examines best practices, identifies inefficiencies in traditional methods, and
outlines the impact of modern techniques (including computerized systems) on inventory
accuracy, cost savings, and service levels. This context is important in understanding how
individual companies can adapt to broader market trends.

FUTURE DEMAND

Indian steel industry plays a significant role in the country’s economic growth. The major
contribution directs the attention that steel is having a stronghold in the traditional sectors, such
as infrastructure & construction, automobile, transportation, industrial applications etc.
moreover, steel variant stainless steel is finding innovative applications due to its corrosion
resistive property. Indian is the fifth largest steel producer at the global front and struggling to
become the second producer in the coming years. “Indian steel industry outlook to 2012” is an
outcome of an extensive research and conceptual analysis of the Indian steel industry. The
report provides detail information on steel industry in India. The report also presents an insight
into the future outlook of various vertical industry segments, including automotive, aerospace,
margin, consumer durables, power, railways, telecom, and housing. The report classifies the
finished steel product market into two categories- Alloy and Non-Alloy. The report also covers

26
information on industry-wise steel demand, overall Steel consumption, production, and trading
market. Besides, it provides industry forecast for differ market segment. Steel authority of
India(SAIL)LTD has planned to enhance its hot metal production capacity from the level of
13.82 million tons per annum (MTPA) to 23.46 MTPA under its current phase of expansion
and modernization to be which is expected to be completed by financial year 20122013. SAIL
would increase its capacity further to 26.18 MTPA. The indicative investment for current phase
is about US$ 13.28 billion. Additionally, approximately US$ 2.21 billion has been earmarked
for modernization and expansion of sail mines. The steel consumption in the country will surge
at a CAGR of around 7% during FY 20122014.

PRESENT DEMAND IN INDIA:

India’s annual steel demand is seen rising by 10 percent in the fiscal year to march 2011, helped
by higher spending on infrastructure.India’s budget for 2010/11, which was announced by
finance Minister Pranab mukherjee proposed to invest 1.73 trillion rupees on infrastructure, a
measure cheered by the steel industry. Steel production in the 2010/11(April-March) fiscal year
is likely to be 65 million tons, compared to 60-61 million tons of in the current year. India has
consumed 63.55 million tons of steel in 2009-10 compared to 58.28 million tons in the previous
year. With nearly 80 million tons per annum installed capacity, India is currently the world’s
fifthlargest producer of crude steel.

PAST DEMAND IN INDIA:

Moreover, the performance of the industry largely depends on the country’s economic growth,
and the stable government at the centre will give more emphasis to the infrastructure
development. Programs announced by the government earlier will be accelerated. Also, the
growth in automobile sector will spur the steel demand. The steel demand significantly
slumped during the third quarter of FY 2008-09 ending December 2008, having seen three
years of average 15%-20% growth. However, the fourth quarter which ended March 31, 2009
posted an increase of 3.8% compared to the corresponding quarter previous year i.e. the quarter
ending March 31, 2008. The joint plant committee, a data dissemination body under the central
Ministry of steel, has recently released the steel industry’s statistics showing that the steel
production stood at 56.4 million Metric Tons in the year ended March 2009 against the revised
output of 56.1 million Metric tons in FY 2007-08.

27
GLOBAL STEEL SCENARIO:

It is interesting to note that the world’s total crude steel production grew at a much slower rate
during the first half of the century and the growth rate picked up at a significance rate after II
World War, with a meager production level of 28.3 MT in 1900, the production crossed the
first hundred mark in 1927 (101.8 MT). The production in 1943 was 159.6 MT and then it
sharply fell to 111.6 MT in 1946. Then the growth 529.8 MT in 1968, 650.7 MT in 1972, 703.8
MT in 1974 and the highest ever production of 764.4 MT in 1979. During the 70’s it witnessed
one of the most severe economic crisis on account of petroleum oil. This had a pronounced
impact on overall economy of the world and particularly steel industry. The world production
of steel started declining to 644.4 MT in 1982. The production improved to 683.7 MT in 1983,
710.2 MT in 1984, 719.1 MT in 1985, and 714.2 MT in 1986.

GLOBAL PERPECTIVE IN STEEL:

World Demand: Total demand for steel in the world is expected to grow at an annual rate of
1.7% between 1935 and 2000 according to a study by chase econometrics. According to this
estimate, total demand in the year 2000 is expected to be 913 MT of crude steel. The world
growth rate of 1.7% per annum disguises dramatic differences in steel demand growth. Within
the non-socialistic world, steel demand in advance industrial countries at a whole are expected
to grow at 0.6 % annual rate following a 2.2% annual rate between 1974 and 1984. Steel

28
demand in less developed countries as a whole is expected to grow at a 5.5% annual rate up to
2000 following a 3.1% annual growth rate between 1974 and 1984. Within the centrally
planned economies category, the Eastern Europe erstwhile USSR region may have a 0.3%
annual steel demand growth during the period 1974–84. Steel Demand rate up to the end of
this century after a 7.8% per annum growth during 1974 – 84.

THE INDIAN STEEL SCENARIO:

Steel consumption in India has gone up during the past decade from the level of 10 MT (1993
94). Similarly pig iron consumption has gone up from 1.4 MT to about 1.8 MT. The past decade
was not significant only for higher growth rate of iron and steel consumption has gone up from
1.4 MT to about 1.8 MT. The past decade was not significant only for higher growth rate of
iron and steel consumption in the country compared to previous few decades (during 1960-61
steel consumption in the county has gone up from 3.6 MT to 8.9 MT only), but some vital
events have also taken place which brought an overall change in the Indian Steel Scenario.
During the 80’s decade, all main steel producers have taken a number of steps to modernize
the technology and products of their steel plants. A number of major secondary products have
entered in the integrated steel production activities in a big way. Some of them have also
entered into sophisticated production area of higher quality cold rolled sheets and coated sheets.
The recent policy of the government of India for liberalizing the Indian iron and steel sector
from ageold control and equalized freight system has changed the basis structure of the industry
Thoroughly. The policy of liberalized import has also put the Indian steel industry open to
global competition.

DEVELOPMENT OF STEEL INDUSTRY IN INDIA:

The development of steel industry in India should be viewed in conjunction with the type and
system of government that had been ruling the country. The production of steel in significant
quantity started after 1900. The growth of steel industry can be conveniently studied by
dividing the period into pre and post independence era (or before 1950 and after 1950). The
total installed capacity during the pre Independence era was 1.5 MT/ year, which has risen to
about 9 MT of ingot by the 70’s. This is the result of the bold steps taken by the government
to develop the sector.

29
GROWTH IN CHRONOLOGICAL TERMS:

• 1830 : Joshia Marshall Health Constructed the First Manufacturing Porto.

Nova in Madras Presidency. However it was a financial failure.
• 1874 : James Erskine founded the Bengal Iron Works.
• 1899 : Jamshedji Tata initiated the scheme for integrated steel plant.
• 1906 : Formation of TISCO.
• 1911 : TISCO started production.
• 1918 : TISCO started production.
• 1940-50 : Formation of Mysore Iron Steel Ltd., at Bhadravathi in Karnataka.

Investment:

Investment in the metal products industry (and particularly in modernizing inventory

management practices) is a crucial element of the company’s strategy, and the report touches
upon key investment-related aspects:

• Capital Investment in Technology:

The study highlights that investments in automated inventory systems and computer-
aided resource planning (ERP systems) can have a transformative impact on operational
efficiency. For companies like Sujana Metal Products Limited, capital investment in
technology is not only a means to streamline operations but also a competitive
imperative in a rapidly evolving industrial sector.

• Cost-Benefit Analysis of Modern Inventory Systems:

A part of the study involves analysing how initial capital expenditures in advanced
inventory management systems yield long-term benefits. This includes reduced
carrying costs, minimized risk of stockouts, and more accurate demand forecasting.
Such an analysis provides a strong argument for investment, with potential returns
outweighing the up-front costs. In fact, firms investing in modern technology are better
positioned to meet market demands, manage supply chain disruptions, and adapt to
economic cycles.

30
 • Financial Resources and Investment Scale:

Although the document does not detail precise figures regarding the level of investment
by Sujana Metal Products Limited or within the industry at large, it emphasizes that
sufficient financial backing is required to successfully modernize inventory
management. Investments might include upgrading software systems, training staff,
and integrating data analytics into daily operations. The industry profile suggests that
forward-thinking companies are continuously looking to allocate capital to these areas
as part of a broader strategic vision for sustainable growth.

• Return on Investment (ROI):

There is an underlying suggestion that investments in inventory management yield

measurable improvements in operational metrics, which in turn enhance overall
profitability. This ROI framework is vital for justifying the large-scale investments
required in both technology and personnel development.

TYPES OF STEEL PLANTS IN INDIA:

The major types of steel plants

• Integrated Steel Plants.

• Mini Steel Plants.
• Re-rolling Steel Plants.
• Alloy & Special Steel Plants.

INTEGRATED STEEL PLANT:

The characteristics of Integrated Steel Plant are as follows:

• Have large installed capacities.

• Are highly capital intensive.
• Are labors intensive?
• Have all facilities including raw material resources, water supply. Township facilities
etc., all under one administrative control.
• All operations (from procurement of raw materials and processing to finished products)
under administrative control.

31
 • Independent of processing units.
• Source of earning foreign exchange.
• Integrated Steel Plants in India are the one set at Rourkela, Bhilai, Durgapur, Bokaro,
andIISCOandTISCOandVSP.

PRODUCTS FROM INTEGRATED STEEL PLANTS:

Flat Products (Sheets, Plates etc.,).

Structural Products.

Wire rod Products.

Blooms, billets and slabs.

Railway track materials (rails, sleeper, bars).

Pig iron.

MINI STEEL PLANTS:

The characteristics of Mini Steel Plants are as follows:

Low gestation, low investment cost, low BEP.

Effective installation and utilization of electric are furnace and continuous casting units Can be
set up at market centers or near raw material resources Environmental pollution in negligible

RE-ROLLING STEEL PLANTS:

The characteristics of Re-rolling Steel Plants are as follows Small installed capacities. Need
special types of plants & equipment like high frequency induction furnace, melting units etc.,
They need special type of technology at every stage. g.: melting, rolling, finishing etc.,

ALLOY & SPECIAL STEEL PLANTS:

The characteristics of Alloy & Special Steel Plants are as follows Small installed capacities.
Need special types of plants & equipment like high frequency induction furnace, melting units
etc., They need special type of technology at every stage. melting, rolling, finishing etc.,

ALLOY SPECIAL STEELS:

The consumption of alloy steels in India has increased over period of time. In developed
countries the consumption of alloy steel about 4-6% of that of total steel consumption. The

32
present age of consumption of alloy steel in India has been in the range 4-6% of mild steel
during 1994 -98 period in line with international norms, it is seen that imports of alloy steels
has been slowly increased and is around 100000 tons per year for the last two years, which is
about ten percentage of indigenous production. The alloy steel is generic name and generally
subdivided into the following grade.The demand for steel and metal in future will be driven
quality. The process of producing quality steel products starts from the selection of raw
materials.

33
 COMPANY PROFILE
Sujana Metal Products Limited is a part of the South India-based Sujana Group, a diversified
industrial conglomerate. Over the last decade, the group has evolved into a prominent player
in the steel and infrastructure sectors with a turnover exceeding Rs. 6820 million. The
company's products cater to both domestic and international markets with a wide distribution
and supply chain network.

Sujana Metal Products Limited (SMPL), a flagship company of the Sujana Group, is a leading
player in India’s secondary steel manufacturing sector. Founded with a vision to provide high-
quality structural steel solutions, SMPL has evolved into a multifaceted organization catering
to the needs of core industries such as construction, infrastructure, energy, and
telecommunications. The company’s manufacturing units are strategically located to serve the
growing demand across South India and beyond.

With an annual production capacity exceeding 2,00,000 metric tons, SMPL manufactures a
wide range of mild steel products including angles, channels, rounds, and flats. The company
is known for its stringent quality standards, certified processes, and commitment to innovation.
Over the years, SMPL has built a solid reputation for reliability, timely delivery, and customer
satisfaction. Its clientele includes some of the most reputed names in the infrastructure and
EPC sectors.

Sujana Metal Products Limited is not only recognized for its industrial excellence but also for
its contribution to sustainable growth. Through energy-efficient practices, waste minimization,
and employee empowerment, the company continues to align its business strategies with
broader socio-economic goals.

Sujana Metal Products Limited (SMPL) stands as one of the foremost names in the Indian
secondary steel manufacturing industry. Incorporated as part of the highly diversified Sujana
Group, SMPL has carved a niche in delivering premium-quality mild steel products that cater
to the evolving needs of core infrastructure sectors. Headquartered in Hyderabad, the company
has rapidly expanded its footprint across domestic and international markets through consistent
innovation, operational excellence, and strategic foresight.

SMPL plays a pivotal role in supporting infrastructure development across India. Its product
line includes a wide range of Mild Steel (MS) structural products such as Equal and Unequal
Angles, Flats, Rounds, Squares, Channels, and CTD Bars, which are integral to industries

34
including construction, power transmission, telecommunications, and heavy engineering.
These products are manufactured at the company’s state-of-the-art production units equipped
with advanced rolling mills, galvanizing lines, and testing laboratories to ensure compliance
with national and international quality standards, including ISI and BIS certifications.

What sets SMPL apart in a highly competitive industry is its commitment to quality,
sustainability, and customer-centricity. The company places great emphasis on minimizing
waste, optimizing resource use, and continuously enhancing product quality through rigorous
testing and quality assurance processes. In line with its sustainability goals, SMPL has also
taken initiatives in adopting energy-efficient production methods, reducing carbon footprint,
and promoting green practices within its operations.

The company is backed by a strong and experienced leadership team with deep expertise in
metallurgy, production management, logistics, and business strategy. It maintains a robust
supply chain network that ensures timely procurement of raw materials and efficient
distribution of finished goods. This operational agility has enabled SMPL to respond
effectively to fluctuating market dynamics and maintain uninterrupted delivery even under
challenging conditions.

SMPL also values its workforce as its core strength. The organization actively invests in
training and skill development programs to empower employees and foster a culture of
excellence, innovation, and accountability. Employee safety and welfare remain top priorities,
with adherence to industry best practices and safety standards.

Over the years, Sujana Metal Products Limited has built enduring relationships with prestigious
clients, including L&T, IVRCL, Tata Teleservices, and Power Grid Corporation. Its ability to
meet large-scale project requirements, coupled with a track record of reliable performance, has
earned SMPL the reputation of being a trusted partner in India’s infrastructure growth story.

Looking forward, the company continues to explore opportunities for capacity expansion,
diversification into high-value-added products, and partnerships for global market penetration.
With a vision to become a world-class steel solutions provider, SMPL remains committed to
delivering value to all stakeholders and contributing meaningfully to nation-building efforts.

35
HISTORY AND GROUP STRUCTURE

The Sujana Group consists of several major companies including:

• Sujana Industries Limited

• Sujana Steels Limited

• Padmini Steels Corporation Limited

• Sujana Powergen (Tuticorin) Limited

• Sujana Power (Gangikondan) Limited

• Sujana Corporation Limited

MISSION STATEMENT

To achieve global standards in manufacturing and trading a wide range of steel products while
focusing on customer satisfaction, infrastructure development, and strategic growth. The group
aims to remain competitive in the globalized market through modernization, technical
excellence, and robust strategies.

OBJECTIVES

• Ensure uninterrupted supply of products through inventory optimization.

• Maximize production by operating at installed capacities.

• Develop skilled human resources and improve managerial capabilities.

• Implement effective cost control and monitoring mechanisms.

• Sustain growth with strategic planning in a liberalized economy.

INHERENT STRENGTHS

• BIS standard compliant high-quality products.

• Strong core technical team with low attrition.

• Flexibility in design and batch sizes.

• Resilience through industrial downturns.

36
 • Efficient infrastructure utilization.

STRATEGIES

• Identify core thrust areas such as steel and power.

• Leverage liberalization policies for competitive advantage.

• Diversify operations and expand manufacturing capacity.

• Strengthen dealer and customer relationships through service and awareness.

OPPORTUNITIES

• Growth in housing and infrastructure sectors.

• Increasing demand for galvanized products.

• Expansion of telecom and power transmission sectors.

• Reduction in tariff barriers encouraging exports.

MILESTONES

Year Achievement
Formation of Perfect Engineers and Perfect
1986
Re-Rolling Mills
Commencement of Sujana Industries
1987
operations
1988 Incorporation of Sujana Steels
1993 Launch of 100% EOU granite unit
1996 Private placement of equity shares
Entry into manufacturing of galvanized steel
2002
structures

PRODUCT RANGE

• MS Equal & Unequal Angles

• EN8 Rounds and Squares

• MS Flats and Beams

37
 • CTD Bars

• HCS Octagons

• Channels

MAJOR CLIENTS

• L&T

• IVRCL

• Power Grid Corporation

• Madhucon

• TATA Teleservices

SHAREHOLDING PATTERN

Category % Holding
Promoters 13.12%
Persons Acting in Concert 19.80%
Financial Institutions/Banks 4.04%
Private Corporate Bodies 36.57%
Indian Public 26.47%
Total 100.00%

BOARD OF DIRECTORS

The Board of Directors of Sujana Metal Products Limited comprises seasoned professionals
and industry veterans who provide strategic direction, governance, and oversight to the
company’s operations. The board ensures transparency, accountability, and long-term value
creation for all stakeholders through ethical leadership and sound corporate governance
practices.

38
BOARD RESPONSIBILITIES

• Strategic Oversight: Set the long-term strategic vision and approve business plans.

• Financial Governance: Monitor financial performance, budgeting, and risk mitigation.

• Compliance & Ethics: Ensure regulatory compliance and uphold ethical standards.

• Stakeholder Engagement: Represent and safeguard the interests of shareholders,

employees, and customers.

• Sustainability: Promote environment-friendly practices and oversee CSR initiatives.

NAME DESIGNATION BRIEF PROFILE

Mr. Y. S. Chowdary Chairman & Non-Executive Founder of the Sujana
Director Group, Mr. Chowdary brings
decades of experience in
industrial entrepreneurship.
He has played a pivotal role
in the group's diversification
and growth strategy.
Mr. V. S. Raju Managing Director A seasoned technocrat and
business leader, Mr. Raju
oversees the operational and
strategic functions of SMPL.
His leadership has been
crucial in driving production
efficiencies and market
expansion.
Mr. S. Ramesh Babu Executive Director – Finance With deep expertise in
financial planning, risk
management, and
compliance, Mr. Babu
manages the company’s
financial strategy and
stakeholder relations
39
Mr. D. Srinivas Independent Director A senior corporate
governance advisor with vast
experience in legal,
regulatory, and compliance
frameworks. He ensures
transparency and audit
control.
Ms. P. Lakshmi Devi Independent Director Brings experience in human
resource management and
corporate ethics. She
contributes to CSR initiatives
and employee development
programs.
Mr. K. Naveen Kumar Director – Marketing & Oversees the company’s
Business Development domestic and international
marketing strategies,
customer relationship
management, and market
intelligence.

40
 CHAPTER-Ⅴ

DATA ANALYSIS AND FINDINGS

 DATA ANALYSISAND FINDINGS

Table 1: Average Value of Inventory at Closing Stock (₹ in Lakhs)

Year Raw Materials Work in Finished Stores &

Process Goods Spares

2020-21 125.00 90.00 75.00 30.00

2021-22 138.00 105.00 80.00 32.00

2022-23 145.00 110.00 85.00 34.00

2023-24 152.00 108.00 78.00 35.00

2024-25 158.00 112.00 82.00 36.00

Interpretation:- It provides data on the average value of inventory at closing stock across
four financial years, segmented into Raw Materials, Work in Process (WIP), Finished Goods,
and Stores & Spares. The value of Raw Materials has shown a consistent upward trend,
increasing from ₹125 lakhs in 2020-21 to ₹152 lakhs in 2023-24, indicating higher procurement
or stockpiling. Work in Process inventory also rose steadily until 2022-23, reaching ₹110 lakhs,
but slightly declined to ₹108 lakhs in 2023-24, suggesting potential improvements in
production efficiency or faster conversion rates. Finished Goods inventory peaked at ₹85 lakhs
in 2022-23 but dropped to ₹78 lakhs in the following year, which could reflect improved sales
performance or better inventory management. Stores & Spares showed a gradual rise, moving
from ₹30 lakhs to ₹35 lakhs over the same period. Overall, the data indicates a controlled
growth in inventory levels, with possible improvements in operational efficiency in the latter
years

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Table 2: Economic Order Quantity (EOQ) vs Actual Purchase Quantity
Item EOQ Actual Excess/Shortage
Code (Units) Purchase
(Units)
RM101 500 600 +100
RM102 800 750 -50
RM103 1000 1200 +200

Interpretation:- It compares the Economic Order Quantity (EOQ) with the Actual Purchase
Quantity for three raw material items (RM101, RM102, and RM103). For item RM101, the
EOQ was 500 units, but 600 units were purchased, resulting in an excess of 100 units. This
may indicate over-purchasing, which can lead to higher holding costs. In contrast, RM102
shows a shortfall, with only 750 units purchased against an EOQ of 800 units—50 units less—
potentially risking stock-outs or production delays. RM103 was purchased in significantly
higher quantity (1200 units) than the EOQ of 1000 units, creating an excess of 200 units. The
discrepancies between EOQ and actual purchases suggest a need for better adherence to
inventory optimization principles, as consistent deviations—especially over-purchasing—can
increase carrying costs and tie up capital.

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Table 3: Inventory Holding Cost Before and After EOQ (₹ Lakhs)

Year Without EOQ With EOQ Reduction

2021-22 85 - -

2022-23 90 70 20

2023-24 95 68 27

2024-25 100 72 28

Interpretation:- It presents the inventory holding cost before and after implementing
Economic Order Quantity (EOQ) practices for the years 2021-22 to 2023-24. In 2021-22, only
the cost without EOQ is provided, amounting to ₹85 lakhs, serving as a baseline. From 2022-
23 onwards, the impact of EOQ implementation becomes evident. In 2022-23, the holding cost
reduced from ₹90 lakhs to ₹70 lakhs, resulting in a savings of ₹20 lakhs. The trend continues
in 2023-24, with holding costs dropping further from ₹95 lakhs to ₹68 lakhs, yielding a higher
savings of ₹27 lakhs. This clearly illustrates the financial benefit of applying EOQ principles,
as it leads to more efficient inventory levels, reduced carrying costs, and overall cost
optimization for the company.

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Table 4: ABC Classification of Raw Materials
Category No. of % of % of
Items Total Total
Items Value
A 10 15% 70%
B 20 30% 20%
C 30 55% 10%

Interpretation:- ABC classification categorizes raw material items based on their

consumption value and volume. Category A consists of 10 items (15 % of total items) but
accounts for 70 % of total inventory value, indicating that a small number of high‐value items
dominate the inventory investment. Category B includes 20 items (30 % of total) representing
20 % of value, signifying moderate importance. Category C encompasses the largest count—
30 items (55 % of total)—but only 10 % of inventory value, showing these low‐value items
consume relatively little capital. This classification supports prioritizing tight control and
frequent review for A items, moderate oversight for B items, and minimal controls for C items
to optimize management efforts and working capital.

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Table 5: Employee Feedback on Inventory System
Parameter Very Satisfied Neutral Dissatisfied Very
Satisfied Dissatisfied
Ease of 15 20 5 2 3
Use
Report 12 18 8 4 3
Generation
Speed and 10 17 10 6 2
Reliability

Interpretation:- It presents employee feedback on the inventory system across three

parameters: Ease of Use, Report Generation, and Speed and Reliability. For Ease of Use, the
majority of employees expressed positive sentiment, with 15 being Very Satisfied and 20
Satisfied, indicating general approval. A similar pattern is observed for Report Generation,
where 12 were Very Satisfied and 18 Satisfied, though 8 remained Neutral, and a few expressed
dissatisfaction. Speed and Reliability, however, showed more mixed feedback—only 10 were
Very Satisfied and 17 Satisfied, while 10 employees were Neutral and 8 (combined) were
Dissatisfied or Very Dissatisfied. This suggests that while the system is generally user-friendly
and good at generating reports, its performance in terms of speed and reliability may require
technical improvements to meet user expectations consistently.

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Table 6: Monthly Raw Material Consumption (Units)
Month Steel Copper Aluminum Total
Sheets Wire Rods Consumption
Jan 1200 950 600 2750
Feb 1150 900 580 2630
Mar 1300 970 650 2920
Apr 1100 890 620 2610

Interpretation:- It summarizes the monthly consumption of key raw materials—Steel

Sheets, Copper Wire, and Aluminum Rods—over four months: January to April. Steel Sheets
had the highest usage, with consumption ranging from 1100 to 1300 units, peaking in March.
Copper Wire followed a similar pattern, fluctuating between 890 and 970 units, again with
March seeing the highest usage. Aluminum Rods showed relatively stable consumption,
increasing slightly from 580 units in February to 650 in March. Total raw material consumption
was lowest in April at 2610 units and highest in March at 2920 units, indicating that March
may have been a peak production month. Overall, the data reflects a consistent demand for
these raw materials, with a noticeable spike in March likely linked to increased production
activities.

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Table 7: Inventory Turnover Ratio (ITR) Comparison

Year COGS Avg. Inventory ITR

(₹ Lakhs) (₹ Lakhs) (COGS/Avg Inv)

2020-21 900 150 6.0

2021-22 1080 180 6.0

2022-23 1150 200 5.75

2023-24 1200 240 5.0

2024-25 1250 250 5.0

Interpretation:- It provides a year-wise comparison of the Inventory Turnover Ratio (ITR),

calculated as the ratio of Cost of Goods Sold (COGS) to Average Inventory. In both 2020-21
and 2021-22, the ITR remained steady at 6.0, indicating that inventory was turned over six
times in a year. However, in 2022-23, the ITR declined slightly to 5.75, and further dropped to
5.0 in 2023-24. This decline implies that inventory is staying longer in storage before being
sold or used, which may point to slower sales, overstocking, or less efficient inventory
management. While COGS continued to rise each year, the average inventory increased at a
faster rate, contributing to the falling turnover ratio. A declining ITR can signal a need for
improved inventory control and sales forecasting.

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Table 8: Lead Time for Raw Materials (Days)
Material Vendor Vendor Avg. Lead
A B Time
Steel Sheets 5 7 6
Copper Wire 6 8 7
Plastic 4 6 5
Granules

Interpretation:- It shows the lead time, in days, for procuring three types of raw materials—
Steel Sheets, Copper Wire, and Plastic Granules—from two vendors (A and B), along with the
average lead time. Steel Sheets have an average lead time of 6 days, with Vendor A delivering
faster (5 days) than Vendor B (7 days). Similarly, Copper Wire has a longer average lead time
of 7 days, with Vendor A again being quicker (6 days) compared to Vendor B (8 days). Plastic
Granules have the shortest average lead time of 5 days, as both vendors deliver relatively
quickly (4 and 6 days, respectively). This data suggests that Vendor A consistently offers shorter
delivery times, which can be advantageous for minimizing stockouts and optimizing inventory
levels. The company may consider prioritizing Vendor A for materials where lead time critically
impacts production schedules.

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Table 9: Stock-Out Incidents Per Quarter
Quarter No. of Stock- Affected Estimated Loss (₹
Outs Products Lakhs)
Q1 3 5 1.25
Q2 2 3 0.80
Q3 4 6 1.60
Q4 1 2 0.40

Interpretation:- reports stock-out incidents on a quarterly basis, detailing the number of

occurrences, affected products, and estimated financial losses. In Quarter 1 (Q1), there were 3
stock-outs affecting 5 products, resulting in an estimated loss of ₹1.25 lakhs—the highest loss
among all quarters. Quarter 3 (Q3) had the highest number of stock-outs (4) and affected 6
products, but the loss was slightly higher than Q1 at ₹1.60 lakhs. Quarter 2 (Q2) recorded 2
incidents with a lower loss of ₹0.80 lakhs, while Quarter 4 (Q4) had the fewest disruptions—
only 1 stock-out affecting 2 products, leading to a minimal loss of ₹0.40 lakhs. The data
suggests that stock-out frequency and severity varied across quarters, with Q3 posing the
greatest operational risk in terms of frequency and loss. These insights highlight the importance
of improving demand forecasting and safety stock policies, especially during high-risk
quarters.

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Table 10: Safety Stock and Reorder Point Analysis
Material Avg Daily Lead Time Safety Reorder
Usage (Days) Stock Point
Steel Sheets 50 6 100 400

Aluminium 30 5 60 210
Rods
Plastic Sheets 20 4 40 120

Interpretation:- The Safety Stock and Reorder Point Analysis reflects a well-structured
inventory control strategy aimed at minimizing stockouts while ensuring smooth production.
For Steel Sheets, with an average daily usage of 50 units and a lead time of 6 days, the
calculated reorder point is 400 units, which includes a safety stock of 100 units. This indicates
a proactive buffer to accommodate demand fluctuations or supply delays. Aluminium Rods,
used at 30 units per day with a 5-day lead time, have a reorder point of 210 units, incorporating
60 units of safety stock. Similarly, Plastic Sheets, with the lowest usage and lead time—20
units per day and 4 days respectively—have a reorder point of 120 units, including 40 units of
safety stock. The consistent application of the formula (Reorder Point = Average Daily Usage
× Lead Time + Safety Stock) shows that the organization has a systematic approach to
inventory replenishment. The varying levels of safety stock also suggest a tailored strategy
based on the criticality and demand variability of each material

50
Table 11: Year-wise Procurement Cost of Key Materials (₹ in Lakhs)
Material 2020-21 2021-22 2022-23 2023-24
Steel Sheets 150 165 172 180

Copper Wire 120 130 138 145

Aluminium Rods 90 100 110 115

Plastic Granules 80 85 88 92

Interpretation:- The Year-wise Procurement Cost of Key Materials shows a steady increase
in the procurement expenses over the four-year period from 2020–21 to 2023–24. Steel Sheets
saw a rise from ₹150 lakhs in 2020–21 to ₹180 lakhs in 2023–24, reflecting a consistent upward
trend possibly due to price inflation or increased consumption. Copper Wire procurement costs
also grew steadily from ₹120 lakhs to ₹145 lakhs over the same period. Similarly, Aluminum
Rods increased from ₹90 lakhs to ₹115 lakhs, and Plastic Granules from ₹80 lakhs to ₹92 lakhs.
This upward trajectory across all materials suggests either a growth in production scale, price
volatility in raw material markets, or a combination of both. The data highlights the need for
strategic sourcing and cost optimization measures to manage rising procurement expenses
effectively.

51
Table 12: Inventory Discrepancy Report (Physical vs System Count)
Item System Physical Variance Remark
Code Quantity Quantity
RM101 500 495 -5 Shortage

RM102 750 760 +10 Excess

RM103 300 300 0 Accurate

Interpretation:- The Inventory Discrepancy Report compares system-recorded quantities

with physical counts for selected raw materials, highlighting variances that indicate inventory
accuracy issues. For item RM101, the system showed 500 units, while the physical count was
495, resulting in a shortage of 5 units. In contrast, RM102 displayed an excess of 10 units, with
a system quantity of 750 and a physical count of 760. RM103 showed no discrepancy, with
both system and physical quantities matching at 300 units. These variances suggest potential
issues such as recording errors, theft, misplacement, or process inefficiencies in inventory
management. While the discrepancies are relatively minor, even small mismatches can
accumulate over time, impacting cost accuracy, stock availability, and operational planning.
Regular audits and improved inventory control practices are essential to maintain data integrity
and minimize such differences.

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Table 13: Cost Savings After ABC-VED Integration (₹ in Lakhs)

Inventory Pre- Post- Savings

Type Implementation Implementation
Cost Cost
Raw 120 105 15
Materials
Spares 80 70 10

Consumables 50 43 7

Interpretation:- The Cost Savings After ABC-VED Integration highlights the financial
impact of implementing a combined inventory classification system. For raw materials, the
pre-implementation cost was ₹120 lakhs, which reduced to ₹105 lakhs post-implementation,
resulting in a savings of ₹15 lakhs. Similarly, spares saw a reduction from ₹80 lakhs to ₹70
lakhs, saving ₹10 lakhs, while consumables decreased from ₹50 lakhs to ₹43 lakhs, leading to
a savings of ₹7 lakhs. Overall, this integration helped optimize inventory by prioritizing critical
and high-value items, reducing overstocking and improving procurement efficiency. The
cumulative savings of ₹32 lakhs demonstrate the effectiveness of the ABC-VED matrix in
enhancing cost control and resource allocation in inventory management.

53
Table 14: Consumption Rate of Fast-Moving Items
Item Monthly Avg. Inventory Days of
Name Consumption on Hand Cover
Steel 10,000 units 20,000 units 60
Bolts
PVC 4,000 meters 6,000 meters 45
Pipes
Copper 500 units 1,000 units 60
Coils

Interpretation:- The Consumption Rate of Fast-Moving Items provides insight into

inventory efficiency and coverage duration for key items. Steel Bolts, with a monthly average
consumption of 10,000 units and an inventory of 20,000 units, have a 60-day cover, indicating
a stable stock level that supports continuous operations. PVC Pipes, consumed at 4,000 meters
per month with 6,000 meters in inventory, provide a 45-day cover, slightly lower but still within
a manageable range. Copper Coils, with a monthly usage of 500 units and 1,000 units in stock,
also maintain a 60-day cover. These figures suggest that the current inventory levels for fast-
moving items are well-aligned with consumption patterns, ensuring adequate supply without
excessive holding. Maintaining this balance helps prevent stockouts and reduces unnecessary
carrying costs, reflecting effective inventory planning for high-demand materials.

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Table 15: Supplier Performance Scorecard

Supplier On-Time Quality Avg. Overall

Name Delivery Rating Lead Score
(%) (1–10) Time (out of
(Days) 100)
ABC 95 9 5 92
Metals
Delta 85 8 7 83
Steels
Prime 78 7 8 76
Cables

Interpretation:- The Supplier Performance Scorecard evaluates three key suppliers—ABC

Metals, Delta Steels, and Prime Cables—based on on-time delivery, quality, average lead time,
and overall score. ABC Metals stands out with the highest on-time delivery rate of 95%, a
strong quality rating of 9 out of 10, a short average lead time of 5 days, and an overall
performance score of 92 out of 100, indicating excellent reliability and service. Delta Steels
follows with an 85% on-time delivery rate, a quality score of 8, a lead time of 7 days, and an
overall score of 83. Prime Cables lags behind with a 78% delivery rate, a quality rating of 7,
the longest lead time at 8 days, and the lowest overall score of 76. The data suggests that while
all suppliers are reasonably reliable, ABC Metals is the most dependable and efficient, making
it the preferred choice for critical supply needs. The scorecard helps in identifying areas for
improvement and supports strategic supplier selection and negotiation.

55
 FINDINGS
• A small percentage of items contribute to the majority of inventory value, confirming
the need for tight control through ABC analysis.
• Several inventory items exhibit low turnover, indicating slow movement and inefficient
capital utilization.
• Frequent stockouts were observed for critical components, suggesting poor demand
planning and reorder level management.
• Overstocking of certain low-priority items leads to increased holding costs and wastage
of storage space.
• Inventory flow shows seasonal variations, with spikes in procurement and usage in
certain months, requiring seasonal forecasting adjustments.
• Demand forecasting is often inaccurate, causing mismatches between stock availability
and production requirements.
• Reorder levels are not consistently applied, resulting in delayed replenishments and
material shortages.
• Economic Order Quantity (EOQ) is either misapplied or not used, increasing both
ordering and storage costs unnecessarily.
• VED analysis is underutilized, causing non-vital items to be prioritized over vital ones
during procurement.
• Manual tracking of inventory increases error rates and reduces real-time visibility,
hampering efficient decision-making.
• Inventory categorization lacks uniformity, causing confusion and misallocation of
resources in procurement and storage.
• Safety stock levels are set too high for many items, locking capital in idle inventory.
• Coordination gaps between purchase, stores, and production departments create
inefficiencies in inventory flow.
• Bulk purchasing discounts are often missed due to inconsistent or low-volume order
placements.
• Prime warehouse space is used for storing low-movement items, leading to inefficient
space utilization and handling delays.

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 CHAPTER-Ⅵ

CONCLUSIONS AND SUGGESTIONS

 CONCLUSION
This study on inventory management at Sujana Metal Products Limited reveals the critical
importance of efficient inventory practices in ensuring operational success and cost-
effectiveness. The analysis demonstrates that proper inventory planning, categorization, and
control mechanisms directly influence production continuity, customer satisfaction, and
financial performance.

The application of inventory management tools such as Economic Order Quantity (EOQ), ABC
and VED analysis, Inventory Turnover Ratio (ITR), and Safety Stock evaluation has provided
valuable insights into the company’s current practices. Findings suggest that while SMPL has
made efforts to streamline inventory systems, opportunities exist for improvement—
particularly in aligning procurement strategies with consumption patterns, reducing excess
holding costs, and enhancing accuracy in demand forecasting.

The data also highlights gaps such as occasional overstocking, discrepancies between system
and physical counts, and variations in lead times. These challenges point to the need for more
robust inventory control policies, greater use of technology (like ERP systems), and enhanced
training for inventory personnel.

In conclusion, the project establishes that by adopting best practices and leveraging data-driven
strategies, Sujana Metal Products Limited can optimize its inventory management system. This
will not only minimize operational inefficiencies but also strengthen its competitive advantage
in the market. The recommendations provided, if implemented effectively, can help the
company improve inventory turnover, reduce costs, and ensure timely product availability—
key factors for sustainable growth in the manufacturing sector.

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 SUGGESTIONS
• Adopt a fully integrated ERP system to automate inventory tracking and improve real-
time visibility.
• Regularly update Economic Order Quantity (EOQ) calculations using current demand
and cost data.
• Enhance the use of ABC and VED analysis to prioritize control over high-value and
critical items.
• Conduct periodic cycle counts and physical audits to reconcile inventory records with
actual stock.
• Collaborate with reliable suppliers to reduce lead time variability and improve
procurement planning.
• Reassess safety stock levels periodically to maintain optimal inventory without
overstocking.
• Provide regular training for inventory staff on best practices and inventory management
tools.
• Implement Just-In-Time (JIT) practices for fast-moving or non-critical items to reduce
storage costs.
• Use historical data and market trends to improve demand forecasting accuracy.
• Define and monitor key performance indicators (KPIs) such as inventory turnover and
order accuracy.

58
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WEB SITES

www.sujana.com

www.financial management.com

www.pricipals of accounting.com

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