Abramovitz and Modigliani (1957)Say no to plagiarism. Get a tailor-made essay on “Why Violent Video Games Should Not Be Banned”? Get an original essay They highlighted the relationship between capacity utilization and inventory investment. Existing stocks had to adjust to desired levels. Thus, the variable, existing inventory stock, was essential to be negatively related to desired stock. The result is that there is a positive relationship between the inventory-to-sales ratio and inventory investment. A high inventory-to-sales ratio in the past suggests the need for high inventory levels in the past and the promise of high inventory investments in the current period as well. Krishna Murthy (1964) The study was aggregative and dealt with stocks in the private sector of the Indian economy as a whole for the period 1948-61. This study used sales to represent demand for the product and suggested the importance of the accelerator. Short-term interest rates also proved important. RS Chadda (1964) A study was carried out on the inventory management practices of Indian companies. The analysis suggested the application of modern scientific stock control techniques such as operations research. These modern scientific techniques provide opportunities for businesses. Companies can minimize their investment in inventory but the production flow is continuous. He argued that industrially advanced countries, such as the United States, were engaged in developing highly sophisticated mathematical models and techniques to modernize and redefine existing inventory investment tools. The National Council of Applied Economic Research (NCAER) (1966) conducted a study in 1966 on working capital management of three industries namely cement, fertilizer and sugar. This study is mainly devoted to the analysis of the composition, utilization and financing ratios of working capital for the period from 1959 to 1963. The study reveals that inventories constituted a significant part of working capital, i.e. 74 .06 percent in the sugar industry followed by the cement industry (63.1 percent). ) and the fertilizer industry (59.58%). It was found that stocks were not managed properly. Regarding working capital utilization, the cement and fertilizer industry had better working capital utilization. The sugar industry had a huge accumulation of inventories, which led to inefficient use of working capital. The Administrative Reforms Commission (1967) made some recommendations to reduce inventory levels. The RBI Study Group (25), appointed to develop guidelines and establish bank credit standards applicable to all categories of industrial borrowers (popularly known as the Tandon Committee Report), has classified the inventories prescribing inventory standards for fifteen industries. The Stock Control Committee (26), appointed by the Bureau of Public Enterprises (BPE) in 1972, examined the inventories of three public sector undertakings, namely Hindustan Shipyard Limited (HSL), Hindustan Cables Limited (HCL), National Mineral Development Corporation Limited (NMDCL). The committee set HSL's inventory levels and made concrete recommendations to reduce inventory levels at all three companies. Krishnamurty and Sastry (1970) This is the most comprehensive study of manufacturers' inventories. They used CMI data and data from the consolidated balance sheet of public companies. limited liability companies published by the RBI, in order to.