A Study on the Effectiveness of Inventory in Working Capital Management of Select Cement Companies in Meghalaya

Abstract

Inventory management which is an integral part of the working capital management is viewed as a fundamental catalyst of ensuring corporate profitability. It occupies the most strategic position in the structure of working capital of most business enterprises. It constitutes the largest component of current asset in most business enterprises. In the sphere of working capital, the efficient control of inventory has passed the most serious problem to the cement mills because about two-third of the current assets of mills are blocked in inventories. The turnover of working capital is largely governed by the turnover of inventory. The study intends to explore conceptually the inventory management options in ensuring corporate profitability.