INTRODUCTION

Management must be concerned with all aspects of the firms operations including production of goods and delivery of services, sales and marketing activities, and supporting functions, such as personal training and data processing to handle these responsibilities, most firms make extensive use of financial data and reports. As businesses become larger and more complex, finance assumed the responsibility of dealing with problems and decisions associated with managing the firms assets. Inventories constitute the major element in the working capital of many business enterprises. For instance, inventories on an average constitute 60 percent of current assets in public limited companies in INDIA. It is, therefore, necessary to manage inventories efficiently and effectively to avoid unnecessary investments in them .Inventories have a direct Impact on the profits of the firm. Profit is affected by inventories in several ways. Firstly, too much, or too little inventory affects the firms rate of return on investment. Secondly, the rate at which the inventories move through the production on distribution process also affects the cost of doing business.

It is therefore, necessary to formulate and initiate inventory policies which will serve as guides in determining the correct level of inventory to maintain and the correct amount of working capital to invest in inventory. To develop adequate inventory plan, it is necessary to have thorough knowledge of the objectives of inventory management and inventory management techniques.

A firm neglecting the management of inventories will be jeopardizing its long-run profitability and may fail ultimately. It is possible for a company to reduce its levels of inventories to a considerable degree e.g., 10 to 20 percent, without any adverse effect on production and sales, by using simple inventory planning and control techniques. The reduction in excessive inventories carries a favorable impact on company profitability.

Objectives of the study. Generally the objective of the present case study to analyze the inventory Management Analysis in particular this analysis aims at. To analyze the stock control in Axend Labs adopting ABC Technique. To estimate the EOQ for the Axend labs To calculate the stock control levels of Inventory. To present analysis of Inventory Ratios. To suggest necessary measures for an effective Inventory Management System for the Axend labs

SCOPE AND METHODOLOGY Scope: Raw materials contribute a single largest expenditure item, which account for nearly 70% of the total value. The important of the inventory management lies in the fact that in significant contribution made in reducing material cost through proper control will go a long way in improving the profitability and R.O.I. Fixed assets constitute capital already suck and the only scope for improving the R.O.I. lies in the efficient management of materials. So the inventory control assumes greater importance. Holding inventory is inevitable for keeping the production wheels running. It also acts as lubricant and spring for production, distribution system. But holding costs are involved in inventory control tool guide in formulating an inventory policy for various raw materials, which goes in the production process. The study has been conducted to know the most suitable and economies maintenance of inventory for Axend Labs

Company profile

Axend Labs company engaged in the business of manufacturing and marketing of Bulk Drugs for over 10 years. After showing a continuous growth, the company started expanding into new markets. In 2005, Axend labs introduced Veterinary products to its existing product line. The company plans to introduce new products and undertake Research & Development in its new state of the art facility. The company's focus is manufacturing off patented products using new non-infringing processes. The world is our market, says the Managing Director. Truly living up to his word, Axend Labs has planning to extended their wings in across Asia. In addition, it also holds a strong presence in the growing domestic Indian market. Axends commitment of providing high quality goods in a timely manner at a competitive rate remains its strength.

MISSION To develop, manufacture, and sell cGMP Active Pharmaceutical Ingredients, and finished Veterinary products. To work on developing new biotech products that will improve the quality of human life. To create value for all our customers, partners, and employees while applying environmentally safe and socially responsible business practices.

VISION To specialize, and become world leaders in each of its market segments by using an overall strategy of accelerated growth through research, and exceptional customer relationship services.