Thesis Abstract and Dissertation Abstracts
Assessing The Impact Of Efficient Inventory Management In An Organization - Korle Bu Teaching Hospital
Abstract Category: Accounts and Economics
Course / Degree: Master of Science, Economics
Institution / University: Atlantic International University, United States
Published in: 2013
The inefficient inventory control measures by procurement officers and store keepers have always been a central Problem. Inexperience workers are likely to spend no effort in their job they sometimes absent themselves from work and also produce low quality work. On the other hand, workers who are experienced and have passion for work are likely to produce high quality work and also achieve their goals and objectives.
Employers need to know their workers very well (their abilities and capabilities) and use different tactics to encourage them to work effectively.
Once training and development is very important determinant in performance and productivity, this area of knowledge need further research, therefore the goal of this project is to reveal what it is that encourage all workers to perform at their best and achieve optimal business result at all times. The inherent problem I have identified is that many employers have attempted several different strategies to encourage their workers to work effectively, yet the strategies have not worked for everyone in the company.
Primary and secondary source of data will constitute the bulk data for the project. The primary Source of data would be gathered through a well-structured open and close-ended questionnaire. Data from secondary source will be gathered primarily from Korle Bu Teaching Hospital records. Twenty five (25) people were selected at random from Korle Bu Teaching Hospital at all levels. Twelve (12) out of the twenty five (25) questionnaires were received.
The data gathered will be both qualitative and quantitative. The data to be gathered would be analyzed with appropriate tools. Additionally, adequate literature will be reviewed to extract fact for use in the analysis.
The research work is based on Inventory Management Practices in an organization (Korle Bu Teaching Hospital). Most Public and Private sector organizations have failed because of mismanagement of inventory. It is therefore important to manage our inventory very well. It is evident that the profitability of any business organization depends largely on the ability of management to exercise effective purchasing and efficient material control.
Inventory which typically represents 45% to 90% of all expenses of organization are needed to ensure that the business has the right goods on hand to avoid stock out and provide proper accounting. Inventory is defined as a list of goods and materials or those goods and materials held available in store. An inventory system is the process of managing and locating material. The success of many organizations today is directly related to the smooth management of inventory. Inventories constitute the most significant part of current assets of a large majority of organization in Ghana. Inventories are approximately 70% of current asset of organizations.
Inventory management is about specifying the size and placement of stocked goods. It required at different locations of a supply network to protect the regular and planned course of production against the disturbance of running out materials or goods. Many companies have gone through a lot of challenges. Despite the many challenges that companies go through the basic principle of inventory management remain the same. Inventory held by an organization represents a large percentage of their capital. Inventory control involves the coordinating of materials available, utilizing and procuring of material. Inventory control is the direction of activities with the purpose of getting the right inventory in the right place at the right time and in the right quality.
Inventories are the stock of raw materials, work in progress, finished goods and supplies held by a business organization to facilitate operations in the production process, (Pandey, 1995).Also if the company fails to manage its inventory efficiently, it is likely to face profitability problems (Block and Hirt,1987).The goal of inventory control include:
(i) to minimize the costs involved in purchasing, stocking, and issuing of the supplies,
(ii) to reduce the frequencies of ordering for stock items,
(iii) to decrease pilferage, waste and over stocking;
(iv) to integrate and deploy within the logistical system the minimum amount of inventory consistent with desired delivery capability and total cost expenditure,
(v) to ensure adequate supply of products to customer and avoid shortages as far as possible, and
(vi) To provide a reserve stocks for variations in lead of delivery of materials. Ahuja (2002) and Martand (2009).
Inventory management helps organization to establish the proper inventory levels through the economic order quantity; and to keep track of this level through inventory control system which many are manual such as two bin method and red line method, or computerized inventory control systems. Proper inventory controls also require an organization to undertake stocking and use appropriate method to value stock so as not to under or over state profits (Kotabo, 2002).
Companies incurred substantial costs in the procurement and maintenance of inventories, which costs form a large portion of production costs. Inventory costs include: carrying costs such as storage and insurance; ordering costs like transporting and store placement; and stock out costs like redundancy and loss of sales. A company cannot achieve an outstanding performance without proper and efficient control of materials. Materials are as much as cash itself and any theft, wastage and excessive use of materials are of immediate financial loss and leads to poor performance of a company (Kotabo, 2002).
Laugero (2002) noted that Material control involved a systematic control and regulation of purchase, storage and usage of materials in such a way to maintain an even flow. In recent years, organization’s has been facing a number of challenges especially in inventory management or material control, thus affecting the performance of most them. There have been cases of materials overstocking which eventually get expired or out dated, under stocking lack of stock-taking theft of materials by workers and delays in deliveries of materials at the sites, among others.
Efficient inventory control can be done through introduction of different measures so as to prevent the company from incurring unnecessary losses made by different departments. Measures which can be put in place for example stock-taking which is the accounting of stock at every end of the month, so as to record the lost and available stock, etc. The company should set up strict rules to procurement officers and store managers which they should follow during purchasing and storing of material so as to avoid loss.
It is therefore important for an organization to have a sound, effective and well-coordinated inventory management system because the business environment is rapidly changing, highly competitive and it drastically affects the performance of the organization.
Thesis Keywords/Search Tags:
Inventory Management
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Submission Details: Thesis Abstract submitted by David Ackah from Ghana on 08-Mar-2015 16:00.
Abstract has been viewed 3919 times (since 7 Mar 2010).
David Ackah Contact Details: Email: drdavidackah@gmail.com Phone: +233 244 218 418
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