Inventory Problems in Public Sector Enterprises in India

Introduction This research project was undertaken to gain an insight into the problem areas of the public sector manufacturing companies in various materials management functions. A representative sample was chosen in the engineering products manufacturing group which enabled the specific problems of this homogeneous group's especially high inventory to sales ratio to be analysed. Based on the experience gained in the class rooms and in the consultancy assignments certain assumptions were made with regard to high inventory to sales figures, and a questionnaire was designed and tested on the basis of these assumptions. The tested questionnaire was then sent to the representative sample of the companies and was followed by visits by the members of the research team to the companies during which important clarifications and more specific information were obtained through discussions with the senior executives of these companies.