A Case Study on Connection between Inventory Management and Company Performances

An investigation into the impact of inventory management on company performance in a textile chain store

Abstract

This paper reports the discoveries of a connected research on inventory management at a textile chain store in India. It particularly analyzed the connection between inventory management and company’s performance. Meetings with the organization management were led to distinguish the inventory management issues and framework utilized by the organization. The connection between the inventory management and company performance was resolved in view of inventory days and return on asset (ROA) examination. The examination found that organization X had a couple of inventory issues, for example, disorderly inventory course of action, vast measure of inventory daysno cycle checking and no precise records funds to be paid to untalented laborers. The examination additionally demonstrated that there was a noteworthy connection between return on asset (ROA) and inventory days.