A Study on Inventory Management System: A Case Study of Hindustan Aeronautics Limited (HAL), Nashik

Abstract

Inventory management is a challenging problem area in supply chain management. The companies want to have inventories in warehouses to ful ll customer demand, meanwhile, these inventories have holding costs and this is the frozen fund that can be lost. Therefore, the task of inventory management is to  nd the number of inventories that will fulfill the demand, avoiding overstocks. This paper presents a case study for Hindustan Aeronautics Limited (HAL), on inventory management. The relationship between the inventory management and company performance was determined based on inventory days and return on asset (ROA) analysis and Inventory for the year and Creditor for the year. The study also demonstrated that there was a signi cant relationship between return on asset (ROA) and inventory days.