4.

5 Findings The company use too complicated inventory management system and the problem is that many of the programs are not very user-friendly. Also the company does not always have the time and money to invest in training of personnel to use this inventory management system effectively. There are unqualified and inexperienced employees in charge of inventory and also they are neglectful in their job, or dont have adequate training. Also the supervisor in charge of inventory management failed to look over their inventory on a regular basis to make sure enough products are in stock. This result affects the waiting for the shipment to come in can slow down the supply chain process and reduce the customer satisfaction. The processes they use are not wide enough and do not encompass all the aspects and factors in the company. There is the bullwhip effect which affects company inventory forecasting method. When there is the demand of a market changes, the company may panic and order an overstock of inventory, thinking that the new market conditions will move the inventory. Another inventory issue is the inventory misplacement or mixing problem. This can lead to higher inventory costs because the item must be re-ordered. Also the company must spend the time for employees to track down the misplaced or mixed items. The company is not maintaining proper inventory management information system for inventory handling. In that the quantities are off and the actual items are not available and many people assume that the computer records are reliable. So the inaccurate inventory records can easily result in loss of profits to the company.

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CHAPTER 05: RECOMMENDATIONS

I recommend to the company that it is better to count inventory on a cyclical basis rather than annually stock taking method to avoid the need for shutting down operations while stock is counted. The company should set minimum and maximum quantities which their buyers can order without prior approval. This ensures that company can maximize any volume discounts available through their vendors and preventing over-ordering of stock. Warehouse employees should be educated on the costs of improper inventory management. When they see a difference in their paychecks from poor inventory management, they are more likely to take precautions to prevent shrinkage. Also company need to be much more accurate on their records any time items arrive at or leave a warehouse, accurate paperwork should be kept, itemizing the goods. When inventory arrives, this is the time that the company will find breakage or loss on the goods their ordered. When inventory leaving the warehouse must be counted to prevent loss between the warehouse and the point of sale. Also even the samples should be recorded, making the salesperson responsible for the goods until they are returned to the storage facility. Records should be processed quickly, at least in the same day that the withdrawal of stock occurred. The company needs to manage employees buyers are the employees who make stock purchases for the company. Also controlling the supply and demand whenever possible, obtain a commitment from a customer for a purchase. In this way, the company ensures that the items that they order will not take space in company inventory for long. Inventory management should be a part of the overall strategic business plan for the company. As the business climate evolves towards a green economy, businesses are putting in place recycling procedures for packaging or other materials. In this way, inventory management is more than a means to control costs; it becomes a way to promote the company.

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REFERENCES

Albert Porter. (2011). Operations Management. Available:http://bookboon.com/en/textbooks /management-organization/operations-management. Last accessed 16th December 2012. Amanda J. Schmitt. (2007). Strategic Inventory Management for Supply Chains Subject to Supply Uncertainty. Available: http://web.mit.edu/aschmitt/www/Schmitt_Thesis.pdf. Last accessed 10th February 2013. BALAJI S. (2003). STUDY OF INVENTORY MANAGEMENT. Available:

http://share.pdfonline.com/b8701a8977c9467db4ab38ff6a35d1ee/Inventory%20Mgt%20in% 20IPPL_Tarun.htm. Last accessed 30th July 2013. Biliza Toppo. (2010). A Study on Inventory Management in Smelter Plant. Available: http://www.scribd.com/doc/33867182/Project-On-Inventory-Management. Last accessed 24th January 2013. Chris Joseph. (2013). Reasons for Inventory Control. Available: Last accessed 02nd

http://smallbusiness.chron.com/reasons-inventory-control-2227.html. February 2013. Dr. Sue Greener. (2008). Business Research

Methods. Available:

http://bookboon.com/en/textbooks/management-organisation/introduction-to-researchmethods. Last accessed 16th December 2012. Floyd D. Hedrick, Frank C. Barnes, Edward W. Davis, D. Clay Whybark, Murray Krieger. (). InventoryManagement. Available:http://archive.sba.gov/idc/groups/public/documents/sba_ homepage/pub_mp22.pdf. Last accessed 19th February 2013. Harishani L. Liyanage. (2010). An Empirical Investigation of Inventory Management Practices of Processed Food Supply Chain in Sri LankaManufacturers Perspective: A Case Study. Available:http://acv.usm.edu/ijltr/papers/volume_01/individual_papers/paper_0 Last accessed 19th February 2013. managementstudyguide.com. (2008 2012). Inventory Management.Available: .pdf.

http://www.managementstudyguide.com/inventory-management.htm. Last accessed 18th Jan 2013.

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Max Muller (2003). Essentials of inventory management. New York: AMACOM. P001-216. Mcgraw-hill. (2009). Inventory Management. Available: http://highered.mcgraw-

hill.com/sites/dl/free/0073525235/940447/jacobs3e_sample_ch11.pdf. Last accessed 19th February 2013. Mohan V. E. - CII Institute of Logistics, Chennai. (2008). WAREHOUSING & INVENTORY MANAGEMENT. Available: http://www.ciilogistics.com/research.htm. Last accessed 15th July 2013. S. Anil Kumar, N. Suresh. (2009). INVENTORY CONTROL OR MANAGEMENT. In: S. Anil Kumar, N. Suresh Operations Management. New Delhi: New Age International (P) Ltd., Publishers. P176-180. S. L. Adeyemi & A. O. Salami. (2010). Inventory Management: A Tool of Optimizing Resources in a Manufacturing Industry A Case Study of Coca-Cola Bottling Company, Ilorin Plant. Available: http://www.krepublishers.com/02-Journals/JSS/JSS-23-0-000-10-Web/JSS23-2-000-10-Abst-PDF/JSS-23-2-135-10-704-Adeyemi-S-L/JSS-23-2-135-10-704-AdeyemiS-L-Tt.pdf. Last accessed 16th December 2012. Ted Hurlbut. (2004). Exploring Inventory Carrying Costs. Available:

http://www.hurlbutassociates.com/retail-perspectives-blog/bid/50274/The-Full-Cost-ofInventory-Exploring-Inventory-Carrying-Costs. Last accessed 19th Jan 2013. Vaibhav Agarwal. (2012). PROJECT REPORT ON INVENTORY MANAGEMENT. Available: http://www.scribd.com/doc/23322561/Final-Report-of-Inventory-Management111. Last accessed 25th January 2013.

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Name: ........... QUESTIONNAIRE This survey is planned to identify the factors affecting the cost of inventory in UK Beverages (Pvt) Ltd. This questionnaire has been prepared by Darshana Samiddhi Jayawardena for the purpose of making research of B.Sc. in Business Management (Logistics Management) Degree. The confidentiality of your information is highly ensured. Use following solution when answering the questions below. HD N HA Highly Disagree Neither Agree nor Disagree Highly Agree D A Disagree Agree

Job knowledge of the labors 1. Always uniform tasks have to be turned into non educated employees. HD D N A HA

2. Critical & important things for the process have to be handled by educated employees. HD D N A HA

3. When pointing out the employee for the specific position thinks about their possibility & desire. HD D N A HA

Lead Time 4. Some monopolistic manufacturing items sometimes getting delay because of their willingness. HD D N A HA

5. Sometimes inventory department is not awaking stock in & stock out level. HD D N A HA

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6. Authorizations & making approvals are getting delay. HD D N A HA

Safety of the materials at factory 7. Keep well stores lightning security system & other infrastructure. HD D N A HA

8. Keeping separate place for the danger goods. HD D N A HA

9. Keeping good software for inventory management system. HD DD N A HA

Warehouse capacity for inventory 10. Using optimize space for stocking optimum quantity. HD D N A HA

11. Unnecessary entrance should be minimized. HD D N A HA

12. Warehouse racking system and palletize system needs to be optimal. HD D N A HA

Cost of inventory 13. Labor appointing for the relevant job would be highly productive for reducing the inventory cost. HD D N A HA 14. Using experience labor for critical jobs could be cost saving of the inventory. HD D N A HA 15. Keeping better security system is important always for managing inventory cost. HD D N
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HA

16. Using EOQ quantity when placing the order then inventory cost could be minimized. HD D N A HA

17. Allocating the optimized warehouse capacity would be a great advantage of minimizing the inventory cost. HD D N A HA

THANK YOU VERY MUCH FOR YOUR PARTICIPATION!

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