An Impact of Inventory Management on the Profitability of Pharmaceutical Companies : Evidences from India.

Abstract

This research paper intense to examine the relationship of Raw Material Inventory, Work In Progress Inventory and Finished Goods Inventory with the Operating Profit of the companies in Indian Pharmaceutical Sector. Raw Material Inventory, Work In Progress Inventory and Finished Goods Inventory having considered as independent variables and Operating Profit has been considered as dependent variable. The data was collected for Pharmaceutical Companies over a period of 10 years using techniques such as multiple regression the data was analysed. The study revealed that Finished Goods Inventory though has negative relationship with Operating profit, it is the most significant variable influencing Operating Profit of Pharmaceutical Companies.