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INVENTORY MANAGEMENT AND ORGANIZATIONAL PERFORMANCE (Study of

Dansa Food Limited)

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 INVENTORY MANAGEMENT AND ORGANIZATIONAL PERFORMANCE

(Study of Dansa Food Limited)

Phebe Simon
Nutrient Solutions Limited, Lagos`
Menorahsig@gmail.com

Njoku Peter Paul Chukwuemeziem

The Saints Innovative Solutions Owerri/Chartered Institute of Project Management Nigeria
thesaintsintservices@gmail.com

Abstract

This study examines inventory control and organizational performance, using Dansa Food
Limited for study. There has been inefficiency and uncharted inconsistence to address challenges
associated with inventory control. The creation and maintenance of optimum inventory is very
essential for continuity of production, fuller utilization of men and machines and ability to meet
specific customers demand in time. A survey research was conducted with a purposive non-
probability sampling technique. The instrument of data collection and measurement was well-
structured and standardized questionnaire and five point weighted scale. The statistical tool used
for data analysis and test of research hypotheses was one sample t-test. The results of the
analysis indicate that inventory control has a significant positive impacts on the performance
parameters of organizations and therefore contributes to economic production quantity and
quality of Dansa Food Limited products at budgeted costs and scheduled time to customers and
hence profitability of manufacturing firms. The study therefore, recommends institution of robust
strategy and policy framework for effective inventory control and its sustainability for
continuous improvement of organizational performance.

Keywords: Inventory Management, Organization, Inventory Control, Optimization

1
Introduction

Historically, Inventory management globally has often meant too much inventory and too little

management or too little inventory and too much management. There can be severe penalties for

excesses in either direction.

Inventory problem has proliferated, as technological progress has increased the organization

ability to produce goods in greater quantities, faster and with multiple designs. The public has

compounded the problem by its receptiveness to varieties and frequency design changes,

(Godana and Ngugi 2014). There is no doubt that since the mid80s, the strategic benefits of

inventory management, production planning and scheduling have become obvious.

For many organizations, there is no doubt that inventory management enhances their operations.

Organizations with high levels of inventories such as raw material, work in process and finished

good; can sustain production, ensure free flow of materials and offer a wide range of products,

which makes easy the deliveryof goods to the customers.

Inventories therefore, need to be controlled in such a manner, as to leverage on organizational

productivity and overall performance. Inventory control involves procurement, utilization,

controlling and co-ordination of available materials. Inventory control is the direction of

activities with the purpose of getting the right materials, at the right quality and quantity, in the

right place at the right time and it is directly linked to production function of any organization

which implies that, the inventory management system operated, will affect the profitability of an

organization, directly or indirectly (Ahn, 200). Inventories are the stock of raw materials, work in

progress and finished goods held by a business organization to facilitate operations in the

production process (Pandey, 1995).

2
Therefore, if a company fails to manage its inventory efficiently, it is likely to face profitability

problems (Block and Hirt, 1987). The goal of inventory management is to provide the

inventories required to sustain operations at minimum costs (Dickson 1995).

Inventory control helps organization to establish the proper inventory levels through the

economic order quantity and to keep track of this level through inventory control system, of

which many are manual such as Two Bin Method and Red Line Method, or computerized

inventory control systems.

Proper inventory control requires an organization to undertake stocking and use appropriate

method to value stock, so as to avoid under or over estimation of profits (Kotabo, 2002).

Companies experience substantial costs in the procurement and maintenance of inventories,

which cost form a large portion of production costs. Inventory costs include carrying costs such

as storage and insurance, ordering costs like transportation and store placement, as well as stock

out costs like redundancy and loss of sales. A company cannot achieve an outstanding

performance without proper and efficient control. Any theft, wastage and excessive use of

materials are of immediate financial loss and leads to poor performance of a company (Katobo,

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,

the manufacturing industry has been facing a number of challenges especially in inventory

management or material control, thus affecting the performance of most manufacturing

companies.

3
There have been causes of materials over-stocking, which eventually get expired or out dated.

Under stocking, lack of stocking, materials theft by workers and delays in delivery of materials

to the sites, among others inventory control, can be done through introduction of different

measurers, so as to prevent the company from incurring unnecessary losses made by defuel

departments. The company should set up strict rules to procurement officers and store manager,

which they should follow during purchasing and storing of materials, to avoid loss of inventory.

Using Dansa Food Limited for the study, this company has existed for over the years with the

objective of maximizing profits and providing better services to customers at the right time. Till

date, the company does not focus on how much of each inventory item, the firm should hold in

stock, how much should be ordered at a given time and at what point inventory should be

reordered. This has greatly affected its production, sales and hence reducing its financial

profitability. 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 is drastically affecting the performance of many

organization.

The major decisions in inventory control of any organization, concerns the time to replenish an

order and the quantity of such an order. The failure to manage these two concerns has

significantly increased the total cost of the organizational performance (Dansa Food Limited), in

the past years. The increase in demand for the company products coupled with modern

production technology, resulted in vast number of different types of inventories and the control

has become a complex functions or process. Most of the challenges associated with inventories

control and how they impact on the performance of Dansa Food Limited, has not been explored.

No study has been carried out to ascertain the impact of inventory control on the performance of

4
the company, so as to provide avenue and generate ideas for better control mechanism, which

will be consistent with global best practice of similar operations.

Up till date the company uses Bin card method, although supported by the use of computer,

according to the inventory manager. There exist run out of stock from time to time. The

organization is therefore, faced with the problem of unpredictable performance due to

complexities associated with inventory control. As a result, uncertainty and planning errors in

production do exist. In turn, these have resulted to under utilization of machinery, lost of man

hour, high production costs, poor businesses and low return on investment. Therefore, the

company find it difficult to comfortably cope with high number of employees and adjust to

performance requirements of modern production technology. When look into the type of

inventory management system adopted in Dansa Food Limited and the effect it has on the profit

margin, it tends towards the downward side.

The issues of the volume of the company’s resources consumed are not usually examined in

relation to inventory control system in place. The principles of scientific inventory control are

not adopted, which could have been simply enough, for even the clerical staff to operate without

previous experience in inventory management or control. Decisive managerial actions are

needed, to assess the existing inventory control measures in relation to performance of the

Organization.

The main aim of the research work is to analyze the impacts of effective inventory management

on organizational performance objectives using Dansa Food Limited as case study.

5
Research Method

A descriptive survey was employed to explore an inventory management as a tool for project

cost control in dredging operation. A descriptive survey was considered because it is non-

experimental and it studies the relationship between non- manipulated variables in a natural

setting. It also allows the collection of a large amount of data from a sizable population in a

highly economical way. The choice of a survey design depended on the relatively large scale of

the sample. The data collected was primarily quantitative in nature. The research design covers

sampling and choice of data collection method and concludes with a consideration of problems

encountered in the data collection.

In order to find information about inventory management as a tool for project cost control in

dredging operation, there was questionnaire administration. Visual observation was also utilized

to verify processes, storage facilities, monitoring devices and performance of activities to

corroborate the information provided by the respondent on the questionnaire which was

personally administered.

The population in this research consists of Dansa Group of company, in Ikeja, Lagos state. The

sample size was randomly chosen to be 220; this is so because random selection removes the

issue of bias on the part of the researcher.

The primary data collected was initially edited to detect and correct any omissions and errors to

ensure consistency and completeness. The demographic characteristics of the respondents were

analyzed using the simple percentage technique, research questions were analyzed using both

simple percentage and descriptive statistic which showed the mean and standard deviation, while

the research hypotheses formulated was analyzed using different ONE SAMPLE T-TEST. The

6
choice of these tools was as a result of the type of data obtained from the survey and the

assumption made about the background population. The data was analyzed with the help of

statistical software known as SPSS version 21.

Results and Discussion

Table 1 Approaches to Inventory Control Adopted by Firm of Study

First Approach Responses Frequency Percentage (%)

Goods Inspected on Strongly Disagree 2 1.0

Reception
Disagree 3 1.5

Neutral 5 2.5

Agree 25 12.5

Strongly Agree 165 82.5

Total 200 100.0

Second Approach Responses Frequency Percentage (%)

Maximum Attention Strongly Disagree 2 1.0

Paid to Inventory with
Highest Value Disagree 2 1.0

Neutral 4 2.0

Agree 9 4.5

Strongly Agree 183 91.5

Total 200 100.0

Source: Field Survey August, 2016

From the analysis, table.1 reflected that the duo inventory approaches of goods inspection at

reception and maximum attention paid to highest value inventory adopted by the firm of study

(Dansa Food Limited) are strong inventory approaches in reducing costs of manufacturing firms.

This finding is reflective of the fact that majority of the respondents strongly agreed to them
7
both. For the first approach, 82.5% (165) out of the 200 respondents strongly agreed that the

approach is undertaken in the firm of study; and for the second approach, 91.5% (183) still out of

the 200 respondents strongly agreed that such approach is carried out in the firm of study. But

however, the approach in higher use among the two is shown in the table below.

Table 2 Descriptive Statistics for Approaches to Inventory Control

Approaches to N Minimu Maximum Mean Std. Deviation

Inventory Control m

Goods Inspected on 200 1.00 5.00 4.7400 .67429

Reception
Maximum Attention 200 1.00 5.00 4.8450 .59392
Paid to Inventory with
Highest Value

Valid N (listwise) 200

SPSS computation version 21

Table 2 clearly showed that the second approach (i.e maximum attention paid to inventory with

highest value) with a mean value of 4.8450 is highly in use in the firm of study more than the

other approach with a mean value of 4.7400, and thus has more impact as an approach in the

reduction of cost of manufacturing.

Table 3 Inventory Costs Incurred In Procurement Process

Transportation and Freight Responses Frequency Percentage (%)

Cost

Manufacturing Industries Strongly Disagree - 0

are faced with
transportation and freight Disagree - 0
cost Neutral 3 1.5
Agree 14 7.0

8
 Strongly Agree 183 91.5
Total 200 100.0
Requisition Expenses Responses Frequency Percentage (%)

Manufacturing Industries Strongly Disagree 2 1.0

are faced with expenses of
making requisition Disagree 4 2.0
Neutral 14 7.0
Agree 34 17.0
Strongly Agree 146 73.0
Total 200 100.0

Purchase Order Cost Responses Frequency Percentage (%)

Manufacturing Industries Strongly Disagree 8 4.0

are faced with the cost of
writing purchase orders Disagree 8 4.0
Neutral 19 9.5
Agree 70 35.0
Strongly Agree 95 47.5
Total 200 100.0
Receiving Materials Cost Responses Frequency Percentage (%)

Manufacturing Industries Strongly Disagree 1 0.5

are faced with costs of
receiving materials Disagree 9 4.5
Neutral 15 7.5
Agree 72 36.0
Strongly Agree 103 51.5
Total 200 100.0
Checking Order Cost Responses Frequency Percentage (%)

9
Manufacturing Industries Strongly Disagree - 0
are faced with costs of
checking orders and Disagree 4 2.0
maintaining records of Neutral
27 13.5
entire process
Agree 44 22.0
Strongly Agree 125 62.5
Total 200 100.0
Handling Costs Responses Frequency Percentage (%)

Manufacturing Industries Strongly Disagree - 0

are faced with handling
costs Disagree - 0

Neutral 9 4.5
Agree 21 10.5
Strongly Agree 170 85.0
Total 200 100.0
Storage Costs Responses Frequency Percentage (%)

Manufacturing Industries Strongly Disagree - 0

are faced with storage costs
Disagree 1 0.5
Neutral 9 4.5
Agree 36 18.0
Strongly Agree 154 77.0
Total 200 100.0
Source: Field Survey August, 2016

From table 3, no respondent disagreed that manufacturing industries are faced with
transportation and freight costs. 1.5% (3) respondents played neutral to the question, 7% (14) and
91.5% (183) out of the total respondents agreed and strongly agreed respectively to the assertion,

10
especially as regards the firm of study, bringing to the fact that according analysis, that
manufacturing firms are faced with transportation costs

Furthermore, analysis in the second inventory costs category in procurement process shows
manufacturing firms are faced with requisition expenses. This can be attested to by a percentage
and number of respondents precisely 17% (34) and 73% (146) that agreed and strongly agreed
respectively to the statement.

Same is applicable to other inventory costs, precisely, purchase order costs, receiving materials
costs, checking order costs, handling costs and storage costs. The analysis showed that
manufacturing firms are faced with these inventory costs. The figures and percentage backing up
the fact are clearly reflected in table 4.3.4 above.

But to ascertain the inventory costs that highly affect than the other procurement processing
Dansa Food Limited (firm of study), the table and chart below gives a clearer representation.

Table 4 Descriptive Statistics for inventory costs incurred in procurement process

N Minimu Maximu Mean Std.

m m Deviation

Transportation and Freight Costs 200 3.00 5.00 4.9000 .34728

Requisition Expenses 200 1.00 5.00 4.5900 .79059

Purchase Order Costs 200 1.00 5.00 4.1800 1.03098

Receiving Materials Costs 200 1.00 5.00 4.3350 .84042

Checking Order Costs 200 2.00 5.00 4.4500 .80044

Handling Costs 200 3.00 5.00 4.8050 .49821

Storage Costs 200 2.00 5.00 4.7150 .57044

Valid N (listwise) 200

SPSS computation version 21

11
 6
4.9 4.805 4.715
5 4.59 4.45
4.18 4.335
4

Fig 1 Bar Chart for inventory costs incurred in procurement process

Table 4 and depicts the ranking of influence of the identified inventory costs in the procurement

process of the firm of study. The analysis clearly shows that transportation and freight costs with

a mean value of 4.9000 has more cost impact on the procurement process in Dansa Food

Limited, followed by handling costs with mean value of 4.8050, after it comes storage costs with

mean value of 4.7150, then follows requisition expenses with mean value of 4.5900, checking

order costs with mean value of 4.4500, receiving materials costs with mean value of 4.3350 and

finally purchase order costs with a mean value of 4.1800.

12
Table 5 The relationship between inventory control practice and profitability of

Manufacturing industries

Responses Frequency Percentage (%)

The profitability of Strongly Disagree 20 10

manufacturing
industries can be Disagree 30 15
generated by Neutral 17 8.5
maximum attention
paid to those Agree 20 10
inventories whose
Strongly Agree 113 56.5
value is highest
Total 200 100.0

Responses Frequency Percentage (%)

The profitability of Strongly Disagree 38 19

the manufacturing
industries generated Disagree 98 49
from inventory Neutral 30 15
control is majorly as
a result of the skills Agree 20 10
of store staff
Strongly Agree 14 7

Total 200 100

Responses Frequency Percentage (%)

Practice that gives Strongly Disagree 19 9.5

rise to less capital tie
up in inventory,result Disagree 21 10.5
to 30% of Neutral 32 16
profitability in
manufacturing Agree 39 19.5
industries
Strongly Agree 89 44.5

Total 200 100

Source: Field Survey August, 2016

13
 Table 5 above clearly showed first that maximum attention paid to inventory with the highest

value can give rise to profitability in manufacturing industries. This can be attested to by the

figures above. The figures showed that 10% (200) and 15% (30) of the respondents strongly

disagreed and disagreed respectively to the assertion, 8.5% (17) played neutral or have no

knowledge about the assertion, while 10% (20) and 56.5% (113) of the respondents strongly

agreed and agreed to the statement. This result qualifies the assertion that profitability of

manufacturing industries can be generated by maximum attention paid to inventory with the

highest value.

The second item in the table has results as thus- 19% (38) of the respondents strongly disagreed

to the statement in the item, 49% (98) disagreed, 15% (30) has no idea, while 10% (20) and 7%

(14) of the respondents agreed and strongly agreed respectively to the item statement. The result

for the item points that the profitability of the manufacturing industries generated from inventory

control is not majorly as a result of the skills of store staff.

The third item in the table shows that practice that gives rise to less capital tie up in inventory,

results to 30% of profitability in manufacturing industries. This is attested to by 64% (128) of the

respondents that in general agreed to the item statement. The figure is a sum of responses of both

agreed and strongly agreed.

Table 6 Impacts of inventory control on the Performance Objectives

Economic Production Quantity Responses Frequency Percentage (%)
Efficient economic production Strongly Disagree 15 7.5
quantity is strongly linked to Disagree 16 8
inventory control
Neutral 17 8.5
Agree 25 12.5
Strongly Agree 127 63.5

14
 Total 200 100.0
Budgeted Cost Responses Frequency Percentage (%)
Efficient inventory control help meet Strongly Disagree 18 9
budgeted cost of production activities Disagree 18 9
and reduces production cost overrun Neutral 29 14.5
Agree 31 15.5
Strongly Agree 104 52
Total 200 100
Scheduled Time Responses Frequency Percentage (%)
Production activities of Dansa Group Strongly Disagree 10 5
of company Plc are not completed Disagree 10 5
behind scheduled due to inventory Neutral 30 15
control Agree 50 25
Strongly Agree 100 50
Total 200 100
Products Quality Responses Frequency Percentage (%)
Rate of usage, Lead time and Stock Strongly Disagree 6 3
level at Dansa Food Limited affects Disagree 12 6
the quality of products Neutral 22 11
Agree 30 15
Strongly Agree 130 65
Total 200 100
Source: Field Survey August, 2016

In Table 6, the result for the first item (economic production quantity) shows that efficient

economic production quantity is strongly linked to inventory control. This attested by the

respondents responses, in which 63.5% (127) and 12.5% (25) of them strongly agreed and agreed

respectively to the item statement.

The result of the second item (budgeted cost) in the table shows that efficient inventory control

help meet budgeted cost of production activities and reduces production cost overrun. This is

qualified by the responses of respondents, where 52% (104) and 15.5% (31) of them strongly

agreed and agreed respectively to the item statement.

15
In the third item which is scheduled time, result shows that production activities of Dansa Food

Limited are not completed behind scheduled due to inventory control. This holds as research

result due to respondent responses where 50% (100) and 25% (50) 0f them strongly agreed and

agreed respectively to the item statement in the table.

The result for the fourth and last item in the table shows that inventory control in terms of rate of

usage, lead time and stock level, affects the quality of products at Dansa Food Limited.

Ho1: The impact of inventory control on the performance of Dansa Food Limited, vis-à-

vis budgeted cost of production and economic production quantity is not significant.

Table 7 One-Sample Test for Hypothesis One

Test Value = 0

T Df Sig. (2- Mean 95% Confidence Interval

tailed) Difference of the Difference

Lower Upper

Production activities of Dansa Food 50.92 19 .000 4.10000 3.9412 4.2588

Limited are not completed behind 3 9
scheduled due to inventory control

SPSS computation version 21

The one sample t-test above show that the, Tcal= 50.923 with p –value (sig) = 0.000 which is less

than 0.5 level of significance, we therefore reject the null hypothesis and conclude that inventory

control at Dansa Food Limited has significant impact on the scheduled time of production.

16
H02: There is no significant relationship between inventory control and budgeted cost of

production in Dansa Food Limited.

Table 8 One-Sample Test for Hypothesis Two

Test Value = 0

T Df Sig. (2- Mean 95% Confidence

tailed) Differen Interval of the
ce Difference

Lower Upper

Efficient inventory control help meet 40.93 199 .000 3.92500 3.7359 4.1141
budgeted cost of production activities 7
and reduces production cost overrun

SPSS computation version 21

The one sample t-test above show that the, Tcal= 40.937 with p –value (sig.)= 0.000 which is less

than 0.5 level significance. We therefore reject the null hypothesis and conclude that there is

significant relationship between inventory control and budgeted cost of production in Dansa

Food Limited. Thus a veritable avenue for reducing production cost and cost overrun at Dansa

Food Limited.

H03: The impact of inventory control on the product quality of Dansa Food Limited is

not significant.

Table 9 One-Sample Test for Hypothesis Three

Test Value = 0

t Df Sig. (2- Mean 95% Confidence

tailed) Difference Interval of the
Difference

17
 Lower Upper

Rate of usage, Lead time and Stock 56.686 199 .000 4.33000 4.1794 4.4806
level at Dansa Food Limited affects
the quality of products

SPSS computation version 21

The one sample t-test above shows that the, Tcal = 56.686 with p- value =0 .000 which is less

than 0 .05 level significance. Therefore we therefore reject the null hypothesis and conclude that

there is significant relationship between the levels of inventory control and product quality in

Dansa Food Limited. Efficient inventory control is a sine qua non to product quality.

Discussion of Results

Inventory control is a planned approach of determining what to order, when to and how much to

order; and how much to stock so that costs associated with buying and storing are optimal

without interrupting production and sales of Dansa Food Limited products. The finding of the

study is expected to address the challenges posed by inventory control at Dansa Food Limited

and provided avenues to ensure:

❖ Adequate supply of quality products to customers as and when due without shortages

❖ Financial investment in inventory is minimum

❖ Provision of reserve stock for variation in lead times of delivery of materials thus

avoiding production interruptions

❖ Maintaining timely record of inventory at all times and to maintain the stock within the

desired limit

18
 ❖ Efficient purchasing, storing, consumption and accounting for materials. All these are

tailored to cushion the effects of inventory cost at Dansa Food Limited such as ordering

cost, carrying costs, production cost, as identified with the company.

The study assessed the impact of inventory control on the organizational performance, with

Dansa Food Limited as a case study. The results of the three formulated and tested hypotheses

indicate that inventory control has significant impacts on the cost performance objectives of

Dansa Food Limited operations.

Inventory control ensures that economic production quantity of Dansa Food Limited is attained

and achieved at minimal cost. Also inventory control has significant impacts on the scheduled

time of production and quality of Dansa Food Limited products. The result of the study is in

conformity with Telsang (2010). It is an established fact that through the practice of scientific

inventory control, the stock can be reduced anywhere between 10 percent to 40 percent (Telsang

2010). Also effective inventory control reduces the costs associated with inventory management

such as production or purchase cost, capital cost, ordering and carrying costs.

Furthermore the results from the research questions asserts that the identified inventory approach

(es) are two, namely, (1) goods inspected at reception and (2) maximum attention paid to

inventory with the highest value. Also further results confirms that among the inventory costs

indentified as being operational in Dansa Food Limited, transportation/freight costs is the most

affecting inventory cost on the firm of study’s production and profitability; followed by

handling costs, then comes storage costs, requisition expenses and others.

The significant results of both the three tests of hypotheses and the research questions could be

adduced to the benefits of inventory control.

19
Inventory control ensures improvement in customer relationship because of timely delivery of

goods and services as the company has numerous customers in different parts of Nigeria.

The demand for Dansa Products are always high, and therefore necessitates smooth and

uninterrupted production to avoid stock out. Considering the huge investment outlay of Dansa

Food Limited, efficient utilization of working capital is necessary and dependent on efficient

inventory control. The inferences from the results of tests of hypotheses, further indicates that

inventory control at Dansa Food Limited, will ensure economy in purchasing and operations, and

eliminates the possibility of duplicating orders. Inventory control also helps in minimizing loss

due to deterioration, obsolescence, damage and theft. It could therefore lead to overall significant

impact on the organizational performance objectives.

Conclusion
The manufacturing firm is a medium of job opportunities in the country. Effective control of the

inventory would go a long way to improve its annual turnover and profitability, hence sustaining

the growth of manufacturing firm for further contribution towards development.

However, adequate attention is not paid to scientific methods of management of these inventories

due to a number of reasons

• Inadequate fund

• Lack of trained personnel

• Inaccurate forecasting

If every manufacturing firm will employ one inventory trained staff with little training. Some of

these scientific inventory techniques could be translated into charts, tables, graph which could

easily be followed by other staff with little training.

20
Seminars and lectures on inventory management techniques are also desirable and it is the hope

of the researcher that the funding in this study be useful to stakeholders/ manager in both

manufacturing firm and other business organization.

Recommendation
This research has established a number of factors militating against effective control of

inventories. Based on this finding and conclusion drawn, I now make the following

recommendation:

Since organization cannot relegate the importance of evolving and maintaining effective

inventory control system to the background. There is the need for them to adopt a proactive

attitude towards the issue. Being proactive requires maintenance of the right level of inventory at

any point in time. Organizations should avoid the dangers that are inherent in keeping too little

or too much of stock.

To achieve the above, it is recommended that organizations adopt the inventory keeping method

that best suits their operation. Here, just-in-time method could be considered as an option as it

has been proven to be effective in maintaining the right level of inventory and also prevent stock-

outs. There is also the need for organizations to train their personnel in the area of inventory

control management. What this means is that only trained professional with the requisite skill

should be in charge of inventory management.

The reason is obvious as most organizations inventory control programmers failed to achieve the

intended objectives due to lack of skilled and trained professionals to manage it. The present

advancement in technology, has made inventory control management easier with the use of

software. The implication of this, is that organizations have wide range choice of soft-ware that it

21
can adapt to its operations, in respect of inventory control system. In fact, the era of manual

control of inventory is gone; especially, with increasing volume of inventories in organizations,

computer based inventory systems will be more effective than using manual method.

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