Inventory Management- With Reference To Duke Fashion India Limited, Ludhiana

The inventory management is used in two ways- unit control and value control. Production and purchase officials use this word in term unit control whereas in accounting this word is used in term of value control. The cost of material used in production surpasses the wages and production overheads. Hence, the proper management and opportunity control of capital invested in the inventory should be the prime responsibility of accounting department because resources invested in inventory are not earning a return for the company. Established more than three decades ago "DUKE" today is a popular household name in India. Consistently providing the Indian consumers, their means of maximum satisfaction by giving them best quality products and services at affordable prices. Duke group of companies is leading the group. Duke is known as T-Shirts "King". It has left its impact not only in Indian market, but internationally too. In recent study of O.R.G. Duke is ranked as No.l brand in T-Shirts. It was started by the name of Dee-Kay Knitwear around 44 years ago. Mr. Komal Kumar Jain along with Mr. Nirmal Jain and Mr. Anil Jain laid its foundation. Duke has its own dyeing, processing, mercerizing, knitting and stitching units with full infrastructure. The company has its offices in India, Dubai and Sri Lanka. Today it is a giant textile group with annual turnover about 365 crores. The objectives of the study is to find out the efficiency of Inventory management in Duke Fashion India Ltd, to have a practical experience of the functioning of the Finance Department of a Garments manufacturing company, to find out the difference between the theoretical and practical aspect of inventory management. At the end, we conclude that the Chi-Square Test by rejecting the null hypothesis reflects a relation between sales and inventory. In addition it supports the fact that the performance of inventory management is satisfactory. There had been significant differences between actual Inventory Turnover Ratio and trend Inventory Turnover ratio. At the same time there had been a significant difference between actual Inventory Holding Ratio and trend Inventory Holding Ratio.