Inventory Model for Medium and Small Scale Enterprises

Komati Durga Prasad; Soofi Asra Mubeen; Banda Rajani

doi:doi:10.11648/j.sjbm.20200802.08

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Inventory Model for Medium and Small Scale Enterprises

Komati Durga Prasad, Soofi Asra Mubeen, Banda Rajani

Published in Science Journal of Business and Management (Volume 8, Issue 2)

Received: 27 November 2019 Accepted: 4 January 2020 Published: 23 June 2020

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Abstract

At the enterprise level, inventory holding assumes significance importance, as inventories represent an oversized proportion of the entire assets of the many issues. Proper control over inventories provides the management with flexibility in making purchases systematically rather than buying strictly according to the production schedule and hand to mouth supplies. The major drawback of internal control is to maximize profitableness by reconciliation investment price of materials against what’s needed to sustain level operations. The purpose of this paper is to study the status of inventory holding the Medium and Scale Enterprises. An attempt is also made to test the optimality of inventory holding in these enterprises concerning the cost of sales by applying simple regression models For testing the optimality of inventory holding in relationship cost of sales, correlation coefficient, coefficient of determination (R-square), F-test through ANOVA, regression coefficients and their standard errors, values of t-statistics and their P-values have been computed. The analysis reveals that Medium and Light Engineering Central Public Enterprises could reduce the inventory holding in terms of the number of days of consumption, cost of production and cost of sales.

Published in	Science Journal of Business and Management (Volume 8, Issue 2)
DOI	10.11648/j.sjbm.20200802.08
Page(s)	102-105
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2020. Published by Science Publishing Group

Keywords

Inventories, Medium, and Small Enterprises, Regression, ANOVA

References

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[2]	Abanis, Turyahebwa, Sunday Arthur, Burani, Aluonzi and Eliabu Byamukama (2013), “Financial Management Practices In Small and Medium Enterprises in Selected Districts In Western Uganda”, Research Journal of finance and Accounting, Vol. 4 (2), pp. 29-42.
[3]	Adam, E. E. and Ebert, J. R. (1993): Production and Operations Management: Concepts, Models and Behaviour, 5 th edition. Prentice Hall, New Delhi. p 568
[4]	Barker, T. (1989): The Essential of Material Management. McGraw Hill Book Co. London. p 261.
[5]	Brown, M. J. (2017), “How important are small businesses to local economies?”, Retrieved from: smallbusiness.chron.com/important-small-businesses-local-economies-5251.html
[6]	Edwardson, W. (1989): Improvement of the Small Scale Food Industry Developing Countries. UNIDO Industry Development, No. 27 p13.
[7]	Harishini., L (2010). An Empirical Investigation of Inventory Management Particles of Processed Food Supply Chain in Srilanka, Manufacture perspective: A case study proceeding of the 2010. International Conference on Industrial Engineering and Operation Management Dhaka. Bangladesh.
[8]	Kotut, P. K. (2003). ‘Working capital management practices by Kenyan firms: A case study of firms listed in the NSE’, Unpublished MBA project. Egerton University.
[9]	Montgomery, D. C., Peck, E. A., & Vining, G. G. (2015). Introduction to linear regression analysis. John Wiley & Sons.
[10]	Monisola, Olowolaju (2013), “An assessment of Inventory Management in Small and Medium Scale Industrial Enterprises in Nigeria”, European Journal of Business and Management, Vol. 5 (28), pp. 150-158.
[11]	Nyamao, N. R., Patrick, O., Martin, L., Odondo, A. J., & Simeyo, O. (2011). ‘Effect of working capital management practices on financial performance: A study of small scale enterprises in Kisii South District, Kenya”, African Journal of Business Management Vol. 6 (18), pp. 5807-5817, 9 May, 2012
[12]	Rajeev, N., Do Inventory Management Practices Affect Economic Performance? An Empirical Evaluation of the Machine Tool SMEs in Bangalore, International Journal of Innovation and Technology Management, Vol. 4, no. 7, pp 405-422, 2010.
[13]	S. Angel Raphella, S. Gomathi Nathan and G. Chitra, “Inventory Management- A Case Study”, International Journal of Emerging Research in Management &Technology, ISSN: 2278-9359, Vol. 3 (3) June 2014, pp. 94-102.
[14]	Storey, D. J. (1994). Understanding the Small Business Sector. Routledge, London.
[15]	Wallin, C., M., Rungtusanatham, M. J., and Rabinovich, E. (2006),"What is the “right” inventory management approach for a purchased item?", International Journal of Operations & Production Management, Vol. 26 Iss 1 pp. 50 – 68.
[16]	Wang, L., (2009). Study on the system optimization of inventory management of SME, IJCAI International Joint Conference on Artificial Intelligence, July 13-17, California, USA, pp. 413-416, 2009.
[17]	Zipkin, P. H. (2000). Foundations of inventory management (Vol. 20). McGraw-Hill New York.

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APA Style

Komati Durga Prasad, Soofi Asra Mubeen, Banda Rajani. (2020). Inventory Model for Medium and Small Scale Enterprises. Science Journal of Business and Management, 8(2), 102-105. https://doi.org/10.11648/j.sjbm.20200802.08

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ACS Style

Komati Durga Prasad; Soofi Asra Mubeen; Banda Rajani. Inventory Model for Medium and Small Scale Enterprises. Sci. J. Bus. Manag. 2020, 8(2), 102-105. doi: 10.11648/j.sjbm.20200802.08

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AMA Style

Komati Durga Prasad, Soofi Asra Mubeen, Banda Rajani. Inventory Model for Medium and Small Scale Enterprises. Sci J Bus Manag. 2020;8(2):102-105. doi: 10.11648/j.sjbm.20200802.08

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@article{10.11648/j.sjbm.20200802.08,
  author = {Komati Durga Prasad and Soofi Asra Mubeen and Banda Rajani},
  title = {Inventory Model for Medium and Small Scale Enterprises},
  journal = {Science Journal of Business and Management},
  volume = {8},
  number = {2},
  pages = {102-105},
  doi = {10.11648/j.sjbm.20200802.08},
  url = {https://doi.org/10.11648/j.sjbm.20200802.08},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.sjbm.20200802.08},
  abstract = {At the enterprise level, inventory holding assumes significance importance, as inventories represent an oversized proportion of the entire assets of the many issues. Proper control over inventories provides the management with flexibility in making purchases systematically rather than buying strictly according to the production schedule and hand to mouth supplies. The major drawback of internal control is to maximize profitableness by reconciliation investment price of materials against what’s needed to sustain level operations. The purpose of this paper is to study the status of inventory holding the Medium and Scale Enterprises. An attempt is also made to test the optimality of inventory holding in these enterprises concerning the cost of sales by applying simple regression models For testing the optimality of inventory holding in relationship cost of sales, correlation coefficient, coefficient of determination (R-square), F-test through ANOVA, regression coefficients and their standard errors, values of t-statistics and their P-values have been computed. The analysis reveals that Medium and Light Engineering Central Public Enterprises could reduce the inventory holding in terms of the number of days of consumption, cost of production and cost of sales.},
 year = {2020}
}

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TY  - JOUR
T1  - Inventory Model for Medium and Small Scale Enterprises
AU  - Komati Durga Prasad
AU  - Soofi Asra Mubeen
AU  - Banda Rajani
Y1  - 2020/06/23
PY  - 2020
N1  - https://doi.org/10.11648/j.sjbm.20200802.08
DO  - 10.11648/j.sjbm.20200802.08
T2  - Science Journal of Business and Management
JF  - Science Journal of Business and Management
JO  - Science Journal of Business and Management
SP  - 102
EP  - 105
PB  - Science Publishing Group
SN  - 2331-0634
UR  - https://doi.org/10.11648/j.sjbm.20200802.08
AB  - At the enterprise level, inventory holding assumes significance importance, as inventories represent an oversized proportion of the entire assets of the many issues. Proper control over inventories provides the management with flexibility in making purchases systematically rather than buying strictly according to the production schedule and hand to mouth supplies. The major drawback of internal control is to maximize profitableness by reconciliation investment price of materials against what’s needed to sustain level operations. The purpose of this paper is to study the status of inventory holding the Medium and Scale Enterprises. An attempt is also made to test the optimality of inventory holding in these enterprises concerning the cost of sales by applying simple regression models For testing the optimality of inventory holding in relationship cost of sales, correlation coefficient, coefficient of determination (R-square), F-test through ANOVA, regression coefficients and their standard errors, values of t-statistics and their P-values have been computed. The analysis reveals that Medium and Light Engineering Central Public Enterprises could reduce the inventory holding in terms of the number of days of consumption, cost of production and cost of sales.
VL  - 8
IS  - 2
ER  -

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Author Information

Komati Durga Prasad

ICFAI Law School, ICFAI Foundation for Higher Education, Hyderabad, India
Soofi Asra Mubeen

Department of Management, Higher College of Technology, Muscat, Oman
Banda Rajani

Department of Management, Chaitanya Deemed to Be University, Warangal, India

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Plain Text BibTeX RIS

APA Style

Komati Durga Prasad, Soofi Asra Mubeen, Banda Rajani. (2020). Inventory Model for Medium and Small Scale Enterprises. Science Journal of Business and Management, 8(2), 102-105. https://doi.org/10.11648/j.sjbm.20200802.08

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ACS Style

Komati Durga Prasad; Soofi Asra Mubeen; Banda Rajani. Inventory Model for Medium and Small Scale Enterprises. Sci. J. Bus. Manag. 2020, 8(2), 102-105. doi: 10.11648/j.sjbm.20200802.08

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AMA Style

Komati Durga Prasad, Soofi Asra Mubeen, Banda Rajani. Inventory Model for Medium and Small Scale Enterprises. Sci J Bus Manag. 2020;8(2):102-105. doi: 10.11648/j.sjbm.20200802.08

Copy | Download

@article{10.11648/j.sjbm.20200802.08,
  author = {Komati Durga Prasad and Soofi Asra Mubeen and Banda Rajani},
  title = {Inventory Model for Medium and Small Scale Enterprises},
  journal = {Science Journal of Business and Management},
  volume = {8},
  number = {2},
  pages = {102-105},
  doi = {10.11648/j.sjbm.20200802.08},
  url = {https://doi.org/10.11648/j.sjbm.20200802.08},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.sjbm.20200802.08},
  abstract = {At the enterprise level, inventory holding assumes significance importance, as inventories represent an oversized proportion of the entire assets of the many issues. Proper control over inventories provides the management with flexibility in making purchases systematically rather than buying strictly according to the production schedule and hand to mouth supplies. The major drawback of internal control is to maximize profitableness by reconciliation investment price of materials against what’s needed to sustain level operations. The purpose of this paper is to study the status of inventory holding the Medium and Scale Enterprises. An attempt is also made to test the optimality of inventory holding in these enterprises concerning the cost of sales by applying simple regression models For testing the optimality of inventory holding in relationship cost of sales, correlation coefficient, coefficient of determination (R-square), F-test through ANOVA, regression coefficients and their standard errors, values of t-statistics and their P-values have been computed. The analysis reveals that Medium and Light Engineering Central Public Enterprises could reduce the inventory holding in terms of the number of days of consumption, cost of production and cost of sales.},
 year = {2020}
}

Copy | Download

TY  - JOUR
T1  - Inventory Model for Medium and Small Scale Enterprises
AU  - Komati Durga Prasad
AU  - Soofi Asra Mubeen
AU  - Banda Rajani
Y1  - 2020/06/23
PY  - 2020
N1  - https://doi.org/10.11648/j.sjbm.20200802.08
DO  - 10.11648/j.sjbm.20200802.08
T2  - Science Journal of Business and Management
JF  - Science Journal of Business and Management
JO  - Science Journal of Business and Management
SP  - 102
EP  - 105
PB  - Science Publishing Group
SN  - 2331-0634
UR  - https://doi.org/10.11648/j.sjbm.20200802.08
AB  - At the enterprise level, inventory holding assumes significance importance, as inventories represent an oversized proportion of the entire assets of the many issues. Proper control over inventories provides the management with flexibility in making purchases systematically rather than buying strictly according to the production schedule and hand to mouth supplies. The major drawback of internal control is to maximize profitableness by reconciliation investment price of materials against what’s needed to sustain level operations. The purpose of this paper is to study the status of inventory holding the Medium and Scale Enterprises. An attempt is also made to test the optimality of inventory holding in these enterprises concerning the cost of sales by applying simple regression models For testing the optimality of inventory holding in relationship cost of sales, correlation coefficient, coefficient of determination (R-square), F-test through ANOVA, regression coefficients and their standard errors, values of t-statistics and their P-values have been computed. The analysis reveals that Medium and Light Engineering Central Public Enterprises could reduce the inventory holding in terms of the number of days of consumption, cost of production and cost of sales.
VL  - 8
IS  - 2
ER  -

Copy | Download