Need of Effective Utilization of Material Management on Construction Site: A Comparative Study of Inventory Control Systems for Effective Material Management on Construction Sites

Abstract

The management and control of inventory is a problem common to all organizations in anysector of the economy. The wealth of shareholders also lies in the warehouse. More than 60 of workingcapital is normally being invested in the inventory. There can be disadvantages in holding either too muchor too little inventory. Therefore inventory management is primarily concerned with obtaining correctbalance between two extremes.Inventory management involves the development and administration of policies, system and procedureswhich will minimizes total cost relative to inventory decisions and related functions such as customerservice requirement, production scheduling, purchasing etc.., Viewed in that perspective, inventorymanagement has a broad scope and affects a great or number of activities in an Organization. For thepast few years the concept of inventory system has gained more importance in our country. It is due tointense competition in the market, which has forced organizations to search for proper inventory controltechnique to reduce investment in inventories and thereby reducing overall cost.In this study the study of current inventory system is carried out and by combining the differentinventory system the one new inventory system developed .By comparing the cost benefit analysisbetween current inventory control system and new inventory system by taking suitable actual casestudy will be carried out