ASSESSMENT OF INVENTORY MANAGEMENT AND CONTROL PRACTICE IN SOFT DRINK MANUFACTURING COMPANY: THE CASE STUDY ON EAST AFRICA BOTTELING S.C (EABSC)

Abstract

The purpose of the study is to assess the inventory management and control system in soft drink manufacturing company the case study on East Africa Share Company S.C (EABSC).The research target on the gap in the inventory management and control system between the disparity of the physical inventory balance amount and the software inventory balance amount. To do this the researcher use descriptive research design such as percentage and frequency tables are used and both qualitative and quantitative research approach this sampling method helps to get respondents who have good insight of inventory. Therefore, the study takes 65 respondents as target respondents. Both primary and secondary were use. To analyses the data the SPSS version 20 for windows are used. The major finding of the study is in inventory management techniques and internal controls in the inventory management practices are goes in a good condition but there has to be an area which needs correction on inventory management practice and in current inventory records and documentation practice of the company. Those are on up to date inventory revaluation means fixed asset show the correct balance and also place order in inventory reaches a predetermined discrepancies between stock records and the result of physical count record method. The researcher recommends that there is need for EABSC Use inventory management software to help prevent overstocking and under stocking and FIFO inventory management technique help to manage inventory and the financial impact of carrying inventory on the point they use it but it has better on it. And also, engage with employees and Match training and development with employee and management goals then create a formal program, Schedule frequent stock auditing like daily cycle counting of different stock categories in small, manageable batches and Integrate inventory management software adopt proper and up to date fixed asset revaluation method by adjusting the gross book value of the asset. Correct location the stock also re arranges or do correct actions in return management on behave use inadequate technology or use the perpetual inventory system and the periodic inventory system. Always maintain an accurate count of a company's available stock, maintained under the perpetual inventory system lastly, use effective internal control because it reduces the risk of both erroneous and inappropriate actions.