SlideShare una empresa de Scribd logo
1 de 10
Descargar para leer sin conexión
European Journal of Business and Management
ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online)
Vol.5, No.28, 2013

www.iiste.org

An Assessment of Inventory Management in Small and
Medium Scale Industrial Enterprises in Nigeria
Olowolaju Monisola,
Department of Accountancy, Federal Polytechnic, Ado-Ekiti. P. M.B. 5351, Ado-Ekiti, Nigeria.
E-mail of the Corresponding author: olowomoni@yahoo.com
Abstract
Inventory is a vital asset, necessary for effective operation of any business organisation. The absence of good
inventory management practices in the Small and Medium Scale Industrial Enterprises (SMEs) necessitates a
study to determine the actual reasons for non application of scientific inventory management techniques in the
SMEs. Three hundred and twenty SMEs in Food, Textiles, Wood and Metal Products sectors in South Western
Nigeria were selected for the study. Two hundred and twelve organizations returned the questionnaire. It is
established that non usage of scientific inventory techniques for better inventory decision was due to lack of
skilled personnel and inadequate data to use inventory models; and low level of ICT in the SMEs. It is
recommended that the SMEs should institute structure to improve the knowledge of their personnel about using
quantitative inventory decision models and the SMEs should make the application of Information
Communication Technology (ICT) for data management a priority.
Keywords: Inventory, Just-In-Time, organisation, Economic- Order- Quantity, Re-order- Quantity, Profitability
1.0 Introduction
Inventory constitutes a very significant portion of the current assets of manufacturing organisations. Considering
the level of investment required for inventory in manufacturing organisations it is imperative to manage
inventory efficiently and effectively in order to avoid idle resources and also ensure production continuity.
Inefficient management of inventory can lead to underutilisation of capacity and loss of profit. The under
utilisation of capacity can aggravate the unemployment problem in any economy. In many developing
economies, small and medium scales enterprises employ substantial number of the work force Therefore,
efficient management of inventory in small and medium scale manufacturing firms is imperative for meaningful
economic growth of any country.
1.1 Statement of the Problem
Efforts of many countries to encourage small and medium scale industrial enterprises have been directed towards
provision of fund; however, in most cases the crucial problem of management has not been addressed. There is
no doubt that small and medium scale manufacturing organisations contribute significantly to the nation
economic growth and that inventory is crucial to the sustenance of their operations. Small and Medium scale
manufacturing industries are in most cases faced with the problems of inadequate inventory of raw materials and
spare parts. These shortages often lead to breaks in production schedule, machine breakdown and low capacity
utilisation and thus constituted a barrier to their effective growth. This paper therefore examined these inventory
management problems and their impact on the performance of small and medium scale manufacturing
organizations.
1.2 Objectives of the Study
Considering the strategic importance of inventory to effective operations of an industrial enterprise and in view
of the problems highlighted above, this study was to examine the different inventory management practices in
the small and medium scale industrialenterprises and assess their impact on the inventory decisions on
the organizations.

150
European Journal of Business and Management
ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online)
Vol.5, No.28, 2013

www.iiste.org

2.0 Materials and Methods
Small and Medium Scale Enterprises as a concept defies universal definition both among academics and
practitioners. It has been both relative and dynamic, varying from country to country, even over time and among
industries. The development of small and medium scale industries is very important to the growth of a nation
especially a developing country. Ogunleye (2000) stated that small and medium scale enterprises are particularly
relevant in creating employment opportunities, mitigating rural urban drift, producing specialized items in small
quantities to meet diverse needs, mobilization of local resources as well as stimulation of technological
development and innovation. This view was also expressed by Edwardson (1989). (Loveman and Sengenberger,
1992) acknowledged the superiority of small-scale industrialization strategy in promoting economic growth. As
a matter of fact, a positive correlation between the emergence of an active small-scale industrial sector and the
commencement of rapid economic growth and development can always be established. A practical illustration is
the recent transformation of some South East Asian economies from rudimentary states to high-industrialized
ones in the second half of the last century.
To achieve the desired contribution of SMEs to the industrial growth of a nation, the management of inventory in
these organisations is of utmost importance. Inventories are goods that are kept to meet future demand and to
ensure production continuity. It is a very important asset in any business organisation. The management of this
vital asset is very important for the efficiency, effectiveness and profitability of the business. Forgionne (1986),
Adeyemi and Salami (2010) claimed that the astute manager who understands the virtues of each of the
component of inventory could use them selectively to implement corporate strategy in the market place. An
organisation can strategically build up inventory for market promotion and also to stabilise production
schedule. Inventory management is crucial to organisation success since holding too little or too much stock has
negative effect on the organisation’s performance.
The problem of inventory has continued to receive much attention in most businesses. Inventory levels of raw
materials, semi-finished and finished goods need to be effectively managed to control the cost of inventory
(Kotler, 2002). t is common to find the balance sheet of an average company having inventory running to 60%
of its current assets as capital tied down Pandey (2005). Apart from this, much has to be expended additionally
to keep it useful. To keep production going, some level of inventory is desirable. Despite the marvel of
computer, automation and scientific management, the production process and marketing activities cannot still
avoid the need to have inventories.
Jegede (1992) stated that the necessity of keeping stock arises because of the time lapse between purchasing,
production and eventual sale to customers. The major concern is how inventory can be controlled to minimise
waste and cost. Thus an efficient inventory policy is always an important requirement for the successful
management of manufacturing and distributing enterprises.
Inventory planning is a major tool of capacity planning and every organization must ensure effective inventory
planning to enhance efficient and effective capacity utilization. Orlicky (1975) identified the main purpose of a
basic material requirement planning as to control inventory level, assign operating priorities for items, and plan
capacity to load the production system as well as to order the right part, order the right quantity and order at the
right time. In their contribution to importance of inventory Chase and Aquiliano (1985) mentioned that the
objectives of inventory management under the material requirement planning system are to improve customers’
service to minimize inventory investment, and to maximize production operating efficiency. Garrison and
Noreen (2000) opined that the selection of the right level of inventories involves balancing three groups of costs.
These cost are: inventory ordering cost, inventory carrying costs, the cost of not carrying sufficient
inventory and opportunity cost. Plane (1994) observed that if inventory levels are low, the cost associated with
keeping inventory on hand is small, but orders are place more frequently to replenish items, to avoid running out
of stock always.. If inventory levels are very high, maintaining these inventories is expensive but there may be
benefits from obtaining larger lot sizes from suppliers. Schreibfeder (2001) stressed that cost of carrying is a
critical factor in deciding what products to stock and when to re-order them as well as the best quantity to
order. However, companies and organization often use an imprecise ‘rule of thumb’ to estimate their cost
of carrying inventory and the resultant effect is bad inventory management.
Just in time inventory (JIT) is the modern concept in inventory management aimed at reducing inventory costs.
With just in time inventory, the exact amounts of good items arrive at the moment they are needed. Adam and
151
European Journal of Business and Management
ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online)
Vol.5, No.28, 2013

www.iiste.org

Ebert (1993) defines Just in Time as a manufacturing system whose goal is to optimize processes by
continuously pursuing waste reduction. Chase and Aquilano (1985) stated that Just In Time (JIT) requires the
production department to project precisely the necessary units in the necessary quantities at the necessary time
with the objectives of achieving plus or minus zero performance to schedule; it means that production of one
extra piece is just as bad as being one piece short. Anything over the minimum amount necessary is viewed as
waste. The idea of JIT is to drive all queues toward zero in order to minimize inventory investment, shorten
production lead time, react faster to demand changes and uncover any quality problem. Barker (1989) opined
that the JIT is a dynamic approach introduced in recent years that demand total commitment from
management. Kaynak and Pagani (2003) stated that production and operations research has shown that JIT
Purchasing can potentially have benefits to the firms in the form of increasing product quality, improving
supplier/buyer relationships, and increasing sales. Akintoye (2004) stressed that the closeness of a company to
the ideal JIT situation depends on the type of production process and the nature of suppliers industries.
Inventory decisions are of interest to many functional and line managers in every organisation since these
decisions may have direct impact on their departmental performance. Forgionne (1986) stressed that inventory
policy involves resolving organisational conflicts since all departments connected with inventory in the
organisation have different views of what quantity of inventory to keep. Sound management should consider all
view points and develop a policy that minimise total related inventory cost. Dominiak and Louderback (1997) in
their contribution to the issue of conflict of functional department in respect of inventory levels to be maintained
noted that sales managers, finance manager and production managers have different views on the desirable
inventory level. This conflict of inventory objective is always resolved with great difficulty in a manufacturing
environment. Brigham (1983) opined that proper inventory management require close coordination among the
sales, purchasing, production and finance departments since improper co-ordination among the departments can
lead to disaster and sub optimisation.
The study was carried out in Southwestern states of Nigeria which include Lagos, Oyo, Ogun, Osun, Ondo and
Ekiti states. The Southwestern states were chosen because of the existence of a good concentration of Small and
Medium Scale Industries within the region The sample size consist of 320 organisations selected within these
states. In view of the relative sizes of the states, the purposive sampling method was adopted for the study in
order to include dominant industries. The study covered companies engaged in Food and Beverages, Textiles and
Wearing Apparels, Wood and Wood Products and Fabricated Metal Products. The questionnaire and oral
interview techniques were adopted for this study. The questionnaire method was used to gather primary data,
which was supplemented by oral interview with relevant officials of some of the organizations included in the
sample. Out of the 320 organizations 212 returned the completed questionnaires .The data collected were
subjected to statistical analysis. Simple percentage (%) and 5-point Likert rating. The ratings were tested using
Duncan multiple range test.
3.0 Results and Discussion
3.1 Results
Table 1 shows the usage of inventory models and forecasting methods. About 25% responded positively to the
use of Economic Order Quantity (EOQ) Model. The interview of some respondents revealed that the Economic
Order Quantity Model was not used simply because of inadequate data to use the model. This was also
confirmed in the response as 178 (83.96%) stated that their organizations could not generate sufficient data for
stock cost which is necessary to use the model. Table 1 also reveals that application of other forecasting models
was not common in the SMEs while executive judgment was the major approach (88.68%) used for determining
production inventory levels. Table 2 shows that 134(83.75)% of the respondents indicated inadequate
knowledge for not using the EOQ model while (1.25%) indicated that non usage was due to its non relevance
to their operations. The result suggested that majority of the SMEs staff have not been exposed to the use of
inventory models for inventory management. The result obtained on the usage of Economic Batch Quantity was
not different from that of EOQ because only 26(12.26%) responded positively to the use of Economic Batch
Quantity Model while the remaining 186 (87.73%) responded negatively. Majority of the organizations 130
(61.32%) adduced the reason for non usage to inadequate knowledge, while 14(7.53%), 8(3.77%) and
24 (12.90%) gave time wasting, inadequate data and non relevance to operations respectively as reasons for non
usage of EBQ models.

152
European Journal of Business and Management
ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online)
Vol.5, No.28, 2013

www.iiste.org

The results in Table 3 shows that (49.66%) of the respondents did not use any regular valuation method, they
only value their stock as and when necessary. This consist of 14.15%, 13.21%, 10.37% and 11.32% from Food
and Beverages, Textiles and Wearing Apparel, Wood and Wood Products and Fabrication and Metal Products
sectors respectively Annual valuation method was used by 72(33.98%) while only 24 (11.32%) used the
perpetual valuation method. The remaining 12(7.67%) of the respondents did not specify any method. Perpetual
inventory valuation is very ideal for early detection of fraudulent practices in the stores and organizations need to
be encouraged to use this method of stock valuation. Table 5 further shows that 158 (74.53%) of the
organizations used manual processing method while 40 (18.86%) used semi computerized and only 14 (6.60%)
fully computerized their inventory processing. The table also reveals that out of the 74.53% that used manual
processing method; 19.81%, 17.96%. 16.04% and 20.75% were from Food and Beverages, Textiles and Wearing
Apparels, Wood and Wood Products and Fabrication and Metal Products sectors respectively. This shows that
the use of manual processing by SMEs is prevalent in all sectors and also indicates a low level of application of
modern information management technology to inventory by the SMEs despite the numerous advantages. The
application of ICT to operations by SMEs could be very effective in improving their capability inspite of the low
level of staffing.
The fixed quantity order system was embraced by most of the SMEs (42.50%). About 34% applied Material
Requirement Planning system, 12.26% used Just In Time (JIT) system, 6.60% used Cyclical Order system while
the 4.72% who did not respond to the question implicitly did not have any specific system. All the various
ordering methods were used in all the sectors except JIT for which there was no response in the Food and
Beverages sector. Some of the organizations that used JIT system were interviewed to really know if they
understand the JIT concept. Explanations received from these organizations confirmed that they understood the
concept and they believed their ordering method was more of JIT than any other ordering method, although they
expressed that many constraints made the JIT system to be very difficult to practice due to instability in
government policies. The fixed quantity system encourages tying down of capital. Those organizations that used
them explained that despite the shortcoming, it was better because the source of supply and lead time cannot be
very certain or accurately predicted. This indicates that they placed more emphasis on regular production and
customer’s satisfaction even at higher cost to the organization.
The study sought to know the impact of shortage of inventory on workers performance, machinery utilization
and profitability of the organizations in the different sectors. Using Likert rating index, the result revealed that
the mean rating of the impacts of shortage of raw materials on workers efficiency, machinery utilisation, and
level of profitability were 2.63, 2.46 and 2.27 respectively for Wood and Wood Products sector which were
negative (Table 4),were while that of textiles and wearing apparent sector for workers’ efficiency, machinery
utilisation and level of profitability were 2.53, 2.74 and 2.48 respectively which were also negative (Table 5).
The results for the Food and Beverages sector and Fabrication and Metal products sector in Tables 6 and 7 show
the same negative trend.
3.2 Discussions
The objectives of the study were to examine the different inventory management practices and access the impact
on the inventory decisions in SME Good inventory decisions are necessary to enhance efficiency and
profitability of various manufacturing organizations. It has been discovered in this study that there is a wide gap
between theory and practice of using models in arriving at inventory decisions in SMEs in the area of study. The
application of inventory models, ratios, valuation and processing in arriving at sound decisions in SMEs is
generally very low. Most decisions are based on rule of thumb and experience. The non usage of perpetual
inventory method as revealed by interview of some organizations was due to the manual processing of inventory
records and lack of emphasis on a structured inventory process. The inadequate number of relevant staff for this
exercise could also prevent organizations from adopting the perpetual method. This suggests the need for a
computerized system in order to facilitate the perpetual inventory approach.
Based on the findings of this study in respect of the problems identified, the following suggestions and
recommendations will be important to Small and Medium Scale manufacturing industries in order to enhance the
needed contributions of this sector to the economic growth.
(i) SMEs should institute structure to improve the knowledge of their personnel about
inventory decision models.
153

using quantitative
European Journal of Business and Management
ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online)
Vol.5, No.28, 2013

www.iiste.org

(ii) Resultant upon the fact that inadequacy of data was one of the impediments to application of quantitative
models for inventory, the SMEs should make the application of ICT for data management a priority.
It is expected that these recommendations would provide the requisite policy framework for effective inventory
management in SMEs. This would enhance their contributions to economic development
REFERENCES
Adam, E. E. and Ebert, J.R. (1993): Production and Operations Management: Concepts, Models and Behaviour,
5th edition. Prentice Hall, New Delhi. p 568
Adeyemi S.C. and Salami A.O. (2010): Inventory management. A tool of optimising resources in a
manufacturing industry. Journal of Social Science 23(2). 135-142.
Akintoye, I.R. (2004): Investment Decisions: Concepts, Analysis and Management. Glorious Hope Publishers.
Lagos. p 370
Barker, T. (1989): The Essential of Material Management. McGraw Hill Book Co. London. p 261
Brigham, E.F. (1983): Fundamentals of Financial Management: The Dryden Publishers, Tokyo. p 549
Chase, R.B. and Aquilano , N.J. (1985): Production and Operations Management. 4thEdition , IRWIN
Homewood . Illinios. pp 470-483,533
Dominiak, G.E. and LouderBack, J.G. (1997): Managerial Accounting, 8th Edition.: South Western College
Publishing, Cincinate Ohio. p 258
Edwardson, W. (1989) : Improvement of the Small Scale Food Industry Developing Countries. UNIDO Industry
Development, No. 27 p13
Forgionne, G.A. (1986): Quantitative Decision Making. Woodsworth Publishing Company. Balmont Califonia.
p 660.
Garrison, R.H. and Noreen, E.W .(2000): Managerial Accounting. Ninth Edition. Irwin McGraw Hill, New
York p 407
Jegede, J.F.S. (1992): Stock Control for Cost Control. The Nigerian Accountant Journal October/December
1992 Vol. 25 No. 4 p 34.
Kaynak, H. and Pagani, R.A. (2003): Just In Time Purchasing and Technical Efficiency in
Manufacturing Sector International Journal of Production Research Vol.41 No 1 pp 1-14

the US

Kotler P. (2002) Marketing Management 2nd Edition, The Millenium Edition. New Delhi,Prentice Hall,
India
Loveman,G and Sengenberger, W (1992): Economic and Social Reorganisation In the Small and Medium
Enterprises Sector in Senegenberger W. Loveman G. and Piore M.J. (eds.) The Re- emergence of Small
Enterprises: Industrial Restructuring in Industrialised Countries International Institute for Labour
Studies, Geneva. p 43
Ogunleye, G.A. (2000): Small and Medium Scale Enterprises as Foundation for Rapid EconomicDevelopment in
Nigeria. NDIC Quarterly Journal Vol. 10 December, 2000 N0 4. p 23
Orlicky, J. (1975): Material Requirement Planning: Mc Graw-Hill , New York . p 158.
Pandey, I. M. (2005): Financial Management. Enlarged Edition,: Vikas Publishing House Ltd. New Delhi p.
904
Plane, D.R. (1994): Management Science – A Spread Sheet Approach Boys and Fraser Publishing Company.
Danvers Massachetts p.245
Schreibfeder, J. (2001): Varying the Carrying Cost for Individual Product. Effective Inventory Management Inc.
South Denton. http//www. effectiveinventoryCom/articles.htm Down loaded on 7th October, 2007

154
European Journal of Business and Management
ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online)
Vol.5, No.28, 2013

www.iiste.org

Tables
Table 1: Usage of Inventory Models and Forecasting Methods
No
Yes

of

Respondents
%

No

%

Economics Order Quantity Model

52

24.52

160

75.47

Economics Batch Quantity Model

26

12.26

183

87.73

Ratio to Measure Stock Efficiency

38

17.92

174

82.08

Forecasting of Annual Demand of Material Input

46

21.70

166

78.30

Generation of Data for Stock Cost

34

16.04

178

83.96

Estimation of Annual Usage with Certainty

14

6.60

198

93.40

Executive Judgment Use to Determine Production Batch
•

188

88.68

24

Multiple response options was responsible for total sum greater than 100%

Table: 2 Reasons for Non Usage of Inventory Models

Inadequate
Time Wasting
Knowledge
Response(%)
Response(%)

Inadequate
Data
Response(%)

Not Relevant
to Operations
Response(%)

Others
Response (%)

Economic
Order
Quantity
134(83.75%)

8(5%)

16(20%)

2(1.25%)

-

Economic
Batch
Quantity 130(61.32%)

14(7.53%)

8(3.77%)

24(12.90%)

10(9.43%

155

11.32
European Journal of Business and Management
ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online)
Vol.5, No.28, 2013

www.iiste.org

Table 3: Inventory Processing, Ordering and Valuation methods
No of Respondents
Food and
Beverages

Textiles and
Wearing
Apparel

Wood and
Wood Products

Fabrication and
Metal Products

Total

Inventory ordering
method
Cyclical order system

4(1.89%)

-

10(4.72%)

Fixed quantity system

36(16.98%)

22(10.38%)

14(6.60%)

Material requirement
planning system

18(8.49%)

16(7.55%)

22(10.38%)

16(7.55%)

72(33.96%)

Just in time system

-

8(3.77%)

4(1.89%)

14(6.60%)

26(12.26%)

No response

2(0.94%)

-

-

-

14(6.60%)

18(8.49%)

90(42.5%)

8(3.77%)

10(4.72%)

26((12.26%)

72(33.96%)

6(2.83%)

24(11.32%)

24(11.32%)

104((49.66%)

Valuation Methods
Annual stock taking

18(8.49%)

6(2.83%)

22((10.37%)

Perpetual stock taking

8(3.97%)

10(4.71%)

Stock taking when
necessary

30(14.15%)

28(13.21%)

22(10.37%)

Others

4(1.89%)

2(0.94%)

6(2.83%)

-

-

12(17.67%)

Processing methods:
Manual

42(19.81%)

38 (17.92%)

34(16.04%)

22(20.75%)

158(74.53%)

Semi computerized

12(17.67%)

4(1.89%)

16(7.55%)

8(3.97%)

40(18.86%)

6(2.83%)

4(1.89%)

Computerized

-

156

4(1.89%)

14(6.60%)
European Journal of Business and Management
ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online)
Vol.5, No.28, 2013

www.iiste.org

Table 4: Impact of Shortage of Raw Material on Performance (Wood and Wood Work Sector)
5

4

High
Positive
Impact
Impact of
Shortage of raw
Materials on
Workers’
Efficiency
Impact of
Shortage of raw
Machinery
Utilization
2.46b

3

Positive No Impact
Impact

2(10)

2(8)

1(5)

2(8)

Impact of
Shortage of raw on
Profitability
1(5)

2
Negative
Impact

15(45)

1
High
Total
Negative Response
Impact

Weighted Mean
Score
Rating

6(6)

30

79

13(39)

8(16)

6(6)

30

79

5(15)

1(4)

5(10)

2(4)

2(2)

30

79

2.63a

2.27a

* Mean followed by the same letter were not significantly different at 5% level of confidence

Table 5: Impact of Shortage of Raw Material on Performance (Textiles and Wearing Apparel Sector)
5

4

3

2

1

High
Positve
Impact
Impact of
Shortage of raw
Materials on
Workers’
Efficiency
2.52a
Impact of
Shortage of raw
Machinery
Utilisation
2.74a
Impact of
Shortage of raw
on Profitability

Positive
Impact

No Impact

Negative
Impact

2(10)

1(4)

11(33)

2(4)

7(7)

1(5)

3(12)

13(39)

1(2)

5(5)

1(5)

1(4)

5(15)

15(30)

High
Negative
Impact

3(3)

Total
Response

Weighted
Score

23

23

23

* Mean followed by the same letter were not significantly different at 5% level of confidence

157

Mean
Rating

58

63

79

2.48a
European Journal of Business and Management
ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online)
Vol.5, No.28, 2013

www.iiste.org

Table 6: Impact of Shortage of Raw Material on Performance (Food and Beverages Sector)
5

4

High
Positive
Impact
Impact of
Shortage of raw
Materials on
Workers’
Efficiency

-

Impact of
Shortage of
Raw material on
Machinery
Utilisation

3(15)

Impact of
Shortage of raw
Material on
Profitability

1(5)

3

Positive No Impact
Impact

1(4)

5(20)

2(8)

2

1

Negative
Impact

10(30)

11(22)

8(24)

5(10)

5(15)

11(22)

High
Total
Negative Response
Impact

3(3)

4(4)

6(6)

Weighted
Score

25

Mean
Rating

59

2.36a

25

73

3.92a

25

56

2.24a

* Mean followed by the same letter were not significantly different at 5% level of confidence

Table 7: Impact of Shortage of Raw Material on Performance (Fabrication and Metal Products Sector)
5

4

High

Positive

Positive

3

2
Negative

Impact

High

Total

Impact

No Impact

1

Negative

Response

Weighted

Mean
Score

Rating
Impact
Impact of
Shortage of raw
Materials on
Workers’
Efficiency
Impact of
hortage of raw
Machinery
Utilisation
Impact of
Shortage of raw
on
Profitability
•

3(15)

Impact

7(28)

9(27)

2(4)

7(7)

28

81

2(10)

5(20)

11(33)

5(10)

5(5)

28

78

3.92a

-

8(33)

10(30)

3(6)

7(7)

28

75

2.24a

Mean followed by the same letter were not significantly different at 5% level of confidence

158

2.89a
This academic article was published by The International Institute for Science,
Technology and Education (IISTE). The IISTE is a pioneer in the Open Access
Publishing service based in the U.S. and Europe. The aim of the institute is
Accelerating Global Knowledge Sharing.
More information about the publisher can be found in the IISTE’s homepage:
http://www.iiste.org
CALL FOR JOURNAL PAPERS
The IISTE is currently hosting more than 30 peer-reviewed academic journals and
collaborating with academic institutions around the world. There’s no deadline for
submission. Prospective authors of IISTE journals can find the submission
instruction on the following page: http://www.iiste.org/journals/
The IISTE
editorial team promises to the review and publish all the qualified submissions in a
fast manner. All the journals articles are available online to the readers all over the
world without financial, legal, or technical barriers other than those inseparable from
gaining access to the internet itself. Printed version of the journals is also available
upon request of readers and authors.
MORE RESOURCES
Book publication information: http://www.iiste.org/book/
Recent conferences: http://www.iiste.org/conference/
IISTE Knowledge Sharing Partners
EBSCO, Index Copernicus, Ulrich's Periodicals Directory, JournalTOCS, PKP Open
Archives Harvester, Bielefeld Academic Search Engine, Elektronische
Zeitschriftenbibliothek EZB, Open J-Gate, OCLC WorldCat, Universe Digtial
Library , NewJour, Google Scholar

Más contenido relacionado

La actualidad más candente

Corporate profitability through effective management of materials, the case
Corporate profitability through effective management of materials, the caseCorporate profitability through effective management of materials, the case
Corporate profitability through effective management of materials, the caseAlexander Decker
 
Product costing in lean manufacturing organizations
Product costing in lean manufacturing organizationsProduct costing in lean manufacturing organizations
Product costing in lean manufacturing organizationsAlexander Decker
 
Machine & materials managment
Machine & materials managmentMachine & materials managment
Machine & materials managmentMarites Teope
 
Operations management
Operations managementOperations management
Operations managementPrithvi Ghag
 
Significance of material planning, production control in actualization of org...
Significance of material planning, production control in actualization of org...Significance of material planning, production control in actualization of org...
Significance of material planning, production control in actualization of org...Alexander Decker
 
costing and management accounting manual-scripts
costing and management accounting manual-scriptscosting and management accounting manual-scripts
costing and management accounting manual-scriptsFrancis Phiri
 
MEC 6121 #1 Introduction to Production Management
MEC 6121   #1 Introduction to Production ManagementMEC 6121   #1 Introduction to Production Management
MEC 6121 #1 Introduction to Production ManagementTerence Malama
 
The impact of the digital era on the implementation of lean six sigma
The impact of the digital era on the implementation of lean six sigmaThe impact of the digital era on the implementation of lean six sigma
The impact of the digital era on the implementation of lean six sigmaUduakLuke
 
Operations and productivity
Operations and productivityOperations and productivity
Operations and productivityRajThakuri
 
Using KPIs to Guide Manufacturers’ COVID-19 Accelerated Recovery
Using KPIs to Guide Manufacturers’ COVID-19 Accelerated RecoveryUsing KPIs to Guide Manufacturers’ COVID-19 Accelerated Recovery
Using KPIs to Guide Manufacturers’ COVID-19 Accelerated RecoveryCBIZ, Inc.
 
The Nature of Production
The Nature of ProductionThe Nature of Production
The Nature of ProductionKim Delisser
 
EFFECTUAL IMPLICATION OF TOTAL QUALITY MANAGEMENT WITHIN AMAZON.COM INC.
EFFECTUAL IMPLICATION OF TOTAL QUALITY MANAGEMENT WITHIN AMAZON.COM INC.EFFECTUAL IMPLICATION OF TOTAL QUALITY MANAGEMENT WITHIN AMAZON.COM INC.
EFFECTUAL IMPLICATION OF TOTAL QUALITY MANAGEMENT WITHIN AMAZON.COM INC.Sadia Rahat
 
Production Planning Industrial Engineering Management E-Book
Production Planning Industrial Engineering Management E-BookProduction Planning Industrial Engineering Management E-Book
Production Planning Industrial Engineering Management E-BookLuis Cabrera
 
Session 1_OM
Session 1_OMSession 1_OM
Session 1_OMthangv
 

La actualidad más candente (18)

Operations Management
Operations ManagementOperations Management
Operations Management
 
Corporate profitability through effective management of materials, the case
Corporate profitability through effective management of materials, the caseCorporate profitability through effective management of materials, the case
Corporate profitability through effective management of materials, the case
 
Product costing in lean manufacturing organizations
Product costing in lean manufacturing organizationsProduct costing in lean manufacturing organizations
Product costing in lean manufacturing organizations
 
Ijm 06 08_003
Ijm 06 08_003Ijm 06 08_003
Ijm 06 08_003
 
Machine & materials managment
Machine & materials managmentMachine & materials managment
Machine & materials managment
 
Operations management
Operations managementOperations management
Operations management
 
Significance of material planning, production control in actualization of org...
Significance of material planning, production control in actualization of org...Significance of material planning, production control in actualization of org...
Significance of material planning, production control in actualization of org...
 
Production management
Production managementProduction management
Production management
 
costing and management accounting manual-scripts
costing and management accounting manual-scriptscosting and management accounting manual-scripts
costing and management accounting manual-scripts
 
MEC 6121 #1 Introduction to Production Management
MEC 6121   #1 Introduction to Production ManagementMEC 6121   #1 Introduction to Production Management
MEC 6121 #1 Introduction to Production Management
 
The impact of the digital era on the implementation of lean six sigma
The impact of the digital era on the implementation of lean six sigmaThe impact of the digital era on the implementation of lean six sigma
The impact of the digital era on the implementation of lean six sigma
 
Real time
Real timeReal time
Real time
 
Operations and productivity
Operations and productivityOperations and productivity
Operations and productivity
 
Using KPIs to Guide Manufacturers’ COVID-19 Accelerated Recovery
Using KPIs to Guide Manufacturers’ COVID-19 Accelerated RecoveryUsing KPIs to Guide Manufacturers’ COVID-19 Accelerated Recovery
Using KPIs to Guide Manufacturers’ COVID-19 Accelerated Recovery
 
The Nature of Production
The Nature of ProductionThe Nature of Production
The Nature of Production
 
EFFECTUAL IMPLICATION OF TOTAL QUALITY MANAGEMENT WITHIN AMAZON.COM INC.
EFFECTUAL IMPLICATION OF TOTAL QUALITY MANAGEMENT WITHIN AMAZON.COM INC.EFFECTUAL IMPLICATION OF TOTAL QUALITY MANAGEMENT WITHIN AMAZON.COM INC.
EFFECTUAL IMPLICATION OF TOTAL QUALITY MANAGEMENT WITHIN AMAZON.COM INC.
 
Production Planning Industrial Engineering Management E-Book
Production Planning Industrial Engineering Management E-BookProduction Planning Industrial Engineering Management E-Book
Production Planning Industrial Engineering Management E-Book
 
Session 1_OM
Session 1_OMSession 1_OM
Session 1_OM
 

Similar a An assessment of inventory management in small and

Integrated inventory management key to organizational profitability and effic...
Integrated inventory management key to organizational profitability and effic...Integrated inventory management key to organizational profitability and effic...
Integrated inventory management key to organizational profitability and effic...Alexander Decker
 
Effect_of_Inventory_Management_System_on.pdf
Effect_of_Inventory_Management_System_on.pdfEffect_of_Inventory_Management_System_on.pdf
Effect_of_Inventory_Management_System_on.pdfstephjohn3
 
Just – In Time Delivery Practice and Customer Satisfaction of Brewing Plants...
Just  – In Time Delivery Practice and Customer Satisfaction of Brewing Plants...Just  – In Time Delivery Practice and Customer Satisfaction of Brewing Plants...
Just – In Time Delivery Practice and Customer Satisfaction of Brewing Plants...ijtsrd
 
Inventory Management - Controlling Inventory in a Highly Volatile Demand-Sup...
Inventory Management - Controlling Inventory in a  Highly Volatile Demand-Sup...Inventory Management - Controlling Inventory in a  Highly Volatile Demand-Sup...
Inventory Management - Controlling Inventory in a Highly Volatile Demand-Sup...Sachin Mathews
 
Factors Affecting Inventory Management Efficiency in Kenya Seed Company, Kita...
Factors Affecting Inventory Management Efficiency in Kenya Seed Company, Kita...Factors Affecting Inventory Management Efficiency in Kenya Seed Company, Kita...
Factors Affecting Inventory Management Efficiency in Kenya Seed Company, Kita...paperpublications3
 
Presentation (Inventory).ppt
Presentation (Inventory).pptPresentation (Inventory).ppt
Presentation (Inventory).pptRakibIslam94
 
“Optimization of Inventory regarding Power Tiller”
“Optimization of Inventory regarding Power Tiller”“Optimization of Inventory regarding Power Tiller”
“Optimization of Inventory regarding Power Tiller”IRJET Journal
 
Influence of Inventory Management on Sales Growth of Food and Beverage Manufa...
Influence of Inventory Management on Sales Growth of Food and Beverage Manufa...Influence of Inventory Management on Sales Growth of Food and Beverage Manufa...
Influence of Inventory Management on Sales Growth of Food and Beverage Manufa...ijtsrd
 
Inventory Management (Intro, types, spares mgmt) & Role of stores manager
Inventory Management (Intro, types, spares mgmt) & Role of stores managerInventory Management (Intro, types, spares mgmt) & Role of stores manager
Inventory Management (Intro, types, spares mgmt) & Role of stores managerSrishti Bhardwaj
 
International Journal of Business and Management Invention (IJBMI)
International Journal of Business and Management Invention (IJBMI) International Journal of Business and Management Invention (IJBMI)
International Journal of Business and Management Invention (IJBMI) inventionjournals
 
Understanding the Need of Implementation of Lean Techniques in Manufacturing ...
Understanding the Need of Implementation of Lean Techniques in Manufacturing ...Understanding the Need of Implementation of Lean Techniques in Manufacturing ...
Understanding the Need of Implementation of Lean Techniques in Manufacturing ...ijtsrd
 
Significance of material planning, production control in actualization of org...
Significance of material planning, production control in actualization of org...Significance of material planning, production control in actualization of org...
Significance of material planning, production control in actualization of org...Alexander Decker
 
Capacity Management and Survival of Selected Small and Medium Enterprises SME...
Capacity Management and Survival of Selected Small and Medium Enterprises SME...Capacity Management and Survival of Selected Small and Medium Enterprises SME...
Capacity Management and Survival of Selected Small and Medium Enterprises SME...ijtsrd
 
Evaluating entrepreneurs competency on the growth of small scale businesses i...
Evaluating entrepreneurs competency on the growth of small scale businesses i...Evaluating entrepreneurs competency on the growth of small scale businesses i...
Evaluating entrepreneurs competency on the growth of small scale businesses i...Alexander Decker
 
IRJET- A Review on “Productivity Improvement in Small Scale Industries”
IRJET- A Review on “Productivity Improvement in Small Scale Industries”IRJET- A Review on “Productivity Improvement in Small Scale Industries”
IRJET- A Review on “Productivity Improvement in Small Scale Industries”IRJET Journal
 
Capacity Management and Survival of Selected Small and Medium Enterprises SME...
Capacity Management and Survival of Selected Small and Medium Enterprises SME...Capacity Management and Survival of Selected Small and Medium Enterprises SME...
Capacity Management and Survival of Selected Small and Medium Enterprises SME...YogeshIJTSRD
 
Productivity Improvement of a Laboratory Equipment Manufacturing Company thro...
Productivity Improvement of a Laboratory Equipment Manufacturing Company thro...Productivity Improvement of a Laboratory Equipment Manufacturing Company thro...
Productivity Improvement of a Laboratory Equipment Manufacturing Company thro...akshay hebbar
 

Similar a An assessment of inventory management in small and (20)

Ketan
KetanKetan
Ketan
 
Integrated inventory management key to organizational profitability and effic...
Integrated inventory management key to organizational profitability and effic...Integrated inventory management key to organizational profitability and effic...
Integrated inventory management key to organizational profitability and effic...
 
Effect_of_Inventory_Management_System_on.pdf
Effect_of_Inventory_Management_System_on.pdfEffect_of_Inventory_Management_System_on.pdf
Effect_of_Inventory_Management_System_on.pdf
 
Just – In Time Delivery Practice and Customer Satisfaction of Brewing Plants...
Just  – In Time Delivery Practice and Customer Satisfaction of Brewing Plants...Just  – In Time Delivery Practice and Customer Satisfaction of Brewing Plants...
Just – In Time Delivery Practice and Customer Satisfaction of Brewing Plants...
 
Inventory Management - Controlling Inventory in a Highly Volatile Demand-Sup...
Inventory Management - Controlling Inventory in a  Highly Volatile Demand-Sup...Inventory Management - Controlling Inventory in a  Highly Volatile Demand-Sup...
Inventory Management - Controlling Inventory in a Highly Volatile Demand-Sup...
 
Factors Affecting Inventory Management Efficiency in Kenya Seed Company, Kita...
Factors Affecting Inventory Management Efficiency in Kenya Seed Company, Kita...Factors Affecting Inventory Management Efficiency in Kenya Seed Company, Kita...
Factors Affecting Inventory Management Efficiency in Kenya Seed Company, Kita...
 
Presentation (Inventory).ppt
Presentation (Inventory).pptPresentation (Inventory).ppt
Presentation (Inventory).ppt
 
“Optimization of Inventory regarding Power Tiller”
“Optimization of Inventory regarding Power Tiller”“Optimization of Inventory regarding Power Tiller”
“Optimization of Inventory regarding Power Tiller”
 
10120130405010
1012013040501010120130405010
10120130405010
 
Influence of Inventory Management on Sales Growth of Food and Beverage Manufa...
Influence of Inventory Management on Sales Growth of Food and Beverage Manufa...Influence of Inventory Management on Sales Growth of Food and Beverage Manufa...
Influence of Inventory Management on Sales Growth of Food and Beverage Manufa...
 
Inventory Management (Intro, types, spares mgmt) & Role of stores manager
Inventory Management (Intro, types, spares mgmt) & Role of stores managerInventory Management (Intro, types, spares mgmt) & Role of stores manager
Inventory Management (Intro, types, spares mgmt) & Role of stores manager
 
International Journal of Business and Management Invention (IJBMI)
International Journal of Business and Management Invention (IJBMI) International Journal of Business and Management Invention (IJBMI)
International Journal of Business and Management Invention (IJBMI)
 
Understanding the Need of Implementation of Lean Techniques in Manufacturing ...
Understanding the Need of Implementation of Lean Techniques in Manufacturing ...Understanding the Need of Implementation of Lean Techniques in Manufacturing ...
Understanding the Need of Implementation of Lean Techniques in Manufacturing ...
 
Significance of material planning, production control in actualization of org...
Significance of material planning, production control in actualization of org...Significance of material planning, production control in actualization of org...
Significance of material planning, production control in actualization of org...
 
Capacity Management and Survival of Selected Small and Medium Enterprises SME...
Capacity Management and Survival of Selected Small and Medium Enterprises SME...Capacity Management and Survival of Selected Small and Medium Enterprises SME...
Capacity Management and Survival of Selected Small and Medium Enterprises SME...
 
Evaluating entrepreneurs competency on the growth of small scale businesses i...
Evaluating entrepreneurs competency on the growth of small scale businesses i...Evaluating entrepreneurs competency on the growth of small scale businesses i...
Evaluating entrepreneurs competency on the growth of small scale businesses i...
 
IRJET- A Review on “Productivity Improvement in Small Scale Industries”
IRJET- A Review on “Productivity Improvement in Small Scale Industries”IRJET- A Review on “Productivity Improvement in Small Scale Industries”
IRJET- A Review on “Productivity Improvement in Small Scale Industries”
 
Capacity Management and Survival of Selected Small and Medium Enterprises SME...
Capacity Management and Survival of Selected Small and Medium Enterprises SME...Capacity Management and Survival of Selected Small and Medium Enterprises SME...
Capacity Management and Survival of Selected Small and Medium Enterprises SME...
 
Productivity Improvement of a Laboratory Equipment Manufacturing Company thro...
Productivity Improvement of a Laboratory Equipment Manufacturing Company thro...Productivity Improvement of a Laboratory Equipment Manufacturing Company thro...
Productivity Improvement of a Laboratory Equipment Manufacturing Company thro...
 
just in time
just in timejust in time
just in time
 

Más de Alexander Decker

Abnormalities of hormones and inflammatory cytokines in women affected with p...
Abnormalities of hormones and inflammatory cytokines in women affected with p...Abnormalities of hormones and inflammatory cytokines in women affected with p...
Abnormalities of hormones and inflammatory cytokines in women affected with p...Alexander Decker
 
A validation of the adverse childhood experiences scale in
A validation of the adverse childhood experiences scale inA validation of the adverse childhood experiences scale in
A validation of the adverse childhood experiences scale inAlexander Decker
 
A usability evaluation framework for b2 c e commerce websites
A usability evaluation framework for b2 c e commerce websitesA usability evaluation framework for b2 c e commerce websites
A usability evaluation framework for b2 c e commerce websitesAlexander Decker
 
A universal model for managing the marketing executives in nigerian banks
A universal model for managing the marketing executives in nigerian banksA universal model for managing the marketing executives in nigerian banks
A universal model for managing the marketing executives in nigerian banksAlexander Decker
 
A unique common fixed point theorems in generalized d
A unique common fixed point theorems in generalized dA unique common fixed point theorems in generalized d
A unique common fixed point theorems in generalized dAlexander Decker
 
A trends of salmonella and antibiotic resistance
A trends of salmonella and antibiotic resistanceA trends of salmonella and antibiotic resistance
A trends of salmonella and antibiotic resistanceAlexander Decker
 
A transformational generative approach towards understanding al-istifham
A transformational  generative approach towards understanding al-istifhamA transformational  generative approach towards understanding al-istifham
A transformational generative approach towards understanding al-istifhamAlexander Decker
 
A time series analysis of the determinants of savings in namibia
A time series analysis of the determinants of savings in namibiaA time series analysis of the determinants of savings in namibia
A time series analysis of the determinants of savings in namibiaAlexander Decker
 
A therapy for physical and mental fitness of school children
A therapy for physical and mental fitness of school childrenA therapy for physical and mental fitness of school children
A therapy for physical and mental fitness of school childrenAlexander Decker
 
A theory of efficiency for managing the marketing executives in nigerian banks
A theory of efficiency for managing the marketing executives in nigerian banksA theory of efficiency for managing the marketing executives in nigerian banks
A theory of efficiency for managing the marketing executives in nigerian banksAlexander Decker
 
A systematic evaluation of link budget for
A systematic evaluation of link budget forA systematic evaluation of link budget for
A systematic evaluation of link budget forAlexander Decker
 
A synthetic review of contraceptive supplies in punjab
A synthetic review of contraceptive supplies in punjabA synthetic review of contraceptive supplies in punjab
A synthetic review of contraceptive supplies in punjabAlexander Decker
 
A synthesis of taylor’s and fayol’s management approaches for managing market...
A synthesis of taylor’s and fayol’s management approaches for managing market...A synthesis of taylor’s and fayol’s management approaches for managing market...
A synthesis of taylor’s and fayol’s management approaches for managing market...Alexander Decker
 
A survey paper on sequence pattern mining with incremental
A survey paper on sequence pattern mining with incrementalA survey paper on sequence pattern mining with incremental
A survey paper on sequence pattern mining with incrementalAlexander Decker
 
A survey on live virtual machine migrations and its techniques
A survey on live virtual machine migrations and its techniquesA survey on live virtual machine migrations and its techniques
A survey on live virtual machine migrations and its techniquesAlexander Decker
 
A survey on data mining and analysis in hadoop and mongo db
A survey on data mining and analysis in hadoop and mongo dbA survey on data mining and analysis in hadoop and mongo db
A survey on data mining and analysis in hadoop and mongo dbAlexander Decker
 
A survey on challenges to the media cloud
A survey on challenges to the media cloudA survey on challenges to the media cloud
A survey on challenges to the media cloudAlexander Decker
 
A survey of provenance leveraged
A survey of provenance leveragedA survey of provenance leveraged
A survey of provenance leveragedAlexander Decker
 
A survey of private equity investments in kenya
A survey of private equity investments in kenyaA survey of private equity investments in kenya
A survey of private equity investments in kenyaAlexander Decker
 
A study to measures the financial health of
A study to measures the financial health ofA study to measures the financial health of
A study to measures the financial health ofAlexander Decker
 

Más de Alexander Decker (20)

Abnormalities of hormones and inflammatory cytokines in women affected with p...
Abnormalities of hormones and inflammatory cytokines in women affected with p...Abnormalities of hormones and inflammatory cytokines in women affected with p...
Abnormalities of hormones and inflammatory cytokines in women affected with p...
 
A validation of the adverse childhood experiences scale in
A validation of the adverse childhood experiences scale inA validation of the adverse childhood experiences scale in
A validation of the adverse childhood experiences scale in
 
A usability evaluation framework for b2 c e commerce websites
A usability evaluation framework for b2 c e commerce websitesA usability evaluation framework for b2 c e commerce websites
A usability evaluation framework for b2 c e commerce websites
 
A universal model for managing the marketing executives in nigerian banks
A universal model for managing the marketing executives in nigerian banksA universal model for managing the marketing executives in nigerian banks
A universal model for managing the marketing executives in nigerian banks
 
A unique common fixed point theorems in generalized d
A unique common fixed point theorems in generalized dA unique common fixed point theorems in generalized d
A unique common fixed point theorems in generalized d
 
A trends of salmonella and antibiotic resistance
A trends of salmonella and antibiotic resistanceA trends of salmonella and antibiotic resistance
A trends of salmonella and antibiotic resistance
 
A transformational generative approach towards understanding al-istifham
A transformational  generative approach towards understanding al-istifhamA transformational  generative approach towards understanding al-istifham
A transformational generative approach towards understanding al-istifham
 
A time series analysis of the determinants of savings in namibia
A time series analysis of the determinants of savings in namibiaA time series analysis of the determinants of savings in namibia
A time series analysis of the determinants of savings in namibia
 
A therapy for physical and mental fitness of school children
A therapy for physical and mental fitness of school childrenA therapy for physical and mental fitness of school children
A therapy for physical and mental fitness of school children
 
A theory of efficiency for managing the marketing executives in nigerian banks
A theory of efficiency for managing the marketing executives in nigerian banksA theory of efficiency for managing the marketing executives in nigerian banks
A theory of efficiency for managing the marketing executives in nigerian banks
 
A systematic evaluation of link budget for
A systematic evaluation of link budget forA systematic evaluation of link budget for
A systematic evaluation of link budget for
 
A synthetic review of contraceptive supplies in punjab
A synthetic review of contraceptive supplies in punjabA synthetic review of contraceptive supplies in punjab
A synthetic review of contraceptive supplies in punjab
 
A synthesis of taylor’s and fayol’s management approaches for managing market...
A synthesis of taylor’s and fayol’s management approaches for managing market...A synthesis of taylor’s and fayol’s management approaches for managing market...
A synthesis of taylor’s and fayol’s management approaches for managing market...
 
A survey paper on sequence pattern mining with incremental
A survey paper on sequence pattern mining with incrementalA survey paper on sequence pattern mining with incremental
A survey paper on sequence pattern mining with incremental
 
A survey on live virtual machine migrations and its techniques
A survey on live virtual machine migrations and its techniquesA survey on live virtual machine migrations and its techniques
A survey on live virtual machine migrations and its techniques
 
A survey on data mining and analysis in hadoop and mongo db
A survey on data mining and analysis in hadoop and mongo dbA survey on data mining and analysis in hadoop and mongo db
A survey on data mining and analysis in hadoop and mongo db
 
A survey on challenges to the media cloud
A survey on challenges to the media cloudA survey on challenges to the media cloud
A survey on challenges to the media cloud
 
A survey of provenance leveraged
A survey of provenance leveragedA survey of provenance leveraged
A survey of provenance leveraged
 
A survey of private equity investments in kenya
A survey of private equity investments in kenyaA survey of private equity investments in kenya
A survey of private equity investments in kenya
 
A study to measures the financial health of
A study to measures the financial health ofA study to measures the financial health of
A study to measures the financial health of
 

Último

Interoperability and ecosystems: Assembling the industrial metaverse
Interoperability and ecosystems:  Assembling the industrial metaverseInteroperability and ecosystems:  Assembling the industrial metaverse
Interoperability and ecosystems: Assembling the industrial metaverseSiemens
 
Driving Business Impact for PMs with Jon Harmer
Driving Business Impact for PMs with Jon HarmerDriving Business Impact for PMs with Jon Harmer
Driving Business Impact for PMs with Jon HarmerAggregage
 
Psychic Reading | Spiritual Guidance – Astro Ganesh Ji
Psychic Reading | Spiritual Guidance – Astro Ganesh JiPsychic Reading | Spiritual Guidance – Astro Ganesh Ji
Psychic Reading | Spiritual Guidance – Astro Ganesh Jiastral oracle
 
Technical Leaders - Working with the Management Team
Technical Leaders - Working with the Management TeamTechnical Leaders - Working with the Management Team
Technical Leaders - Working with the Management TeamArik Fletcher
 
Introducing the AI ShillText Generator A New Era for Cryptocurrency Marketing...
Introducing the AI ShillText Generator A New Era for Cryptocurrency Marketing...Introducing the AI ShillText Generator A New Era for Cryptocurrency Marketing...
Introducing the AI ShillText Generator A New Era for Cryptocurrency Marketing...PRnews2
 
WSMM Technology February.March Newsletter_vF.pdf
WSMM Technology February.March Newsletter_vF.pdfWSMM Technology February.March Newsletter_vF.pdf
WSMM Technology February.March Newsletter_vF.pdfJamesConcepcion7
 
Fundamentals Welcome and Inclusive DEIB
Fundamentals Welcome and  Inclusive DEIBFundamentals Welcome and  Inclusive DEIB
Fundamentals Welcome and Inclusive DEIBGregory DeShields
 
Data Analytics Strategy Toolkit and Templates
Data Analytics Strategy Toolkit and TemplatesData Analytics Strategy Toolkit and Templates
Data Analytics Strategy Toolkit and TemplatesAurelien Domont, MBA
 
Healthcare Feb. & Mar. Healthcare Newsletter
Healthcare Feb. & Mar. Healthcare NewsletterHealthcare Feb. & Mar. Healthcare Newsletter
Healthcare Feb. & Mar. Healthcare NewsletterJamesConcepcion7
 
GUIDELINES ON USEFUL FORMS IN FREIGHT FORWARDING (F) Danny Diep Toh MBA.pdf
GUIDELINES ON USEFUL FORMS IN FREIGHT FORWARDING (F) Danny Diep Toh MBA.pdfGUIDELINES ON USEFUL FORMS IN FREIGHT FORWARDING (F) Danny Diep Toh MBA.pdf
GUIDELINES ON USEFUL FORMS IN FREIGHT FORWARDING (F) Danny Diep Toh MBA.pdfDanny Diep To
 
Rakhi sets symbolizing the bond of love.pptx
Rakhi sets symbolizing the bond of love.pptxRakhi sets symbolizing the bond of love.pptx
Rakhi sets symbolizing the bond of love.pptxRakhi Bazaar
 
trending-flavors-and-ingredients-in-salty-snacks-us-2024_Redacted-V2.pdf
trending-flavors-and-ingredients-in-salty-snacks-us-2024_Redacted-V2.pdftrending-flavors-and-ingredients-in-salty-snacks-us-2024_Redacted-V2.pdf
trending-flavors-and-ingredients-in-salty-snacks-us-2024_Redacted-V2.pdfMintel Group
 
71368-80-4.pdf Fast delivery good quality
71368-80-4.pdf Fast delivery  good quality71368-80-4.pdf Fast delivery  good quality
71368-80-4.pdf Fast delivery good qualitycathy664059
 
5-Step Framework to Convert Any Business into a Wealth Generation Machine.pdf
5-Step Framework to Convert Any Business into a Wealth Generation Machine.pdf5-Step Framework to Convert Any Business into a Wealth Generation Machine.pdf
5-Step Framework to Convert Any Business into a Wealth Generation Machine.pdfSherl Simon
 
Excvation Safety for safety officers reference
Excvation Safety for safety officers referenceExcvation Safety for safety officers reference
Excvation Safety for safety officers referencessuser2c065e
 
Implementing Exponential Accelerators.pptx
Implementing Exponential Accelerators.pptxImplementing Exponential Accelerators.pptx
Implementing Exponential Accelerators.pptxRich Reba
 
1911 Gold Corporate Presentation Apr 2024.pdf
1911 Gold Corporate Presentation Apr 2024.pdf1911 Gold Corporate Presentation Apr 2024.pdf
1911 Gold Corporate Presentation Apr 2024.pdfShaun Heinrichs
 

Último (20)

Interoperability and ecosystems: Assembling the industrial metaverse
Interoperability and ecosystems:  Assembling the industrial metaverseInteroperability and ecosystems:  Assembling the industrial metaverse
Interoperability and ecosystems: Assembling the industrial metaverse
 
Driving Business Impact for PMs with Jon Harmer
Driving Business Impact for PMs with Jon HarmerDriving Business Impact for PMs with Jon Harmer
Driving Business Impact for PMs with Jon Harmer
 
Psychic Reading | Spiritual Guidance – Astro Ganesh Ji
Psychic Reading | Spiritual Guidance – Astro Ganesh JiPsychic Reading | Spiritual Guidance – Astro Ganesh Ji
Psychic Reading | Spiritual Guidance – Astro Ganesh Ji
 
Technical Leaders - Working with the Management Team
Technical Leaders - Working with the Management TeamTechnical Leaders - Working with the Management Team
Technical Leaders - Working with the Management Team
 
Introducing the AI ShillText Generator A New Era for Cryptocurrency Marketing...
Introducing the AI ShillText Generator A New Era for Cryptocurrency Marketing...Introducing the AI ShillText Generator A New Era for Cryptocurrency Marketing...
Introducing the AI ShillText Generator A New Era for Cryptocurrency Marketing...
 
WSMM Technology February.March Newsletter_vF.pdf
WSMM Technology February.March Newsletter_vF.pdfWSMM Technology February.March Newsletter_vF.pdf
WSMM Technology February.March Newsletter_vF.pdf
 
Fundamentals Welcome and Inclusive DEIB
Fundamentals Welcome and  Inclusive DEIBFundamentals Welcome and  Inclusive DEIB
Fundamentals Welcome and Inclusive DEIB
 
Data Analytics Strategy Toolkit and Templates
Data Analytics Strategy Toolkit and TemplatesData Analytics Strategy Toolkit and Templates
Data Analytics Strategy Toolkit and Templates
 
Toyota and Seven Parts Storage Techniques
Toyota and Seven Parts Storage TechniquesToyota and Seven Parts Storage Techniques
Toyota and Seven Parts Storage Techniques
 
Healthcare Feb. & Mar. Healthcare Newsletter
Healthcare Feb. & Mar. Healthcare NewsletterHealthcare Feb. & Mar. Healthcare Newsletter
Healthcare Feb. & Mar. Healthcare Newsletter
 
The Bizz Quiz-E-Summit-E-Cell-IITPatna.pptx
The Bizz Quiz-E-Summit-E-Cell-IITPatna.pptxThe Bizz Quiz-E-Summit-E-Cell-IITPatna.pptx
The Bizz Quiz-E-Summit-E-Cell-IITPatna.pptx
 
GUIDELINES ON USEFUL FORMS IN FREIGHT FORWARDING (F) Danny Diep Toh MBA.pdf
GUIDELINES ON USEFUL FORMS IN FREIGHT FORWARDING (F) Danny Diep Toh MBA.pdfGUIDELINES ON USEFUL FORMS IN FREIGHT FORWARDING (F) Danny Diep Toh MBA.pdf
GUIDELINES ON USEFUL FORMS IN FREIGHT FORWARDING (F) Danny Diep Toh MBA.pdf
 
Rakhi sets symbolizing the bond of love.pptx
Rakhi sets symbolizing the bond of love.pptxRakhi sets symbolizing the bond of love.pptx
Rakhi sets symbolizing the bond of love.pptx
 
trending-flavors-and-ingredients-in-salty-snacks-us-2024_Redacted-V2.pdf
trending-flavors-and-ingredients-in-salty-snacks-us-2024_Redacted-V2.pdftrending-flavors-and-ingredients-in-salty-snacks-us-2024_Redacted-V2.pdf
trending-flavors-and-ingredients-in-salty-snacks-us-2024_Redacted-V2.pdf
 
71368-80-4.pdf Fast delivery good quality
71368-80-4.pdf Fast delivery  good quality71368-80-4.pdf Fast delivery  good quality
71368-80-4.pdf Fast delivery good quality
 
5-Step Framework to Convert Any Business into a Wealth Generation Machine.pdf
5-Step Framework to Convert Any Business into a Wealth Generation Machine.pdf5-Step Framework to Convert Any Business into a Wealth Generation Machine.pdf
5-Step Framework to Convert Any Business into a Wealth Generation Machine.pdf
 
Excvation Safety for safety officers reference
Excvation Safety for safety officers referenceExcvation Safety for safety officers reference
Excvation Safety for safety officers reference
 
Implementing Exponential Accelerators.pptx
Implementing Exponential Accelerators.pptxImplementing Exponential Accelerators.pptx
Implementing Exponential Accelerators.pptx
 
Authentically Social - presented by Corey Perlman
Authentically Social - presented by Corey PerlmanAuthentically Social - presented by Corey Perlman
Authentically Social - presented by Corey Perlman
 
1911 Gold Corporate Presentation Apr 2024.pdf
1911 Gold Corporate Presentation Apr 2024.pdf1911 Gold Corporate Presentation Apr 2024.pdf
1911 Gold Corporate Presentation Apr 2024.pdf
 

An assessment of inventory management in small and

  • 1. European Journal of Business and Management ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online) Vol.5, No.28, 2013 www.iiste.org An Assessment of Inventory Management in Small and Medium Scale Industrial Enterprises in Nigeria Olowolaju Monisola, Department of Accountancy, Federal Polytechnic, Ado-Ekiti. P. M.B. 5351, Ado-Ekiti, Nigeria. E-mail of the Corresponding author: olowomoni@yahoo.com Abstract Inventory is a vital asset, necessary for effective operation of any business organisation. The absence of good inventory management practices in the Small and Medium Scale Industrial Enterprises (SMEs) necessitates a study to determine the actual reasons for non application of scientific inventory management techniques in the SMEs. Three hundred and twenty SMEs in Food, Textiles, Wood and Metal Products sectors in South Western Nigeria were selected for the study. Two hundred and twelve organizations returned the questionnaire. It is established that non usage of scientific inventory techniques for better inventory decision was due to lack of skilled personnel and inadequate data to use inventory models; and low level of ICT in the SMEs. It is recommended that the SMEs should institute structure to improve the knowledge of their personnel about using quantitative inventory decision models and the SMEs should make the application of Information Communication Technology (ICT) for data management a priority. Keywords: Inventory, Just-In-Time, organisation, Economic- Order- Quantity, Re-order- Quantity, Profitability 1.0 Introduction Inventory constitutes a very significant portion of the current assets of manufacturing organisations. Considering the level of investment required for inventory in manufacturing organisations it is imperative to manage inventory efficiently and effectively in order to avoid idle resources and also ensure production continuity. Inefficient management of inventory can lead to underutilisation of capacity and loss of profit. The under utilisation of capacity can aggravate the unemployment problem in any economy. In many developing economies, small and medium scales enterprises employ substantial number of the work force Therefore, efficient management of inventory in small and medium scale manufacturing firms is imperative for meaningful economic growth of any country. 1.1 Statement of the Problem Efforts of many countries to encourage small and medium scale industrial enterprises have been directed towards provision of fund; however, in most cases the crucial problem of management has not been addressed. There is no doubt that small and medium scale manufacturing organisations contribute significantly to the nation economic growth and that inventory is crucial to the sustenance of their operations. Small and Medium scale manufacturing industries are in most cases faced with the problems of inadequate inventory of raw materials and spare parts. These shortages often lead to breaks in production schedule, machine breakdown and low capacity utilisation and thus constituted a barrier to their effective growth. This paper therefore examined these inventory management problems and their impact on the performance of small and medium scale manufacturing organizations. 1.2 Objectives of the Study Considering the strategic importance of inventory to effective operations of an industrial enterprise and in view of the problems highlighted above, this study was to examine the different inventory management practices in the small and medium scale industrialenterprises and assess their impact on the inventory decisions on the organizations. 150
  • 2. European Journal of Business and Management ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online) Vol.5, No.28, 2013 www.iiste.org 2.0 Materials and Methods Small and Medium Scale Enterprises as a concept defies universal definition both among academics and practitioners. It has been both relative and dynamic, varying from country to country, even over time and among industries. The development of small and medium scale industries is very important to the growth of a nation especially a developing country. Ogunleye (2000) stated that small and medium scale enterprises are particularly relevant in creating employment opportunities, mitigating rural urban drift, producing specialized items in small quantities to meet diverse needs, mobilization of local resources as well as stimulation of technological development and innovation. This view was also expressed by Edwardson (1989). (Loveman and Sengenberger, 1992) acknowledged the superiority of small-scale industrialization strategy in promoting economic growth. As a matter of fact, a positive correlation between the emergence of an active small-scale industrial sector and the commencement of rapid economic growth and development can always be established. A practical illustration is the recent transformation of some South East Asian economies from rudimentary states to high-industrialized ones in the second half of the last century. To achieve the desired contribution of SMEs to the industrial growth of a nation, the management of inventory in these organisations is of utmost importance. Inventories are goods that are kept to meet future demand and to ensure production continuity. It is a very important asset in any business organisation. The management of this vital asset is very important for the efficiency, effectiveness and profitability of the business. Forgionne (1986), Adeyemi and Salami (2010) claimed that the astute manager who understands the virtues of each of the component of inventory could use them selectively to implement corporate strategy in the market place. An organisation can strategically build up inventory for market promotion and also to stabilise production schedule. Inventory management is crucial to organisation success since holding too little or too much stock has negative effect on the organisation’s performance. The problem of inventory has continued to receive much attention in most businesses. Inventory levels of raw materials, semi-finished and finished goods need to be effectively managed to control the cost of inventory (Kotler, 2002). t is common to find the balance sheet of an average company having inventory running to 60% of its current assets as capital tied down Pandey (2005). Apart from this, much has to be expended additionally to keep it useful. To keep production going, some level of inventory is desirable. Despite the marvel of computer, automation and scientific management, the production process and marketing activities cannot still avoid the need to have inventories. Jegede (1992) stated that the necessity of keeping stock arises because of the time lapse between purchasing, production and eventual sale to customers. The major concern is how inventory can be controlled to minimise waste and cost. Thus an efficient inventory policy is always an important requirement for the successful management of manufacturing and distributing enterprises. Inventory planning is a major tool of capacity planning and every organization must ensure effective inventory planning to enhance efficient and effective capacity utilization. Orlicky (1975) identified the main purpose of a basic material requirement planning as to control inventory level, assign operating priorities for items, and plan capacity to load the production system as well as to order the right part, order the right quantity and order at the right time. In their contribution to importance of inventory Chase and Aquiliano (1985) mentioned that the objectives of inventory management under the material requirement planning system are to improve customers’ service to minimize inventory investment, and to maximize production operating efficiency. Garrison and Noreen (2000) opined that the selection of the right level of inventories involves balancing three groups of costs. These cost are: inventory ordering cost, inventory carrying costs, the cost of not carrying sufficient inventory and opportunity cost. Plane (1994) observed that if inventory levels are low, the cost associated with keeping inventory on hand is small, but orders are place more frequently to replenish items, to avoid running out of stock always.. If inventory levels are very high, maintaining these inventories is expensive but there may be benefits from obtaining larger lot sizes from suppliers. Schreibfeder (2001) stressed that cost of carrying is a critical factor in deciding what products to stock and when to re-order them as well as the best quantity to order. However, companies and organization often use an imprecise ‘rule of thumb’ to estimate their cost of carrying inventory and the resultant effect is bad inventory management. Just in time inventory (JIT) is the modern concept in inventory management aimed at reducing inventory costs. With just in time inventory, the exact amounts of good items arrive at the moment they are needed. Adam and 151
  • 3. European Journal of Business and Management ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online) Vol.5, No.28, 2013 www.iiste.org Ebert (1993) defines Just in Time as a manufacturing system whose goal is to optimize processes by continuously pursuing waste reduction. Chase and Aquilano (1985) stated that Just In Time (JIT) requires the production department to project precisely the necessary units in the necessary quantities at the necessary time with the objectives of achieving plus or minus zero performance to schedule; it means that production of one extra piece is just as bad as being one piece short. Anything over the minimum amount necessary is viewed as waste. The idea of JIT is to drive all queues toward zero in order to minimize inventory investment, shorten production lead time, react faster to demand changes and uncover any quality problem. Barker (1989) opined that the JIT is a dynamic approach introduced in recent years that demand total commitment from management. Kaynak and Pagani (2003) stated that production and operations research has shown that JIT Purchasing can potentially have benefits to the firms in the form of increasing product quality, improving supplier/buyer relationships, and increasing sales. Akintoye (2004) stressed that the closeness of a company to the ideal JIT situation depends on the type of production process and the nature of suppliers industries. Inventory decisions are of interest to many functional and line managers in every organisation since these decisions may have direct impact on their departmental performance. Forgionne (1986) stressed that inventory policy involves resolving organisational conflicts since all departments connected with inventory in the organisation have different views of what quantity of inventory to keep. Sound management should consider all view points and develop a policy that minimise total related inventory cost. Dominiak and Louderback (1997) in their contribution to the issue of conflict of functional department in respect of inventory levels to be maintained noted that sales managers, finance manager and production managers have different views on the desirable inventory level. This conflict of inventory objective is always resolved with great difficulty in a manufacturing environment. Brigham (1983) opined that proper inventory management require close coordination among the sales, purchasing, production and finance departments since improper co-ordination among the departments can lead to disaster and sub optimisation. The study was carried out in Southwestern states of Nigeria which include Lagos, Oyo, Ogun, Osun, Ondo and Ekiti states. The Southwestern states were chosen because of the existence of a good concentration of Small and Medium Scale Industries within the region The sample size consist of 320 organisations selected within these states. In view of the relative sizes of the states, the purposive sampling method was adopted for the study in order to include dominant industries. The study covered companies engaged in Food and Beverages, Textiles and Wearing Apparels, Wood and Wood Products and Fabricated Metal Products. The questionnaire and oral interview techniques were adopted for this study. The questionnaire method was used to gather primary data, which was supplemented by oral interview with relevant officials of some of the organizations included in the sample. Out of the 320 organizations 212 returned the completed questionnaires .The data collected were subjected to statistical analysis. Simple percentage (%) and 5-point Likert rating. The ratings were tested using Duncan multiple range test. 3.0 Results and Discussion 3.1 Results Table 1 shows the usage of inventory models and forecasting methods. About 25% responded positively to the use of Economic Order Quantity (EOQ) Model. The interview of some respondents revealed that the Economic Order Quantity Model was not used simply because of inadequate data to use the model. This was also confirmed in the response as 178 (83.96%) stated that their organizations could not generate sufficient data for stock cost which is necessary to use the model. Table 1 also reveals that application of other forecasting models was not common in the SMEs while executive judgment was the major approach (88.68%) used for determining production inventory levels. Table 2 shows that 134(83.75)% of the respondents indicated inadequate knowledge for not using the EOQ model while (1.25%) indicated that non usage was due to its non relevance to their operations. The result suggested that majority of the SMEs staff have not been exposed to the use of inventory models for inventory management. The result obtained on the usage of Economic Batch Quantity was not different from that of EOQ because only 26(12.26%) responded positively to the use of Economic Batch Quantity Model while the remaining 186 (87.73%) responded negatively. Majority of the organizations 130 (61.32%) adduced the reason for non usage to inadequate knowledge, while 14(7.53%), 8(3.77%) and 24 (12.90%) gave time wasting, inadequate data and non relevance to operations respectively as reasons for non usage of EBQ models. 152
  • 4. European Journal of Business and Management ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online) Vol.5, No.28, 2013 www.iiste.org The results in Table 3 shows that (49.66%) of the respondents did not use any regular valuation method, they only value their stock as and when necessary. This consist of 14.15%, 13.21%, 10.37% and 11.32% from Food and Beverages, Textiles and Wearing Apparel, Wood and Wood Products and Fabrication and Metal Products sectors respectively Annual valuation method was used by 72(33.98%) while only 24 (11.32%) used the perpetual valuation method. The remaining 12(7.67%) of the respondents did not specify any method. Perpetual inventory valuation is very ideal for early detection of fraudulent practices in the stores and organizations need to be encouraged to use this method of stock valuation. Table 5 further shows that 158 (74.53%) of the organizations used manual processing method while 40 (18.86%) used semi computerized and only 14 (6.60%) fully computerized their inventory processing. The table also reveals that out of the 74.53% that used manual processing method; 19.81%, 17.96%. 16.04% and 20.75% were from Food and Beverages, Textiles and Wearing Apparels, Wood and Wood Products and Fabrication and Metal Products sectors respectively. This shows that the use of manual processing by SMEs is prevalent in all sectors and also indicates a low level of application of modern information management technology to inventory by the SMEs despite the numerous advantages. The application of ICT to operations by SMEs could be very effective in improving their capability inspite of the low level of staffing. The fixed quantity order system was embraced by most of the SMEs (42.50%). About 34% applied Material Requirement Planning system, 12.26% used Just In Time (JIT) system, 6.60% used Cyclical Order system while the 4.72% who did not respond to the question implicitly did not have any specific system. All the various ordering methods were used in all the sectors except JIT for which there was no response in the Food and Beverages sector. Some of the organizations that used JIT system were interviewed to really know if they understand the JIT concept. Explanations received from these organizations confirmed that they understood the concept and they believed their ordering method was more of JIT than any other ordering method, although they expressed that many constraints made the JIT system to be very difficult to practice due to instability in government policies. The fixed quantity system encourages tying down of capital. Those organizations that used them explained that despite the shortcoming, it was better because the source of supply and lead time cannot be very certain or accurately predicted. This indicates that they placed more emphasis on regular production and customer’s satisfaction even at higher cost to the organization. The study sought to know the impact of shortage of inventory on workers performance, machinery utilization and profitability of the organizations in the different sectors. Using Likert rating index, the result revealed that the mean rating of the impacts of shortage of raw materials on workers efficiency, machinery utilisation, and level of profitability were 2.63, 2.46 and 2.27 respectively for Wood and Wood Products sector which were negative (Table 4),were while that of textiles and wearing apparent sector for workers’ efficiency, machinery utilisation and level of profitability were 2.53, 2.74 and 2.48 respectively which were also negative (Table 5). The results for the Food and Beverages sector and Fabrication and Metal products sector in Tables 6 and 7 show the same negative trend. 3.2 Discussions The objectives of the study were to examine the different inventory management practices and access the impact on the inventory decisions in SME Good inventory decisions are necessary to enhance efficiency and profitability of various manufacturing organizations. It has been discovered in this study that there is a wide gap between theory and practice of using models in arriving at inventory decisions in SMEs in the area of study. The application of inventory models, ratios, valuation and processing in arriving at sound decisions in SMEs is generally very low. Most decisions are based on rule of thumb and experience. The non usage of perpetual inventory method as revealed by interview of some organizations was due to the manual processing of inventory records and lack of emphasis on a structured inventory process. The inadequate number of relevant staff for this exercise could also prevent organizations from adopting the perpetual method. This suggests the need for a computerized system in order to facilitate the perpetual inventory approach. Based on the findings of this study in respect of the problems identified, the following suggestions and recommendations will be important to Small and Medium Scale manufacturing industries in order to enhance the needed contributions of this sector to the economic growth. (i) SMEs should institute structure to improve the knowledge of their personnel about inventory decision models. 153 using quantitative
  • 5. European Journal of Business and Management ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online) Vol.5, No.28, 2013 www.iiste.org (ii) Resultant upon the fact that inadequacy of data was one of the impediments to application of quantitative models for inventory, the SMEs should make the application of ICT for data management a priority. It is expected that these recommendations would provide the requisite policy framework for effective inventory management in SMEs. This would enhance their contributions to economic development REFERENCES Adam, E. E. and Ebert, J.R. (1993): Production and Operations Management: Concepts, Models and Behaviour, 5th edition. Prentice Hall, New Delhi. p 568 Adeyemi S.C. and Salami A.O. (2010): Inventory management. A tool of optimising resources in a manufacturing industry. Journal of Social Science 23(2). 135-142. Akintoye, I.R. (2004): Investment Decisions: Concepts, Analysis and Management. Glorious Hope Publishers. Lagos. p 370 Barker, T. (1989): The Essential of Material Management. McGraw Hill Book Co. London. p 261 Brigham, E.F. (1983): Fundamentals of Financial Management: The Dryden Publishers, Tokyo. p 549 Chase, R.B. and Aquilano , N.J. (1985): Production and Operations Management. 4thEdition , IRWIN Homewood . Illinios. pp 470-483,533 Dominiak, G.E. and LouderBack, J.G. (1997): Managerial Accounting, 8th Edition.: South Western College Publishing, Cincinate Ohio. p 258 Edwardson, W. (1989) : Improvement of the Small Scale Food Industry Developing Countries. UNIDO Industry Development, No. 27 p13 Forgionne, G.A. (1986): Quantitative Decision Making. Woodsworth Publishing Company. Balmont Califonia. p 660. Garrison, R.H. and Noreen, E.W .(2000): Managerial Accounting. Ninth Edition. Irwin McGraw Hill, New York p 407 Jegede, J.F.S. (1992): Stock Control for Cost Control. The Nigerian Accountant Journal October/December 1992 Vol. 25 No. 4 p 34. Kaynak, H. and Pagani, R.A. (2003): Just In Time Purchasing and Technical Efficiency in Manufacturing Sector International Journal of Production Research Vol.41 No 1 pp 1-14 the US Kotler P. (2002) Marketing Management 2nd Edition, The Millenium Edition. New Delhi,Prentice Hall, India Loveman,G and Sengenberger, W (1992): Economic and Social Reorganisation In the Small and Medium Enterprises Sector in Senegenberger W. Loveman G. and Piore M.J. (eds.) The Re- emergence of Small Enterprises: Industrial Restructuring in Industrialised Countries International Institute for Labour Studies, Geneva. p 43 Ogunleye, G.A. (2000): Small and Medium Scale Enterprises as Foundation for Rapid EconomicDevelopment in Nigeria. NDIC Quarterly Journal Vol. 10 December, 2000 N0 4. p 23 Orlicky, J. (1975): Material Requirement Planning: Mc Graw-Hill , New York . p 158. Pandey, I. M. (2005): Financial Management. Enlarged Edition,: Vikas Publishing House Ltd. New Delhi p. 904 Plane, D.R. (1994): Management Science – A Spread Sheet Approach Boys and Fraser Publishing Company. Danvers Massachetts p.245 Schreibfeder, J. (2001): Varying the Carrying Cost for Individual Product. Effective Inventory Management Inc. South Denton. http//www. effectiveinventoryCom/articles.htm Down loaded on 7th October, 2007 154
  • 6. European Journal of Business and Management ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online) Vol.5, No.28, 2013 www.iiste.org Tables Table 1: Usage of Inventory Models and Forecasting Methods No Yes of Respondents % No % Economics Order Quantity Model 52 24.52 160 75.47 Economics Batch Quantity Model 26 12.26 183 87.73 Ratio to Measure Stock Efficiency 38 17.92 174 82.08 Forecasting of Annual Demand of Material Input 46 21.70 166 78.30 Generation of Data for Stock Cost 34 16.04 178 83.96 Estimation of Annual Usage with Certainty 14 6.60 198 93.40 Executive Judgment Use to Determine Production Batch • 188 88.68 24 Multiple response options was responsible for total sum greater than 100% Table: 2 Reasons for Non Usage of Inventory Models Inadequate Time Wasting Knowledge Response(%) Response(%) Inadequate Data Response(%) Not Relevant to Operations Response(%) Others Response (%) Economic Order Quantity 134(83.75%) 8(5%) 16(20%) 2(1.25%) - Economic Batch Quantity 130(61.32%) 14(7.53%) 8(3.77%) 24(12.90%) 10(9.43% 155 11.32
  • 7. European Journal of Business and Management ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online) Vol.5, No.28, 2013 www.iiste.org Table 3: Inventory Processing, Ordering and Valuation methods No of Respondents Food and Beverages Textiles and Wearing Apparel Wood and Wood Products Fabrication and Metal Products Total Inventory ordering method Cyclical order system 4(1.89%) - 10(4.72%) Fixed quantity system 36(16.98%) 22(10.38%) 14(6.60%) Material requirement planning system 18(8.49%) 16(7.55%) 22(10.38%) 16(7.55%) 72(33.96%) Just in time system - 8(3.77%) 4(1.89%) 14(6.60%) 26(12.26%) No response 2(0.94%) - - - 14(6.60%) 18(8.49%) 90(42.5%) 8(3.77%) 10(4.72%) 26((12.26%) 72(33.96%) 6(2.83%) 24(11.32%) 24(11.32%) 104((49.66%) Valuation Methods Annual stock taking 18(8.49%) 6(2.83%) 22((10.37%) Perpetual stock taking 8(3.97%) 10(4.71%) Stock taking when necessary 30(14.15%) 28(13.21%) 22(10.37%) Others 4(1.89%) 2(0.94%) 6(2.83%) - - 12(17.67%) Processing methods: Manual 42(19.81%) 38 (17.92%) 34(16.04%) 22(20.75%) 158(74.53%) Semi computerized 12(17.67%) 4(1.89%) 16(7.55%) 8(3.97%) 40(18.86%) 6(2.83%) 4(1.89%) Computerized - 156 4(1.89%) 14(6.60%)
  • 8. European Journal of Business and Management ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online) Vol.5, No.28, 2013 www.iiste.org Table 4: Impact of Shortage of Raw Material on Performance (Wood and Wood Work Sector) 5 4 High Positive Impact Impact of Shortage of raw Materials on Workers’ Efficiency Impact of Shortage of raw Machinery Utilization 2.46b 3 Positive No Impact Impact 2(10) 2(8) 1(5) 2(8) Impact of Shortage of raw on Profitability 1(5) 2 Negative Impact 15(45) 1 High Total Negative Response Impact Weighted Mean Score Rating 6(6) 30 79 13(39) 8(16) 6(6) 30 79 5(15) 1(4) 5(10) 2(4) 2(2) 30 79 2.63a 2.27a * Mean followed by the same letter were not significantly different at 5% level of confidence Table 5: Impact of Shortage of Raw Material on Performance (Textiles and Wearing Apparel Sector) 5 4 3 2 1 High Positve Impact Impact of Shortage of raw Materials on Workers’ Efficiency 2.52a Impact of Shortage of raw Machinery Utilisation 2.74a Impact of Shortage of raw on Profitability Positive Impact No Impact Negative Impact 2(10) 1(4) 11(33) 2(4) 7(7) 1(5) 3(12) 13(39) 1(2) 5(5) 1(5) 1(4) 5(15) 15(30) High Negative Impact 3(3) Total Response Weighted Score 23 23 23 * Mean followed by the same letter were not significantly different at 5% level of confidence 157 Mean Rating 58 63 79 2.48a
  • 9. European Journal of Business and Management ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online) Vol.5, No.28, 2013 www.iiste.org Table 6: Impact of Shortage of Raw Material on Performance (Food and Beverages Sector) 5 4 High Positive Impact Impact of Shortage of raw Materials on Workers’ Efficiency - Impact of Shortage of Raw material on Machinery Utilisation 3(15) Impact of Shortage of raw Material on Profitability 1(5) 3 Positive No Impact Impact 1(4) 5(20) 2(8) 2 1 Negative Impact 10(30) 11(22) 8(24) 5(10) 5(15) 11(22) High Total Negative Response Impact 3(3) 4(4) 6(6) Weighted Score 25 Mean Rating 59 2.36a 25 73 3.92a 25 56 2.24a * Mean followed by the same letter were not significantly different at 5% level of confidence Table 7: Impact of Shortage of Raw Material on Performance (Fabrication and Metal Products Sector) 5 4 High Positive Positive 3 2 Negative Impact High Total Impact No Impact 1 Negative Response Weighted Mean Score Rating Impact Impact of Shortage of raw Materials on Workers’ Efficiency Impact of hortage of raw Machinery Utilisation Impact of Shortage of raw on Profitability • 3(15) Impact 7(28) 9(27) 2(4) 7(7) 28 81 2(10) 5(20) 11(33) 5(10) 5(5) 28 78 3.92a - 8(33) 10(30) 3(6) 7(7) 28 75 2.24a Mean followed by the same letter were not significantly different at 5% level of confidence 158 2.89a
  • 10. This academic article was published by The International Institute for Science, Technology and Education (IISTE). The IISTE is a pioneer in the Open Access Publishing service based in the U.S. and Europe. The aim of the institute is Accelerating Global Knowledge Sharing. More information about the publisher can be found in the IISTE’s homepage: http://www.iiste.org CALL FOR JOURNAL PAPERS The IISTE is currently hosting more than 30 peer-reviewed academic journals and collaborating with academic institutions around the world. There’s no deadline for submission. Prospective authors of IISTE journals can find the submission instruction on the following page: http://www.iiste.org/journals/ The IISTE editorial team promises to the review and publish all the qualified submissions in a fast manner. All the journals articles are available online to the readers all over the world without financial, legal, or technical barriers other than those inseparable from gaining access to the internet itself. Printed version of the journals is also available upon request of readers and authors. MORE RESOURCES Book publication information: http://www.iiste.org/book/ Recent conferences: http://www.iiste.org/conference/ IISTE Knowledge Sharing Partners EBSCO, Index Copernicus, Ulrich's Periodicals Directory, JournalTOCS, PKP Open Archives Harvester, Bielefeld Academic Search Engine, Elektronische Zeitschriftenbibliothek EZB, Open J-Gate, OCLC WorldCat, Universe Digtial Library , NewJour, Google Scholar