RESEARCH METHODOLOGY

RESEARCH PROBLEM
Research can be defined as an organized, systematic, database, critical objective, scientific inquiry or investigation into a specific problem, undertaken with the purpose of finding answer or solution to it.

DATA COLLECTION METHOD:

There are two sources of data 1. Primary Data 2. Secondary Data

1) Primary Data:
The primary data are those are collected a fresh and for the first time and thus happen to be original in character. The researcher for his study has used only the secondary data.

2) Secondary Data:
The secondary data, on the other hand, are that which have already been collected by someone else and which has already been passed through the statistical process. The researcher for the purpose of the study has collected data which was purely secondary in nature the information collected from journals, abstract of inventory reports trail balance and balance sheet of the company manuals websites etc.,

FIELD WORK:
The period of the study is restricted to two months. Starting from February March 2012 during the period, the following research activities were carried out successfully. 1. The objectives of the study were set up. 2. Data were collected from the annual reports and abstract of inventory reports issued by Bharat Heavy Electricals Ltd., 3. Data were analyzed with the help of statistical tool like inventory control techniques. 4. Data were interpreted with the help of tables, figure / charts, etc., Based on the analysis of data, findings, suggestions and conclusion were drawn successfully. Finally a report is generated.

Research Design:
Research design is the arrangement of conditions for collection and analysis of data in manner that aims to combine relevance to the research purpose with economy in procedure.

Analytical research design:

In this study, analytical research design is used for the inventory analysis of the company. Analytical Research is the study of an implication that existence of, or a change in. one variable causes or leads to an effect on the other variable. In proposing or interpreting causal relations the researcher uses analyzing tools to interpret the cause effects.

ANALYSIS TOOLS AND TECHNIQUES:

a. EOQ analysis (Economic Order Quantity). b. ABC analysis (Always Better Control). c. XYZ analysis. d. Maximum Stock Level e. Minimum Stock Level f. Average Stock Level g. Fast Moving Inventory h. Slow Moving Inventory i. Non Moving Inventory j. Material Turnover Ratio

k. Work In Progress Turnover Ratio l. Inventory Turnover Ratio m. Weighted Average Method n. Reorder Level