AN ASSESSMENT OF INVENTORY MANAGEMENT SYSTEM THE CASE OF HABESHA CEMENT SHARE COMPANY

Abstract

This research sought to examine the assessment of inventory management system of Habesha Cement Share Company. The study is applied descriptive reserach design and mixed research approach. The target population was the total number 48 employees of Habesha Cement Share Company. Primary data were gathered using structured questionnaires and interview. the questions were closed ended format. The study result revealed that the inventory management system of Habesha Cement Share Company is somehow effective in managing the inventory level. However; further improve is required in areas like inventory physical counting inspection, handling of overstocking and under stocking of inventories, data accuracy and real time report preparation. Moreover, the Company is mainly used perpetual inventory system to determine the materials demand of the customers. More importantly, lack of management support, insufficient qualified staffs and shortage of training are the major problems for assessment of inventory management practices. Based on the findings, the study recommends that the managements of the company should work hard to have its own standards and policies of inventory management the current inventory control practices and procedures need to be reviewed and redesigned. The management should stay up-to-date on inventory carrying cost. Only qualified and adequately trained personnel should be involved in stock control