“A STUDY ON INVENTORY MANAGEMENT

OF PHARMACEUTICAL INDUSTRIAL
UNITS IN RAIGAD DISTRICT”
A
Thesis submitted to,

SHIVAJI UNIVERSITY, KOLHAPUR

DOCTOR OF PHILOSOPHY
IN

COMMERCE
Under the faculty of

COMMERCE AND MANAGEMENT

MR. RAKESH SHRIKANT SONAR

Under the Guidance of

DR. A. B. WAGHMARE
(M.Com.M. Phil. D.H.E , Ph. D. )
EX. HEAD OF DEPARTMENT OF COMMERCE
CHINTAMNRAO COLLEGE OF COMMERCE, SANGLI

DEPARTMENT OF COMMERCE AND MANAGEMENT

1) RECOMMENDATIONS
 The budgetary allocation and number of personnel available to the inventory
management department must be increased over time in response to changing
organizational needs and market demands. In other words, management must
ensure that resources available to the inventory management department are
upgraded periodically to meet the firm’s production capacity as well as market
demand.
 The company should employ the economic order quantity method when placing
orders. The economic order quantity model puts into account the relevant costs
associated with ordering and carrying inventory. Every business organization
aims at reducing cost to the barest minimum and one of the avenues by which
this could be achieved is adopting the economic order quantity method of placing
order.
 It is recommended that enough stock be kept in order to prevent stock-outs so
that there will be enough to deliver when order volume is high. The flow of
information should be increased and should be circulated adequately in order to
enhance adequate updates of inventory records.
 Implement a Supply Management System: Manually managing inventory can
lead to errors, missing supplies, overspending, and inefficiency. Implementing a
supply management system can eliminate errors and create a more consistent
process that makes it easier to document usage, prepare reports and maintain
compliance. A supply management system can help your hospital or medical
facility save time and money by protecting your equipment and allowing you to
find its location at all times.
 Monitoring stock levels: It used to take a lot of time for pharmacy workers to
hand count products in order to monitor stock levels. The inventory levels in
today's PMR systems can be updated automatically as things are sold by
synchronizing with your ePOS systems. They alter an item's price, which will be
immediately applied the following time the item is sold. The software also
provides a real-time picture of stock levels, guaranteeing that they have the
knowledge necessary to optimize them.

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 It is suggested that the company can work towards improving its inventory
management practices, reducing costs, and achieving a healthier and more
sustainable inventory growth pattern. Regular monitoring and adjustment will be
key to ensuring long-term success in inventory management.
 The use of computers in companies for material ordering and tracking. Based on
the information provided, it appears that a significant portion of companies (55%)
frequently use computers for these purposes, while another 35% use them but
perhaps not as frequently. Here are some suggestions based on this information:
 Invest in Computerization: Businesses that do not currently use computers for
material ordering and tracking may want to think about doing so. It can simplify
procedures, increase effectiveness, and lessen mistakes.
 Training and Skill Development: It might be advantageous for businesses that
already use computers to invest in employee training and skill development. By
doing so, they may maximize the advantages of computer systems by using them
more effectively.
 Benchmarking: Companies businesses should think about comparing their
procedures to industry best practices. Particularly in the ordering and tracking of
materials, this might assist pinpoint opportunities for development and
optimization.
 Data Security: As the world becomes more computerized, data security must be
given top priority. Make sure that there are strong security safeguards in place on
the systems used for material ordering and tracking.
 User Feedback: Ask staff members who utilise the computer systems for
managing materials for their feedback. Their opinions can be used to find
problems and areas that want improvement.
 Integration: Examine the possibilities for linking the ordering and monitoring of
materials with other corporate functions like accounting and inventory control.
Operations may run more smoothly as a result of integration.
 Continuous Improvement: Material ordering and tracking processes should be
continuously monitored and improved upon. Encourage a culture of continuous
improvement within the organization.
 Adoption Strategy: Develop an adoption strategy for businesses looking to
enhance the use of computers for material management that includes training
initiatives, rewards, and transparent explanations of the advantages. Remember
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 that the specific actions will depend on each company's unique circumstances, but
these suggestions can serve as a starting point for companies looking to optimize
their material ordering and tracking processes through computerization.

2) CONCLUSIONS
This study discovered that inventory management has a favorable impact on
managerial and operational effectiveness. Therefore, it is argued that expanding
inventory control's scope and efficacy can enhance a company's performance in terms
of operational and inventory efficiency. Businesses can also gain benefits from taking
action to increase the efficiency of stock management. It is likewise confirmed that
organization size and capital length make a vast superb effect on stock control. The
ensuing conclusion is that as sources are increased in terms of personnel and
resources, inventory control gets better. The impact that inventory management has
on operational and marketing performance was lessened when firm size, industry, and
capital size were taken into account. This, coupled with the positive effect of capital
and firm size on operational and marketing performance, suggests that organizational
resources make a major impact on firm performance depending on how management
controls them. The efficiency of stock control in a manufacturing operation was
examined, and it was found that stock is the foundation of any production company's
existence and that successful control of inventory leads to effective control of the
organization. However, anything gadget or technique of inventory management, it a
whole lot be channeled toward the reduction of stock to the barest minimum. These
stock techniques should be monitored to ensure its effectiveness. Maximum
corporations are continually preserving stock accounting system. The companies are
keeping the records of inventory. As per the data there are Maximum companies are
always keeps the records of inventory. ABC analysis is a type of technique that
enables you to identify the factors that have the most impacts on the total cost of
inventory for an organization. Since it considers material consumption, many
academics suggest utilizing the ABC inventory approach. Few benefits of inventory
management include reducing lead times, reducing dead stock materials, controlling
dead stock materials, improving space management, controlling dead stock materials,
and providing the appropriate amount of incoming inventory with better material
handling.

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3) SUMMARY
 Introduction and Research Methodology: This chapter deals with Introduction of
the topic, statement of the problem, objectives of the study, hypotheses of the
study, research methodology which includes data collection methods, data
analysis methods, significance of the study, scope and limitation of the study, and
chapter scheme of the study.
 Review of Literature and Conceptual Framework: This chapter includes overall
review of literature related to selected topic as well as the conceptual framework
which helps to clear the various concepts related to selected topic.
 Chapter III –Profile of the Study area: This chapter deals with the brief profile of
the selected industrial units from Raigad district and Overview of the Raigad
district. The recent data have been taken into consideration for the present
research topic. This chapter creating a profile of a study area involves providing
detailed information about the geographic location, physical characteristics,
demographic data, and relevant features of the area under investigation.
 Chapter IV – Data Analysis and Interpretation: This chapter includes the data
analysis and its interpretation. Data collection and analysis are considered to be
the most important steps and a core of research work. With the help of statistical
tools and proper techniques, the next logical step is to analyse and interpret the
data in order to find empirical solutions to the problem. The above chapter "Data
Analysis and Interpretation" is divided into the following five sections:
 Section I - Analysis with Respect to Manager Perspectives
 Section –II - Analysis with Respect to Store Manager Perspectives
 Section –III - Analysis with Respect to Account Manager Perspectives
 Section-IV: Analysis of Performance of Inventory
 Testing Of Hypothesis For the data analysis of the research, the researcher used
various tools and techniques, such as the mean, standard deviation, and stepwise
regression. In order to test the hypothesis, the researcher applied a one-way
Analysis of Variance Correlation, and T-test was performed by using SPSS (demo
version 20) and Microsoft Excel.
 Findings, Suggestions and Conclusion: This chapter involves the findings,
suggestion and conclusion of the research study. The present chapter aims to
collect the various phases of the study and summary of the research with the main

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 findings has been presented. In this chapter, an attempt is made to bring the key
findings and to arrive at the conclusion. Based on these findings, a few
suggestions have also been made. The study also throws light on The study also
throws light on future directions.
 Findings related to Manager Perspectives
 Findings related to Store Manager Perspectives
 Findings related to Account Manager Perspectives
 Findings related to Performance of Inventory

4) FUTURE FINDINGS
1. Maintaining Inventory Accounting System. There are 90 percent companies are
always maintaining the inventory accounting system. It is observed that maximum
companies are always maintaining inventory accounting system. Inventory
management helps track what's in stock and what's on backorder, so they don't
oversell products. Cost Savings: Stock costs money until it sells. Carrying costs
include storage handling and transportation fees, insurance and employee salaries.
2. Keep Records of Inventory: It is found that the companies are keeping the
records of inventory. As per the data 10 percent companies are frequently keeps
the records of inventory and 90 percent companies are always keep records of
inventory. It is observed that maximum companies are always keeps the records
of inventory. Inventory records are repositories of data pertaining to each item in a
brand's product line, including: What's in stock at the SKU level. What's been sold
and reordered the product's value. (T-128)
3. Inventory Controlled Technique Can Reduces Cost: Inventory controlled
technique can reduces cost as per the data 40 percent companies are not keeping
inventory controlled. Technique can reduces cost and 60 percent companies are
keep the inventory controlled techniques can reduces cost. Most of the companies
are keep the inventory controlled technique which can reduces cost. (T-4.129)
4. It is seen that the proper control over the receipt and issue of material. There are
10 percent companies are frequently control properly over receipt and issue of
material. There are 90 percent companies are always have proper control over
receipt and issue of material. It is observed that maximum companies have always
proper control over receipt and issue of material. (T-4.130)

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5. Here are some potential future findings and trends:
 Increased Research and Development (R&D) Investment: India has been
gradually increasing its investments in pharmaceutical R&D. In the future, we can
expect more innovative drug discovery and development efforts, including
biologics and bio similar.
 Digital Health and Telemedicine: The COVID-19 pandemic accelerated the
adoption of digital health technologies and telemedicine services. In the future,
pharmaceutical companies in India may invest more in digital health solutions,
including remote patient monitoring and telehealth platforms.
 Drug Manufacturing and Supply Chain Resilience: The pandemic also
highlighted the importance of a resilient drug manufacturing and supply chain.
India may invest in strengthening its pharmaceutical supply chain and reducing
dependence on single-source suppliers.
 Regulatory Changes: The Indian pharmaceutical industry may see further
regulatory changes to streamline drug approvals, enhance quality control, and
promote innovation.
 Global Collaborations: Indian pharmaceutical companies may continue to forge
partnerships and collaborations with global pharmaceutical giants for research,
development, and distribution.
 AI and Machine Learning: The use of artificial intelligence (AI) and machine
learning in drug discovery and development may become more prevalent in India,
leading to faster and more efficient processes.
 Environmental Sustainability: Concerns about environmental sustainability may
lead to greater focus on green manufacturing practices and reducing the
environmental impact of pharmaceutical production. The specifics may vary based
on government policies, market dynamics, and global events. To get the most
accurate and up-to-date information on the future of the pharmaceutical industry
in India, it's essential to consult industry reports, news sources, and experts in the
field.
 Digitalization and Automation: Pharmaceutical companies in India may
increasingly adopt digital technologies and automation to optimize inventory
management processes. This could include the use of advanced software and data
analytics to forecast demand accurately and manage inventory levels efficiently.

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 Supply Chain Visibility: Enhanced supply chain visibility through blockchain
technology may become more prevalent. This can improve transparency,
traceability, and accountability in the pharmaceutical supply chain, which is
essential for inventory management.
 Demand Forecasting: Advanced machine learning algorithms and artificial
intelligence can help pharmaceutical companies in India improve demand
forecasting accuracy, leading to better inventory optimization and reduced
carrying costs.
 Regulatory Compliance: Pharmaceutical companies in India will continue to focus
on complying with regulatory requirements, including Good Distribution Practices
(GDP) and serialization. These regulations impact inventory management
processes to ensure product quality and traceability.
 Supplier Collaboration: Collaborative partnerships with suppliers and
distributors may increase to ensure a seamless flow of products through the supply
chain. This can help reduce lead times and prevent stockouts.
 Inventory Risk Management: Companies may invest in advanced risk
management strategies to mitigate potential disruptions in the supply chain,
whether caused by natural disasters, geopolitical issues, or pandemics.
 Data Security: As digitalization increases, securing sensitive inventory data will
become paramount to protect against cyber threats and ensure the integrity of
supply chain operations.

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