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Study on Effectiveness of Inventory Control System

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The problem of competition is increasing in world market place. it’s forced the companies to contemplate ways in which of up the internal control system. Severe competition makes it necessary to ceaselessly introduce new product and new styles of product.
Now every day each company can face the competition, attributable to that each company maintains a versatile inventory system. It can rely on however the corporate will reply to the quick dynamical market wants, client expectation and technological advancement. the corporate can specialize in enhancements on the subsequent measures: –

  • The Inventory Level and work-in-progress
  • Quality of the merchandise and technological advancement
  • Flexibility and responsiveness of the assembly method

To meet the increased  demand of the merchandise, it’s necessary to extend the capability of existing construction facility. The necessity of effective inventory management is being progressively complete in industrial and non-industrial organization each in Asian nation and abroad. This realization has ensue attributable to increasing quality of the task of managers and directors. In most organization, the matter of effective internal control is currently viewed because the most crucial problem with changes in social climate. whereas these are often nice assets to the organizations, they become issues if the organization isn’t able to manage inventory properly.



Liquidity and profitable area unit the 2 important aspects of company business. Any business cannot run while not these 2. A firm might run while not profits for sometime; however with no liquidity, the firm cannot run their business. that’s why management of inventory is associate degree integral a part of company coming up with in calling.


The proper internal control system ends up in associate degree optimum utilization of resources. Idle materials area unit of a monetary burden to the organization. so correct, inventory management directly assists in economical functioning of the corporate. S.L. Goel says “take care of the forest, the tree can watch out of itself”, it ought to be the most shibboleth of a list controller.


In inventory management, varied ways and techniques are often adopted to regulate the inventory like, prompt maintenance of registrars, correct material arrangement, and fixation of varied management levels and application of internal control techniques and bin card system etc, that area unit relevant for internal control in stores department.


Inventory management can facilitate a company in handling the provision of the raw materials and different activity so as to attain the most co-ordination and optimum expenditure on materials to extend the profits of the firm. CLA’s inventory management|internal control system is chosen for the study; by the investigator is not any expectation see able of growing significance of the economical control of inventories. Hence, the research worker was prompted to require up this subject.


The problem hand-picked to the analysis is “to study the effectiveness of internal control system” at Capital Land Assets Pvt Ltd., The effectiveness of the prevailed inventory system is analyzing at the same time.


The variation of the costs of raw materials are analyzing with their effects on the operating of the unit.


The literary that means of the word “Inventory” is stock of products. each enterprise wants inventory for swish running of its activities. It is a link between production and distribution method. The unforeseen fluctuation in demand and provide of products additionally necessitates the necessity for inventory. It additionally provides a cushion for future worth fluctuations.


The purpose of inventory management is to make sure convenience of materials in comfortable quality and amount as and once needed and additionally to attenuate investment in inventories. so it’s terribly essential to possess correct management and management of inventory.


Inventories play a significant role operating of real estate‟s trade. The inventory ensures operational smoothness. In most the organizations the substantial a part of capital is invested with in inventories. Inventory refers to stock of product a firm that’s purchasable and additionally the parts that conjure the merchandise.


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