A STUDY ON INVENTORY MANAGEMENT WITH REFERENCE TO HMT

Abstract

The present study focuses on evaluating the inventory management practices of Hindustan Machine Tools (HMT), a leading public sector enterprise in India. Effective inventory management plays a critical role in maintaining the operational efficiency and financial stability of manufacturing firms. This research explores how HMT manages its raw materials, work-in-progress (WIP), finished goods, and spare parts inventory. It analyzes the techniques used for inventory control, such as Economic Order Quantity (EOQ), Just-In-Time (JIT), and ABC analysis, and examines their impact on production schedules, cost reduction, and overall profitability. Data has been collected through primary surveys and secondary sources, including annual reports and internal documents. The findings highlight key challenges such as overstocking, stockouts, and outdated inventory handling methods. The study concludes with suggestions to improve HMT's inventory turnover ratio, reduce carrying costs, and adopt modern ERP-based inventory systems. This research aims to provide strategic insights to help HMT enhance its inventory efficiency and competitiveness in the evolving industrial landscape