Abramovitz and Modigliani (1957) Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an original essay They highlighted the relationship between capacity utilization and inventory investment. The existing stock of inventory was expected to adjust to desired levels. Therefore the variable, the existing stock of inventory, was essential to be negatively correlated with the desired stock. The result was that there is a positive relationship between 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 investment in the current period as well. Krishna Murthy (1964) The study was aggregative and treated inventories in the private sector of the Indian economy as a whole for the period 1948-61. This study used sales to represent product demand and suggested the importance of the accelerator. The short-term interest rate was also significant. RS Chadda (1964) A study was conducted on the inventory management practices of Indian companies. The analysis suggested the application of modern scientific inventory control techniques such as operations research. These modern scientific techniques offer opportunities to companies, companies can minimize their investment in inventory but there is a continuous flow of production. 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 stock investment tools. National Council of Applied Economic Research (NCAER) (1966) Conducted a study in 1966 concerning working capital management of three industries: cement, fertilizer, and sugar. This study is mainly dedicated to analyzing the relationship between composition, utilization and financing of working capital for the period from 1959 to 1963. The study reveals that inventories constituted a major part of working capital, i.e. 74.06% in industry sugar, followed by the cement industry (63.1%). ) and the fertilizer industry (59.58%). It was observed that the inventory had not been managed properly. Regarding the utilization of working capital, the cement and fertilizer industry had better implementation of working capital. The sugar industry had a huge inventory build-up, so there was inefficient use of working capital. The Administrative Reform Commission (1967) made some recommendations to reduce stock levels. The RBI study group(25), mandated to frame guidelines and establish norms for bank credit applicable to all classes of industrial borrowers (popularly known as the Tandon Committee Report), has classified the inventories prescribing inventory norms for fifteen industries. The Stock Audit Committee (26), appointed by the Bureau of Public Enterprises (BPE) in 1972, examined the inventories of the three public sector undertakings, namely Hindustan Shipyard Limited (HSL), Hindustan Cables Limited (HCL) , National Mineral Development Corporation Limited (NMDCL). The committee set inventory levels for HSL and made some concrete recommendations to reduce inventory levels in all three enterprisesKrishnamurty and Sastry (1970). It is the most comprehensive study of manufacturer inventories. They used CMI data and consolidated balance sheet data of public limited companies published by the RBI, in order to analyze each of the components.