This project analyzes the inventory management practices of Bharat Heavy Electricals Limited (BHEL), a leading public sector engineering and manufacturing enterprise in India. Effective inventory management is crucial in large-scale manufacturing organizations like BHEL to minimize holding costs, avoid stockouts, and ensure smooth production cycles. The study aims to evaluate how BHEL manages its inventory levels, procurement processes, and material planning to optimize operational efficiency and cost-effectiveness. Using data from annual reports, supply chain records, and relevant financial documents, the project examines key aspects such as inventory turnover ratio, Economic Order Quantity (EOQ), Just-In-Time (JIT) practices, and classification of inventory (raw materials, work-in-progress, and finished goods). The analysis highlights BHEL’s challenges in managing large and diverse inventory due to its complex project-based operations and long production cycles. However, it also identifies strategic initiatives taken by the company to improve material planning, implement automation, and reduce excess stock. The study concludes that while BHEL has a robust inventory management framework, there is potential for further optimization through modern technologies like ERP and data analytics.
Inventory management, BHEL, supply chain, inventory turnover, EOQ, JIT, raw materials, work-in-progress, finished goods, manufacturing efficiency, cost control.
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