Factors affecting Inventory management system in FMCG of Bangladesh

A Thesis Paper

Submitted to the MBA (professional)

Bangladesh University of Professionals
for the Degree Master of Business Administration

Prepared by
Muntakim Rahman
ID: 2123031042
th
Batch: 26

Section: B

Supervised by
Asst. Prof. Mohammed Moin uddin Reza
Department of Business Administration in
Bangladesh University of Professionals

Date of submission
27 January, 2023

1
 LETTER OF TRANSMITTAL

27 January, 2023

Mohammed Moin uddin Reza

Assistant Professor,

Bangladesh University of Professionals

Dhaka Cantonment, Dhaka.

Subject: Letter of Transmittal.

Honorable Sir,

With humble honor and respect, I am a student of MBA (Professional) 26th batch major in
Supply chain management to submit the thesis paper on” factors affecting inventory
management system in FMCG” This report is an integral part of our academic courses in
completion of the MBA Professional program which has given us the opportunity to learn about
organizational culture and how it affects a company’s innovative management. Thank you for
helping and guiding us along the way which made it an effective learning experience otherwise
would not have been possible.

We humbly request you to accept this report for your kind evaluation.

Yours’ Obediently,

Muntakim Rahman

ID: 2123031042

MBA (Professional)

th
Major: SCM, Batch 26

2
Declaration of Authorship

This is to certify that this dissertation titled "Factors Affecting Inventory Management System
in FMCG (Fast Moving Consumer Goods) of Bangladesh." is the result of partial fulfillment
of Masters in Procurement and Supply Chain Management program, under the supervision of
Mohammed Moin uddin Reza , Associate Professor, Department of Business Administration,
Bangladesh University of Professionals (BUP) . It has not been submitted elsewhere for any
other degree or diploma.

3
Acknowledgement

Many people have made it possible for me to complete this research. I am grateful to all the
helping hands. Special thanks to the supervisor of this work, Mohammed Moin uddin Reza ,
Associate Professor, Department of Business Administration, Bangladesh University of
Professionals (BUP) for the time and efforts put in directing me on what to do. Without the
direction I could have been lost.

Thanks to all my teachers at Bangladesh University of Professionals (BUP). I appreciate the

care and courage from my friends and family. Thanks to all my friends and classmates, who
kept me smiling during my study period.

ls I would not been able to reach the goal and this report could not

been possible.

Thank You!

Muntakim Rahman.

ID: 2123031042

MBA Professional, BUP

4
Certificate of Supervision of Research

This is to certify that Muntakim Rahman has worked under my supervision in preparing the
thesis entitled “Factors affecting Inventory management system in FMCG of Bangladesh”
submitted in fulfillment of the requirement for the award of the degree of Master of Business
Administration (Professional), Bangladesh University of Professionals. This report is prepared
with sincerity and dedication carried out by Muntakim Rhman alone and to the best of my
knowledge.

Mohammed Moin uddin Reza

Assistant Professor

Department of Business Administration

Bangladesh University of Professionals

Date:

5
Abstract

The main purpose of this study is to find out the estimation factors affect inventory
management system in fast moving consumer goods sector in Bangladesh. A set of questions
were presented to random officials involved in inventory management system to collect data.
The data was qualitatively and quantitatively analyzed for final results. Based on the findings,
it can be stated that the factors indicated in this research have potential effect on the inventory
management system in fast moving consumer goods sector in Bangladesh. Handling these
factors can ensure well inventory management system.

6
Contents
CHAPTER 1 Introduction ......................................................................................................................... 9
1.1 Introduction .................................................................................................................................... 10
1.2 Background of the study ................................................................................................................. 10
1.3 Problem statement ......................................................................................................................... 11
1.4 Significance of the study ................................................................................................................. 12
1.4.1 Theoretical significance ............................................................................................................... 12
1.5. Broad question ............................................................................................................................... 12
1.5.1 Specific Question ......................................................................................................................... 13
1.6 Research Objective ......................................................................................................................... 13
1.6.1 Specific Objective ......................................................................................................................... 13
1.7 FMCG industry in Bangladesh ......................................................................................................... 13
1.8 Limitation of the study .................................................................................................................... 15
CHAPTER 2 Literature Review ............................................................................................................... 16
2. Literature Review .............................................................................................................................. 17
CHAPTER 3: Theoretical Discussion ...................................................................................................... 23
3. Theoretical Discussion ...................................................................................................................... 24
3.1 Conceptual Framework ................................................................................................................... 24
CHAPTER 4: Methodology ..................................................................................................................... 26
4. Methodology ..................................................................................................................................... 27
4.1 Research Design .............................................................................................................................. 27
4.2 Population and sample collection ................................................................................................... 28
4.3 Data collection and analysis procedure .......................................................................................... 28
4.4 Qualitative Analysis:........................................................................................................................ 29
4.4.1 Efficiency of Warehouse Operations ........................................................................................... 30
4.4.2 Safety Stock .................................................................................................................................. 31
4.4.3 Inventory Turnover ...................................................................................................................... 31
4.4.4 Lead Time ..................................................................................................................................... 32
4.4.5 Stockout ....................................................................................................................................... 33
4.4.6 Ordering & Holding Cost .............................................................................................................. 33
4.4.7 Demand Forecasting .................................................................................................................... 34
4.4.8 Technology ................................................................................................................................... 34
4.5 Quantitative Analysis ...................................................................................................................... 35
CHAPTER 5: Finding & Conclusion ........................................................................................................ 40

7
5.1 Findings ........................................................................................................................................... 41
5.2 Conclusion ....................................................................................................................................... 41
References ............................................................................................................................................ 43

List of Figures

Figure 1 10
Figure 2 11
Figure 3 20
Figure 4 25
Figure 5 29
Figure 6 30
Figure 7 31
Figure 8 32

8
CHAPTER 1 Introduction

9
1.1 Introduction
The factors affecting Inventory management system in Fast Moving Consumer Goods (FMCG)
will be covering in this thesis. Inventory management plays an important role in every business.
inventory management systems are important for businesses because they help to ensure that
the right products are available at the right time, in the right quantities. This can help businesses
to meet customer demand, increase sales and profits, and reduce costs. It helps the stocks and
limit the inaccurate data and shortage. Overall, inventory management systems can play an
important role in the success of a business by helping to optimize the inventory levels, improve
customer service, and increase efficiency, which will ultimately lead to an increase in profit.
In this paper the factors that affect the most in inventory management system will be identified
and discussed with relative analysis and hypothesis After finishing the study. This paper may
help effectively managing inventory system with help of finding proper factors and their best
use,

1.2 Background of the study

Raw materials, supplies, work in progress (WIP), and finished stock that are preserved or held
for usage as needed are referred to as inventory (Lysons K, Gillingham M, 2003). Commodities
that are used to make the final product, such as steel and wood, are known as raw materials.
Supplies include things like Maintenance, Repair, and Operating (MRO) inventory that are
used as supporting elements during the manufacturing process but do not end up in the finished
product. Work-in-progress materials are ones that have been partially invented but have not yet
been completed. Finished goods are completed products that are ready to be used and shipped.

Making decisions on how to handle inventory in an organization, including what activities to

carry out, what Inventory management (IM) policies to follow, and what inventory handling
processes to follow, is crucial for ensuring that there is always an adequate supply of each item
in the warehouse (Tasmin,2017). Thus, the effectiveness of Inventory management (IM) has a
direct impact on the organization's current lean manufacturing system and lowers the level of
Inventory management (IM) waste. To ensure that the resources in an organization are
available is the aim of Inventory management (IM).

According to the research, employing formal Inventory management (IM) procedures is one

10
strategy to increase competitiveness by efficiently managing and decreasing inventory
investment (Narayanapillai, 2014). Although the crucial role that information management
plays in a manufacturing organization's ability to survive is acknowledged in theory, Inventory
management (IM) is typically not treated as a key issue when corporate strategies are
developed.

The administration of goods and information along the full supply chain, from suppliers to
producers, distributors, retailers, and customers, is the focus of supply chain management.
Over the last few decades, academics have focused a lot of attention on how inventory affects
supply chain management (SCM). Three key concerns have received most of the attention in
supply chain management research. The first concern is the way information flows; the
second is Inventory management (IM); and the third is focused on planning and operations
management. The second problem, namely Inventory management (IM), will be covered in
this essay. The author will describe the steps involved in classifying inventory and explain
how supply chain factors affect inventory. In this article, a perspective on the whole inventory
system of Transcom Beverages Ltd, Gazipur, Dhaka branch is collected by interview and
questionnaire.

This document displays their ordering cost, general demand, EOQ, and ROL.
It is clear from this instance that there is a sizable disparity between the safety stock and
ROL. One of the main problems with this Inventory management (IM) system is this.
Additionally, advice is supplied regarding the element that affects their inventory system.

1.3 Problem statement

Inventory might include raw materials, currency, completed commodities, and so on. Inventory
management (IM) that is effective will improve the supply chain, eliminate cash flow, and limit
the chance of inventory shortages caused by fluctuating orders. As a result, optimizing
Inventory management (IM) is critical to meeting the organization's strategy aim. The bullwhip
effect, as described by Lee et al. (1997), is a common phenomenon in supply chains: demand
variability rises as one moves up the supply chain. This erroneous information can cause
inefficiencies across the supply chain, such as excessive inventory investment, poor customer
service, lost profits, mistaken capacity projections, inefficient transportation, and missed
production schedules (Lee et al., 1997a).

11
1.4 Significance of the study
Inventory management (IM) is a critical component of most organizations. Long-term
profitability may suffer if a competent management system is not in place, as more
inefficiencies are likely to arise. The following are some of the most prevalent inefficiencies
induced by poor inventory management (IM):

• Incorrect quantities
• Inaccurate item identification
• Inability to efficiently fulfill orders
• Improper use of spreadsheets to manage inventory

Resulting in errors Unfortunately, many Bangladeshi businesses and organizations are

unaware of this. My research aims to identify the elements that influence Inventory
management (IM) systems in FMCG organizations.

1.4.1 Theoretical significance

The significance of this research is demonstrated, along with a reason for why it is vital to do
research in the field of Inventory management (IM). Because it contains a working technique
for being effective in Inventory management (IM), this study is both theoretically and
practically useful. According to Inventory management (IM) optimization, production
managers may simply coordinate other departments in order to optimize supply chain and
increase firm competition.

1.5. Broad question

• What is the organization's current operational method for its Inventory
management (IM) system?

12
 • What are the challenges with the present Inventory management (IM) system?
• What elements have an impact on the Inventory management (IM) system?

1.5.1 Specific Question

• How they are keeping the stocks is the stocks?
• Which inventory keeping system are they using is it manually operated of they are
using any type of EPR or SAP?

1.6 Research Objective

This part of the paper answers the question why this research is done. The main objective of
the research is to identify the factors that affect the inventory management system in fast
moving consumer goods sector and how influential are they in case of managing inventory of
any organization. There will be two types of questions answered in this paper

1.6.1 Specific Objective

● How the organization is currently operating their Inventory management (IM) system?

● What types of problems they are facing when they are controlling their inventory?

● Which factors are impacting the Inventory management (IM) system when they are
controlling their Inventory management (IM) system?

1.7 FMCG industry in Bangladesh

In Bangladesh, the FMCG business is divided into three key categories: food and beverage,
personal care, and household care. Milk and dairy goods, biscuits and bakery items, frozen
meals, ice cream, tea, coffee, baby foods, soft drinks, cigarettes, and other food products are
all included in the Foods and Beverage Industry. Personal Care business, on the other hand,
covers items used for personal care such as perfume, cosmetics, toiletries, and other related
products. Household products include items used to maintain the home, such as cleaning and

13
decorating. Room smells or sprays, detergent powder, liquid detergent, soap noodles, and
other similar goods are included.

Food & Personal Household

Beverage Care Care

Figure 1: Consumer Products of Bangladesh

Consumer products are finished goods and services that are consumed by households and are
not utilized in the creation of other commodities and services. Private Consumption or
Household Consumption is the term used to describe the consumption of certain products and
services. Fast Moving Consumer Goods (FMCG) are items that are sold quickly and at a
relatively cheap cost. FMCGs include packaged meals, beverages, toiletries, over-the-counter
medications, and related products. FMCGs often have a limited shelf life. Meat, fruits and
vegetables, dairy products, and baked goods are examples of FMCGs that are very perishable.

Other goods with high turnover rates include toiletries, packaged meals, soft beverages, and
household supplies. Although the revenue margin for FMCGs is very low, these items are
often sold in large quantities to generate significant aggregate earnings. FMCGs are often
regarded as the most quintessential example of a low-margin, high-volume industry.
Consumer goods are also categorized as Slow-Moving Consumer Goods based on how
quickly they are sold to clients (SMCG). SMCGs are items with a useful life of more than a
year, such as household appliances, furniture, and home improvement supplies. These items
have a slower sales frequency and do not circulate as rapidly as FMCGs. The FMCG business
is one of the market's fastest expanding categories. Bangladesh had a population of 164.67
million people at the end of 2017. Because of the country's enormous population, the FMCGs
business is quite promising. Private consumption growth has grown in tandem with GDP

14
growth throughout the years. GDP growth in FY 2016-17 was 7.28% compared to 7.11% in
FY 2015-16, while private consumption growth in FY 2016-17 was 10.3% compared to 9.1%
in FY 2015-16.

Figure 2: Characteristics of Fast-Moving Consumer Goods (FMCGs)

1.8 Limitation of the study

The investigation will be conducted from the standpoint of the supply chain; however, the
study area will be constrained to the factors affecting the Inventory management (IM) system

Characteristics of
FMCGs

Consumer's Producer's
Angle Angle

Frequent Low Extensive

Purchase Involvement Low Price High
Low Margin Distribution
High Stock
Volumes Turnover
Networks

in FMCG organization in Bangladesh. Most of the FMCG organization does not have a
specific process for calculating inventory. This indicates a lack of information collecting.
However, the author might provide diverse inspiration to other researchers based on
hermeneutic scientific approach.

15
CHAPTER 2 Literature Review

16
2. Literature Review
Planning is one of the crucial components for achieving effective inventory control, according
to Jonsson and Mattsson (2008). Planning can also be referred to as a strategy for the future
that is used to manage the inventory. Planning for inventory control helps organize physical
count requirements to cover setup for spread sheets used to assess stocks at year's end.
According to Jonsson and Mattsson (2014), the approach for controlling and managing
inventory includes forecasting market demand, creating a plan for maintaining a safety quantity
of supplies, establishing reorder points, and managing stock levels within an organization. The
likelihood of failing to estimate the inventory required in the future market demands and other
requirements will increase without the coordination of sellers in inventory planning, which has
an impact on IM practices as well.

The study by Ondari and Muturi (2016) found that bureaucracy has a number of benefits,
including eliminating redundant or conflicting jobs or duties and predictable system behavior.
As a result, the study's findings suggest that the efficiency and effectiveness of Inventory
management (IM) practices among small and medium-sized enterprises were positively
impacted by bureaucratic procurement procedures, documentation, funding, and staff skills.
According to Tasmin & Chan's (2017) research, the challenges that manufacturing
organizations encounter with Inventory management (IM) include underproduction,
overproduction, stockout situations, delays in the delivery of raw materials, and discrepancies
in records. In manufacturing small and medium-sized businesses, the factors planning,
knowledge of employees, and staff expertise have all been found to considerably influence the
performance of Inventory management (IM), whereas funds have only barely showed a
significant impact.

The study, which is grounded in structural theory, aims to ascertain how information
technology affects efficient shop management. Anthony Giddens initially put out structural
theory in his 1984 book Constitution of Society, which tried to bridge the gap between social
systems and the micro/macro viewpoints of organizational structure. In order to propose AST
and the development of group decision support systems, De Sanctis and Poole (1994) took
inspiration from Giddens. The AST model focuses on the social structures, rules, and resources
made available by information technologies as the foundation for human activity and describes

17
the connection between developing information technologies, social structures, and human
interaction. Operations research describes the theory of inventory and production as a
specialization. It is also known as the mathematical theory of inventory and production (Hillier
& Lieberman, 2001). The theory is focused with the creation and deployment of productive
inventory and production systems that will minimize institutional costs. In this regard, the
theory investigates the logistics, manufacturing, production, supply chain, and storage
operations of organizations. Hillier and Lieberman claim that (2001), The actions listed below
should be followed by institutions in order to have a successful Inventory management (IM)
system: To replenish existing inventory levels, one must first (1) develop a mathematical model
that describes the behavior of inventory, design and adopt an optimal inventory policy in light
of the firm's mathematical model, create a computerized information processing system that
will provide information on current inventory levels, and use the information on current
inventory levels to apply the optimal inventory policy. The theory of inventory and production
also considers and employs the following metrics: revenues, holding costs, shortage costs,
ordering costs, and shortage costs.

Susan & Michael (2000) claim that accurate inventory records are required to satisfy
customers, identify when to restock certain items, make sure that material supply keeps up with
demand for repairs or projects, analyze inventory levels, and get rid of extra inventory.
According to Bailey and Farmer (1982), stock recording is supposed to keep daily details of
each individual item housed in the storehouse's receipts, issues, and stock balances. Stock
records, according to Susan & Michael (2003), give management the knowledge needed to
assure accountability through stocktaking and stock audit exercises. Records can be posted
manually, although Jessop and Morrison (1994) claim that mechanical procedures are
frequently more efficient in situations where the volume and complexity of the documents
handled is significant. When compared to computer posting systems, manual posting is
significantly slower, has a higher risk of incorrect information being entered, and is more likely
to be misplaced or lost as a result of many handlings. While an organization may struggle to
carry out its operations with little funding, it can carry out its operations efficiently and
successfully with sufficient funding (Carter & Price, 1993). Funds might be a barrier to
efficient inventory control, say Dobler and Burt (2006), if they aren't enough to cover all of the
organization's material needs over the budgetary period. Burton (1981) claims that frequent
price changes and the variability of consumer demand patterns are additional variables that
may have an impact on how funds are allocated. The status of financial management inside an

18
organization can have a negative impact on the efficiency and use of financial resources across
a range of operations. Even though this required redundancy, several authorities choose to leave
posts open instead of taking this action. Since most institutions employ clerks instead than
specialists, the loss of staff has had an impact on the specific services.

Control is no longer viewed as a routine administrative task carried out unsupervised by

inexperienced personnel within a governmental organization. When performing their various
responsibilities, competent and skilled workers will be efficient and successful, assisting the
firm in achieving its aims and objectives. Qualification is thus a prerequisite for an
organization's success and must be linked with work requirements, necessitating the hiring and
development of ambitious employees.

Inventory control will be unsuccessful if the staff members responsible for it are unqualified
and incompetent. According to Bailey and Farmer (1982), developing staff who have the
capacity and motivation to perform better is required for stock control function to attain
outstanding performance. According to Carter and Price (1993), staff training is essential if
their skills and abilities are to be fully utilized. According to Coe (1989), it's crucial to make
sure that the organization has access to enough people of the right caliber in order for it to
achieve its goals. Employee incompetence can make stock control practically useless.
According to Schroeder (2000), storing inventories might be done for transactional,
preventative, or speculative reasons. According to Lyson (1996), inventory acts as insurance
against unforeseen breakthroughs, delays, and other disturbances that could impair continuing
operations. Poor record-keeping, cumbersome process, and inadequate money are some of the
problems that prevent effective inventory control, according to the research. Stock symbolizes
money, according to Dobler and Burt (2006), and should be subject to the same controls as
currency. A strong stock record system is crucial because it helps avoid stock outs,
overstocking, degradation, obsolescence, and high carrying costs. Therefore, having a reliable
shops record system is essential for making purchasing decisions. An organization needs
accurate stock records if it wants to run effectively and provide top-notch services. Posting late
has negative consequences.

One may anticipate that managers looking to obtain a competitive advantage through inventory
control would turn to the seemingly endless stream of research linked to inventory theory as a
valuable resource. However, some have argued that managers who look to the research in
inventory theory may find it to be of little value or that it offers nothing in the way of improving

19
inventory methods (Krautter, 2009). (Wagner, 2002). Many have concluded as a result that
there is a discrepancy between inventory theory and practice (Lenard & Roy, 1995; Silver,
1981; Wagner, 2002; Zanakis et al., 1980). Although the many approaches to close this gap
constitute worthwhile research, there is relatively little input from practitioners (Patton &
Steele, 1990). Consequently, a research agenda based on problems reported by practitioners is
required (Vigoroso, 2005). The study aims to fill any gaps since no extensive research has been
done on the variables impacting inventory efficiency.

Previous studies, according to Esther (Esther, U. U. 2012) and Othman (Othman, N. N. 2015),
have identified the typical Inventory management (IM) challenges experienced by the
organization as underproduction, overproduction, stock out scenario, delay in supply of raw
materials, and inventory discrepancy. Underproduction, according to Waters (Waters, D.
2003), occurs when the production rate is lower than the market demand and each unit of
completely created items that arrives at the warehouse is transferred to the clients promptly,
resulting in minimal or no safety stockpiles in the warehouse. If safety inventories are
inadequate to fulfill market needs, underproduction may result in a stock out crisis. As a
result, client satisfaction may suffer, resulting in a loss of revenues. Muller (Muller, M. 2011)
defines overproduction as when a business produces more inventory than is required or
needed, wasting money, storage space, efforts, and resources, among other things. Waters
(Waters, D. 2003) also suggested that overproduction occurs when the rate of production
exceeds market demand and the majority of inventory is held in the warehouse. When
inventories are held in a warehouse, it suggests that a large quantity of money is tied down
with the goods. In other words, having too much inventory in the warehouse will limit an
organization's resources. The Toyota Organization has stated that one of the most common
wastes in the organization is overproduction. Waters (Waters, D. 2003) emphasized that
overproduction results in a large level of completed items accumulating in storage, whereas
poor procurement results in a high level of raw materials held in storage, resulting in
widespread waste throughout the business.

According to Mazanai (Mazanai, M. 2012), the most prevalent difficulty encountered by the
majority of firms is stock out, which has a significant influence on the level of customer
expectation and leads to the organization's poor performance. As Waters (Waters, D. 2003)
noted, when there is a lack of inventories, some clients will not be ready to wait for
back-orders to arrive, resulting in a loss of revenue for the organization. According to Kamau

20
and Kagiri (Kamau, L., & Kagiri, A. 2015), the most difficult challenge in an organization is
managing the proper number of inventories, although businesses have endeavored to prevent
accumulated inventory since superfluous purchased or created inventory may boost the total
facility cost. Esther (Esther, U. U. 2012) added that a stock out issue will result in
manufacturing delays, idle personnel, idle equipment, and unexpected supply orders at the
warehouse or retail production, resulting in lost sales and consumer unhappiness. Waters
(Waters, D. 2003), on the other hand, has clarified the causes of raw material delivery delays.
The time required for a provider to receive, process, and arrange delivery is sometimes
excessive. The resources may be sent to the organization within a few hours from local
suppliers and within a few days from overseas providers. It might take many months to get
imported raw materials with a convoluted distribution mechanism. As a result, the delay in
raw material delivery will disrupt the manufacturing process.

According to Muller (Muller, M. 2011), the most serious issue with yearly inventory data is
inconsistency. Stocktaking is used to ascertain the actual quantity of merchandise stored in
storage as well as the inventory record (Waters, D. 2003). According to Waters (Waters, D.
2003), essential inventory discrepancies should not exceed 0.2%, whereas other inventory
inconsistencies should not exceed 1% in inventory levels. According to Kamau and Kagiri
(Kamau, L., & Kagiri, A. 2015), inventory discrepancy has also been shown to have an
influence on the organization's competitiveness and profitability. Waters (Waters, D. 2003)
described a typical case in which inventory records deviate from the actual quantity on hand,
resulting in inadequate raw materials for the manufacturing line.

According to previous studies, the aspects that will impact the efficacy of Inventory
management (IM) include inventory control planning, documentation/store records, personnel
knowledge and abilities, and money. As a result, these four parameters were chosen to meet
the goal of this research. The efficacy of Inventory management (IM) is to supplement
organizational processes to ensure the seamless flow of resources, services, and goods
(Chalotra, V. 2013). Planning is an important aspect of sustaining good Inventory
management (IM). Jonsson and Mattsson (Jonsson, P., & Mattsson, S. A. 2008) define
planning as the process used to regulate and manage inventory in an organization, such as
forecasting market demand, making a strategy for maintaining the safety quantity of goods,

setting reorder points, and managing stock levels. Without seller collaboration in inventory
planning, the likelihood of failing to estimate inventory requirements in future market needs

21
increases (Gupta, D. P., Gopalakrishnan, B., Chaudhari, S. A., & Jalali, S. 2011).
Inventory record inaccuracy is one of the unsolved problems faced by the manufacturing
organization and has a powerful side effect on an organization's performance, such as
rescheduling the operation schedule, generating sales loss, penalty, suboptimal planning, and
extra expenses for using transport vehicles (Cannella, S., Framinan, J. M., Bruccoleri, M.,
Barbosa-Povoa, A. P., & Relvas, S. 2015). According to Othman (Othman, N. N. 2015), most
firms hire unqualified individuals to manage their inventory. Typically, these individuals lack
knowledge, have insufficient training, or are uninterested in their jobs. These instances will
interrupt an organization's operating process, such as spending a lot of time hunting down
stock that has been stored in the wrong place or has an erroneous inventory record. As a
result, qualified staff and appropriate Inventory management (IM) are required for the
manufacturing organization's performance. Furthermore, as Carter and Price (Carter, R. J., &
Price, P. 1993) observed, if there are insufficient money, the organization's activities would be
hampered. Dobler, Burt, and Lee (Dobler, D. W., Burt, D. N., & Lee, L. 1996) have said that
money is a limiting factor in the efficacy of Inventory management (IM) if they are not
effectively allocated to all of the organization's operations.

22
CHAPTER 3: Theoretical Discussion

23
 3. Theoretical Discussion
Inventory management is engaged with multiple factors. It depends on how those factors are
handled. Among them, financial factors, suppliers, lead time, product demand, economies of
scale (EOQ) and many more.

3.1 Conceptual Framework

The study will be conducted using the following framework.

Identifying Main
Dimensions
Literature
Review

Identifying Criteria

Selecting Criteria for

Expert Opinion
Analysis

Determining Relative
Weight

AHP Pareto Analysis

Create a Hierarchy

Figure 3: Conceptual Framework

24
To conduct this thesis there are 3 hypotheses are made, they are:

Hypothesis 1: The factors do not have any affect on the inventory management system.

Hypothesis 2: The factors affect the inventory management system but it is not necessary to
manage those factors to get effective inventory management system.

Hypothesis 3: the factors are important and they need to be managed well in to maintain an
effective inventory management system.

What factors affect the inventory management system of an organization will be identified and
measured in this paper. Among all the major factors that affects the inventory management
system will be discussed. How the factors affect the inventory management system will also
be stated in this thesis paper. While managing the inventory how the factors should be treated
and managed throughout the whole inventory management process will be discussed in this
paper. To do so, the factors affecting inventory management system will be identified both
qualitative and quantitative method. The thesis will be prepared in multi-criteria decision
making (MCDM) process. The method is ideal for any research where various criteria
influences any decision-making process. In this case there are various factors affecting one
decision making that is the inventory management. The criteria will be selected by going
through existing literatures. The literatures will be referred at the end of the thesis. The main
dimension of the thesis will be selected from literature review. The factors affecting inventory
management system will also be selected by literature reviews. From the literature reviews the
factors will be selected which concerns the most in Fast Moving Consumer Goods (FMCG) in
Bangladesh’s perspective. Then the criteria fit the most will be selected through expert opinion
made from questionnaire. For determination of relative weight of different criteria will be done
by using Analytical Hierarchy Process (AHP) method. Pareto analysis will be done with the
factors to see their affects. A hierarchy will be created using the results of pareto analysis.

25
CHAPTER 4: Methodology

26
4. Methodology
Both Qualitative and quantitative method will be used in this thesis. Qualitative research
method will be used to collect the data in the thesis. As used by Welman, Kruger & Mithchell
[34] quantitative method refers to descriptive survey design method where data is collected
from real-life observations and solve research questions. It is used to understand concepts and
thoughts of the research. It helps to find in-depth analysis of the topic and its solution.

On the other hand, quantitative method will also be used for the thesis as the outcome of the
qualitative analysis may fluctuate from structural data analysis. Quantitative research method
is the method of research that includes numbers and graphs. It is done to confirm or test any
theory or hypothesis. It can be used for research related to facts or generalized factors. For
quantitative method pareto analysis by Aman Powell & Tanya Sammut [35] will be used in
this thesis. Pareto analysis is the decision-making process that separates given factors in the
analysis. It is applied in various applications mostly in economic and business decision making
process. The outcome of the analysis will be pareto efficiency.

4.1 Research Design

The paper will identify the factors that affecting Inventory management (IM) system in fast
moving consumable goods organizations in Bangladesh. The study will be descriptive in design
in the sense that it will describe the factors that affecting Inventory management (IM) system
and also their degree of association in the fast-moving consumable goods organizations in
Bangladesh. The methodology will integrate a quantitative and qualitative approach which will
be formulating multi-criteria decision making (MCDM) using the analytic hierarchy process
(AHP) to evaluate the priorities of these criteria. The AHP technique includes three
fundamental principles. The first one is to create a hierarchical framework, the second one is
to evaluate similar tasks or factors and the third one is to combine the priorities in the context
of Inventory management (IM) system in the fast-moving consumable goods organizations in
Bangladesh.

27
4.2 Population and sample collection
As the study will be on identifying the that affecting Inventory management (IM) system in
fast moving consumable goods organizations in Bangladesh, the population of the study will
be all the people involved in decision making on the supplier selection and monitoring process
in all the fast-moving consumable goods organizations in Bangladesh, which may include
supply chain management professionals and also the top management of the factories.

The sample of the study will consist of a total of 50 supply chain professionals employed in
different FMCG companies located in different regions of Bangladesh. The non-probability
sampling procedure will be used for selecting the participants in this study as the selection
will not be random. As the time frame for the research will be very short, the study will use
the convenience sampling method, meaning data will only be collected data from the available
employees who will respond to the questionnaire.

The factors will be identified from the questionnaire including questions about inventory
management system, technological infrastructure of the organization, employee training
facilities, inventory turnover calculation method, inventory section recruitment system, why
they recruit employees in the inventory section, how satisfied are they with their own inventory
management system, what problem they faced in the inventory management process and how
they overcome it, which factors should be prioritized in case of inventory management system,
what government rules and regulations they face while maintaining inventory. These questions
should give a clean look of the factors that affect the inventory management system in fast
moving consumer goods sector in Bangladesh.

4.3 Data collection and analysis procedure

In this project, data will be collected using both qualitative and quantitative methods, as well
as primary and secondary sources. Primary sources will include a structured questionnaire
survey and conversations with industry experts. The questionnaire will be circulated by e-mail,
but hard copies will be provided upon request. Participants will have two days to react, with
replies being entered online. The printed copies will be gathered by hand.

Relevant recognized journals, books, and newspaper articles will be used as secondary sources.
The first journal papers will be gathered from Google Scholar using the keywords 'factors,'
'inventory accuracy,' warehousing, distribution, monitoring, supply chain, performance, and

28
assessment.' Additional articles will be chosen from the first articles' reference section. The
major dimension and any relevant criteria will be identified during the first phase of the
investigation. In this case, the research will first perform qualitative investigations before
refining the criteria by reviewing relevant literature. The criteria that appear the most frequently
in these articles will be chosen. The study will look at policies and practices utilized in previous
research as well as expert opinions from industry professionals to narrow down criteria that are
critical to take into consideration what are the elements impacting Inventory management (IM)
system. The study's second phase will involve defining weights for storage, regulating, and
monitoring dimensions and criteria. The AHP approach will be used to do a pair-wise
evaluation of the criteria in the research. Because the study involves context elements
influencing Inventory management (IM) systems, respondents will be requested to compare
each criterion for both scenarios pair-wise. In the last step of the study, a pareto analysis will
be used to discover the primary factors influencing the Inventory management (IM) system in
FMCG.

4.4 Qualitative Analysis:

The first objective of the thesis was to identify the factors affecting the inventory management
system in fast moving consumer goods sector in Bangladesh. After qualitative analysis from
the provided questionnaire and personal visiting experience the results indicates that majority
of the respondents from supply chain of various organizations has indicated these factors
affecting the inventory management system in fast moving consumer goods industry:

• Efficiency of Warehouse Operations

• Safety Stock

• Inventory Turnover

• Lead Time

• Stock-outs

• Technology

• Ordering & Holding Cost

29
 • Demand Forecasting

There were many more factors but these 8 are the most relevant to the inventory management
system of fast-moving consumer goods sector in Bangladesh.

Factors Af f ecti n g In ven tory Man agemen t S ystem

20
E FFIC IE NC Y OF WAR E HOUSE OPE R ATIONS

16
SAFFETY STOCK

13
INVE NTOR Y TUR NOVE R

10
LE AD TIM E

STOCK-OUTS

9
OR DE R ING & HOLDING C OST

8
TECHNOLOGY

8
DE M AND FOR C ASTIN G

Figure 4: Factors affecting Inventory Management System in Fast Moving Consumer Goods
(FMCG) Sector in Bangladesh

4.4.1 Efficiency of Warehouse Operations

The efficiency of warehouse operations in an inventory management system refers to the

effectiveness of the processes and procedures used to store, manage, and distribute inventory.
This includes everything from receiving and storing new inventory to picking and packing
orders for shipment. In an inventory management system, efficient warehouse operations are
critical for several reasons, such as, reducing costs, improving customer service, reducing
errors,

To improve the efficiency of warehouse operations in an inventory management system,

companies can use several strategies such as:

i. Implementing an inventory management system: which can help to monitor inventory

levels in real-time and automate processes such as reordering and replenishment.
ii. Implementing barcode scanning or RFID technology: To increase accuracy and
efficiency in receiving, storing and picking items.

30
 iii. Implementing a warehouse management system (WMS): which can help to automate
and optimize warehouse operations, such as inventory tracking, receiving and shipping,
and order fulfillment.
iv. Implementing a cross-docking strategy: which can help to reduce inventory holding
costs and improve delivery times.
v. Regularly reviewing and optimizing warehouse layout: To improve the flow of
products, reduce travel time and minimize errors.

By improving the efficiency of warehouse operations, companies can improve the overall
performance and efficiency of their inventory management system, and ultimately increase
profitability

4.4.2 Safety Stock

Safety stock, also known as buffer stock, is the extra inventory that an organization keeps on
hand to mitigate the risk of stockouts. In an inventory management system, safety stock is used
to ensure that products are always available to meet customer demand, even if there are
unexpected delays in receiving new inventory or changes in demand.

Safety stock is determined by analyzing a variety of factors, including lead time, demand
forecast, and variability in demand. The goal is to find the optimal level of safety stock that
will ensure that products are always available without keeping so much inventory that it
becomes a financial burden for the organization.

In an inventory management system, safety stock is an essential part of ensuring that products
are always available to meet customer demand and prevent stockouts, which can lead to lost
sales and damage to customer relationships. It's important to review and adjust safety stock
levels regularly as demand patterns and lead times can change over time.

4.4.3 Inventory Turnover

Inventory turnover, also known as stock turnover or inventory turns, is a metric that measures
how quickly an organization is selling and replacing its inventory. In an inventory management

31
system, inventory turnover is used to determine the efficiency of inventory management and
assess the overall health of an organization's inventory.

The inventory turnover ratio is calculated by dividing the cost of goods sold (COGS) by the
average inventory for a specific period. A higher turnover ratio indicates that an organization
is selling its inventory quickly and efficiently. A lower turnover ratio suggests that an
organization may have too much inventory on hand, which can lead to higher holding costs
and lower profitability.

In an inventory management system, inventory turnover is used to identify inventory-related

issues and opportunities for improvement. A high turnover ratio could indicate that a product
is in high demand, while a low turnover ratio could indicate that a product is not selling well.

By monitoring and analyzing inventory turnover, organizations can make better-informed

decisions about inventory management, such as adjusting reorder points, safety stock levels,
and production schedules, to improve efficiency and profitability.

4.4.4 Lead Time

Lead time in an inventory management system refers to the amount of time it takes for a product
to be ordered, received, and made available for sale or use. This includes the time from when
the order is placed with the supplier to when the product is received at the warehouse or store,
and any additional time required for processing or quality control.

Lead time is an important consideration in inventory management because it affects how much
inventory an organization needs to keep on hand to meet customer demand. If lead time is long,
the organization will need to maintain a higher level of safety stock to ensure that products are
always available when customers want to purchase them. On the other hand, if lead time is
short, the organization can keep less inventory on hand and still meet customer demand.

In an inventory management system, lead time is used to determine the optimal inventory
levels, reorder points, and safety stock levels. This helps companies to avoid stockouts and
overstocking, which can lead to wasted resources, lost sales and damage to customer

32
relationships. lead time can be affected by several factors including, production time, shipping
time. customs clearance and other logistics, quality control.

4.4.5 Stockout

A stockout, also known as a stock shortage or stock-out, is a situation in which a product is not
available for sale or use because it is out of stock. In an inventory management system,
stockouts can occur when demand for a product exceeds the amount of inventory that is
currently available. Stockouts can have significant negative consequences for a company, such
as, lost sales, damage to customer relationships, increased holding costs.

Stockouts are a common problem and influencing factor in inventory management. By using
the right strategies, companies can minimize their occurrence

4.4.6 Ordering & Holding Cost

Holding cost, also known as carrying cost, is the cost associated with storing and maintaining
inventory in an inventory management system. These costs can include things such as
warehouse rental, utilities, insurance, taxes, labor, and the cost of capital tied up in inventory.

Holding costs are an important consideration in inventory management because they can have
a significant impact on the overall cost of inventory. In an inventory management system,
holding costs are used to determine the optimal inventory levels, reorder points, and safety
stock levels.

Holding costs are typically calculated as a percentage of the inventory value and are affected
by several factors such as: the cost of warehouse or storage space, insurance and taxes, the cost
of labor required to handle and maintain inventory, the cost of capital tied up in inventory, the
cost of inventory management software, if used, the cost of security and surveillance, the cost
of any inventory-related technology

In an inventory management system, holding costs are used to balance the cost of storing
inventory with the benefits of having products available to meet customer demand. By
minimizing holding costs, companies can improve their bottom line and increase profitability.

33
It's important to keep in mind that holding costs are not constant and can change over time and
it's important to review and adjust them regularly.

4.4.7 Demand Forecasting

Demand forecasting in an inventory management system is the process of estimating the future
demand for a product or service in order to plan and manage inventory effectively. It involves
predicting how much of a product will be sold or used over a certain period of time and is used
to determine how much inventory to stock, when to order more, and when to make production
runs.

Demand forecasting is an essential part of inventory management, as it helps companies to

avoid stockouts and overstocking, which can lead to wasted resources, lost sales and damage
to customer relationships.

In an inventory management system, demand forecasting is typically integrated into the overall
inventory management process. This means that the demand forecast is used to set inventory
levels, reorder points, and safety stock levels. Companies may use forecasting software, which
can be integrated into their inventory management system, to automate the forecasting process
and provide real-time demand predictions.

It's important to note that demand forecasting is not a one-time process, but rather an ongoing
effort to adapt to changes in the market and in the organization's operations.

By understanding lead time, companies can plan their production and purchase schedule
accordingly, to minimize the wait time for customers and improve the overall efficiency of the
inventory management system.

4.4.8 Technology

Technology can be a significant factor in the effectiveness and efficiency of an inventory

management system. Some of the key ways that technology can impact inventory management
include:

34
 i. Automation: Technology can automate various inventory management processes, such
as tracking inventory levels, generating purchase orders, and reordering products when
stock is low. This can reduce the need for manual input and minimize the risk of errors.
ii. Real-time visibility: Technology can provide real-time visibility into inventory levels,
enabling companies to quickly identify and address stockouts, overstocking, and other
inventory-related issues.
iii. Data analysis: Technology can help to collect and analyze data on inventory levels,
sales, and other relevant metrics. This data can be used to generate forecasts, identify
trends, and make more informed inventory management decisions.
iv. Inventory optimization: Technology can help to optimize inventory levels, reorder
points, and safety stock levels, based on demand forecast and other relevant factors,
which can help to reduce holding costs and improve overall efficiency.
v. Supply chain integration: Technology can be used to integrate inventory management
systems with other supply chain systems, such as transportation management systems,
and warehouse management systems, which can help to optimize the flow of goods and
improve collaboration with suppliers and customers.
vi. Mobile access: Technology allows managers to access and manage inventory
information remotely, via mobile devices.
vii. RFID tagging, barcode scanning and other identification technologies: They can help
to track inventory in real-time, reducing errors and increasing accuracy, as well as
speeding up warehouse operations.

By leveraging technology, companies can improve the overall performance and efficiency of
their inventory management system, and ultimately increase profitability

4.5 Quantitative Analysis

The analysis will be done in Analytical Hierarchy Process (AHP) which includes Pareto
Analysis. The operation, planning and controlling inventory has connection with effective and
efficient allocation of resources. This includes some factors that may affect the management
process. Pareto Analysis has been an effective tool for these applications. Pareto analysis is a
tool used in quality control and project management to identify the factors that are most critical
to an overall system or process. It is based on the Pareto principle, which states that a small
number of causes (typically 20%) are responsible for a large portion (typically 80%) of the

35
effects in any given system. Pareto analysis is named after an Italian economist Vilfredo Pareto.
It is often used to identify the "vital few" factors that have the greatest impact on a process, and
to prioritize efforts to improve that process. The technique involves collecting data on the
various factors that contribute to the process, and then analyzing that data to determine which
factors have the greatest impact. The results of a Pareto analysis can be used to guide decision-
making. In case of conducting Pareto Analysis these steps are followed in this research:

• Step 1: Identifying the list of factors affecting inventory management system in fast
moving consumer goods sector in Bangladesh from the qualitative research and
questionnaire. From the population among 50 questionnaire the managers respond to
factors that affect the most in their inventory management system. From the responses the
list below is made:

QUESTIONNAIRE RESPONSE
Response

E FFIC IE NC Y OF WAR E HOUSE OPE R ATIONS 20

SAFFETY STOCK 16
INVE NTOR Y TUR NOVE R 13
LE AD TIM E 10
STOCK-OUTS 9
OR DE R ING & HOLDING C OST 8
TECHNOLOGY 8
DE M AND FOR C ASTIN G 7

Figure 5: Questionnaire response count

• Step 2: Identifying root affect each factor individually plays in inventory management
system for fast moving consumer goods sector. There are a number of problems arises by
not maintaining the factors above. In case of warehouse efficient operations, the inventory
may not be managed properly if the warehouse operations are effective. On the other hand,
if the safety stock is not maintained the inventory management will become useless. The
main reason behind inventory management system is to maintain the inventory in a manner
that it does not waste investments as well as keeps the production or sale in flow. So, the
safety stock must be maintained accordingly. The next factor inventory turnover plays a
vital role in inventory management system as the inventory turnover rate forecasts when

36
 to buy new materials and products. The turnover rate should always be followed. The lead
time is also important in case of inventory management system. The more the time it takes
to produce or sale a product the more the time a inventory has to hold. The inventory
should be hold according to the lead time. Stockout is a situation the inventory manager
will never want to be in. Stockout happens because of because of poor inventory
management. The inventory management system should be developed while keeping in
mind about the stockout situation. While maintaining a good inventory management
system the ordering and holding cost of the inventory plays a viral factor. Because the
inventory management system is developed to prevent high cost of inventory management
as well as inactive stock. Demand forecasting plays a divine role in inventory management
system. It helps to keep the inventory well managed as the demand for material or product
changes time to time, good demand forecasting helps to keep the inventory well managed.
Technologies has its perks in each and every aspect of business. Inventory management
system is no different than others. Using technologically advanced processes and software
helps to keep the inventory up to date and well managed.

• Step 3: Scoring each factor individually according to the responses from the questionnaire.
The weight of the factors done according to the responses from the managers. The
maximum responded factor is Efficiency of warehouse operations and minimum
responded factor is demand forecasting. Other factors got relative responses which is
provided below:

Factors Response

Demand Forecasting 7

Technology 8

Ordering & Holding Cost 8

Stock-outs 9

Lead Time 10

37
 Inventory Turnover 13

Safety Stock 16

Efficiency of Warehouse Operations 20

Figure 6: The response of factors according to the questionnaire analysis.

• Step 4: Ranking each factors using their score. The factors are ranked according to their
responses where efficiency of warehouse operations scoring 21.98% rating the maximum
and Demand Forecasting rated 7.96% the minimum. The score of these factors is:

Factors Response Score

Demand Forecasting 7 7.69%

Technology 8 8.79%

Ordering & Holding Cost 8 8.79%

Stock-outs 9 9.89%

Lead Time 10 10.99%

Inventory Turnover 13 14.29%

Safety Stock 16 17.58%

Efficiency of Warehouse Operations 20 21.98%

Figure 7: Score of factors from the questionnaire analysis.

• Step 5: Creating a diagram with Pareto Analysis. From the score we can rank the factors
from most affective to less affective. The effectiveness of the factors can be shown with a
Pareto diagram.

38
Figure 8: Pareto Analysis diagram.

39
CHAPTER 5: Finding & Conclusion

40
5.1 Findings
As per the analysis now we can come to evaluate our hypothesizes. Our first hypothesis was
there is no significant affect of the factors on the inventory management system. As far we
came to understand the factors play a vital role in inventory management system. So, this
hypothesis is false.
Our second hypothesis was the factors affect the inventory management system but the affect
is not significant enough to manage them accordingly. But we have come to know that the
factors need to be well managed for an effective inventory management system. So, this
hypothesis is also false.
Our third hypothesis was the factors have a significant affect on the inventory management
system. As per our qualitative and quantitative analysis. We have come to realize that the
factors have a potential role in effectively managing the inventory system. So, the third
hypothesis is correct and we can state that the factors have significant affect on inventory
management system.
From the thesis we can develop an understanding of factors that affect the inventory
management system. The factors, Demand Forecasting, Technology, Ordering & Holding
Cost, Stock-outs. Lead Time, Inventory Turnover, Safety Stock, the effectiveness of warehouse
operation being the most affective and demand forecasting being the lest affecting factor.
Efficiency of Warehouse Operations plays a vital role in inventory management system.
Inventory management is the crucial process of a business. It is affected by those factors. To
manage inventory effectively a manager should maintain the factors effectively. At the end it
can be stated that, the depth of these factors has a core relation with the inventory management
system in the fast-moving consumer goods sector.
All the research questions were answered throughout the analysis. The qualitative analysis of
the affect of specific factors have shown they have cabalistic affect on inventory management
system. On the other hand the quantitative analysis conducted through Pareto Analysis shows
that the factors have serious affect on the inventory management system though they differ in
scale or weight but they all have their significant affect. Both the methods are well enough
from practical view as well as theoretical standpoint.

5.2 Conclusion
In this paper I tried to find the factors which can affect the Inventory management (IM)
system in the fast-moving consumable goods organization. For any type of organization
inventory is a major issue and it have to control very carefully. Inventory needs to be
maintained carefully because it related to production and consumers satisfaction in this paper,
I will try to find is there any gaps between safety stock and ROL. Is the inventory being
audited time to time or not as we know cycle count of the inventory is very much important
to maintain accurate inventory data. Are the products being nearby when the product is

41
needed. The factors which if affecting the inventory will be found how the factors can be
developed.

In conclusion, an inventory management system is a crucial tool for businesses of all sizes. It
allows companies to efficiently track and manage their inventory levels, reducing the risk of
stockouts and overstocking. It also provides valuable insights into sales patterns, inventory
turnover, and other key metrics, helping businesses make informed decisions about inventory
levels and purchasing. Additionally, many inventory management systems offer integration
with other business systems, such as accounting and e-commerce platforms, further
streamlining operations and increasing efficiency. Overall, implementing an inventory
management system can greatly benefit a business by improving its ability to meet customer
demand and manage its resources effectively.

42
References
1. Arnold T. and Chapman S. (2004) Introduction to Materials Management. 5th
Edition.
2. Narasimhan S., Mcleavy D. and Billington P. (1995) Production Planning and
Inventory Control. 2nd Edition.
3. BM.M. Cornett, P.A. McGraw-(2006) Finance Management Source: Factors
Affecting Capital Structure A. Saunders,
4. University of California: Understanding Internal Controls. Research guide
5. Calvin B. Lee-(2003) Stanford University: Multi-Echelon Inventory Optimization
6. Dickinson, P. (2008). Organization formation and regulation compliance for Inventory
management (IM).
7. Esther, U. U. (2012). Effectiveness of Inventory management (IM) in a Manufacturing
Organization. Thesis, Caritas University, Amarjit-Nike, Department of Accountancy.
8. Othman, N. N. (2015). A Study on Inventory management (IM) at A Manufacturing
Organization. Degree's Thesis, University Malaysia Pahang, Faculty of Industrial
Management.
9. Waters, D. (2003). Inventory Control and Management (2nd ed.). John Wiley & Sons
Ltd.
10. Muller, M. (2011). Essential of Inventory management (IM) (2nd ed.). American
Management Association.
11. Mazanai, M. (2012). Impact of just-in-time (JIT) inventory system on efficiency,
quality and flexibility among manufacturing sector, small and medium enterprise
(SMEs) in South Africa. African Journal of Business Management, 6(17), 5786.
12. Kamau, L., & Kagiri, A. (2015). Influence of Inventory management (IM) practices on
organizational competitiveness: A case of Safaricom Kenya Ltd. International
Academic Journal of Procurement and Supply Chain Management, 1(5), 72-98.
13. Chalotra, V. (2013). Inventory management (IM) and Small Firms Growth: An
Analytical Study in Supply Chain. Vision, 17(3), 213 – 222.
14. Jonsson, P., & Mattsson, S. A. (2008). Inventory management (IM) practices and their
implications on perceived planning performance. International Journal of Production
Research, 46(7), 1787-1812.
15. Gupta, D. P., Gopalakrishnan, B., Chaudhari, S. A., & Jalali, S. (2011). Development
of an integrated model for process planning and parameter selection for machining
processes. International journal of production research, 49(21), 6301-6319.
16. Cannella, S., Framinan, J. M., Bruccoleri, M., Barbosa-Povoa, A. P., & Relvas, S.
(2015). The Effect of Inventory Record Inaccuracy in Information Exchange Supply
Chains. European Journal of Operational Research, 243(1), 120-129.
17. Carter, R. J., & Price, P. (1993). Integrated materials management. Pitman.
18. Dobler, D. W., Burt, D. N., & Lee, L. (1996). Purchasing and supply management: text
and cases. New York, NY: McGraw-Hill.
19. Arnold T. and Chapman S. (2004) Introduction to Materials Management. 5th Edition.
20. Narasimhan S., Mcleavy D. and Billington P. (1995) Production Planning and
Inventory Control. 2nd Edition.
21. M.M.Cornett, P.A.McGraw-(2006) Finance Management Source: Factors Affecting
Capital Structure A.Saunders,
22. University of California: Understanding Internal Controls. Research guide
23. Calvin B.Lee-(2003) Stanford University: Multi-Echelon Inventory Optimization
24. Dickinson, P. (2008). Organization formation and regulation compliance for Inventory
management (IM).

43
25. Esther, U. U. (2012). Effectiveness of Inventory management (IM) in a Manufacturing
Organization. Thesis, Caritas University, Amorji-Nike, Department of Accountancy.
26. Othman, N. N. (2015). A Study on Inventory management (IM) at A Manufacturing
Organization. Degree's Thesis, University Malaysia Pahang, Faculty of Industrial
Management.
27. Waters, D. (2003). Inventory Control and Management (2nd ed.). John Wiley & Sons
Ltd.
28. Muller, M. (2011). Essential of Inventory management (IM) (2nd ed.). American
Management Association.
29. Mazanai, M. (2012). Impact of just-in-time (JIT) inventory system on efficiency,
quality and flexibility among manufacturing sector, small and medium enterprise
(SMEs) in South Africa. African Journal of Business Management, 6(17), 5786.
30. Kamau, L., & Kagiri, A. (2015). Influence of Inventory management (IM) practices on
organizational competitiveness: A case of Safaricom Kenya Ltd. International
Academic Journal of Procurement and Supply Chain Management, 1(5), 72-98.
31. Chalotra, V. (2013). Inventory management (IM) and Small Firms Growth: An
Analytical Study in Supply Chain. Vision, 17(3), 213 – 222.
32. Jonsson, P., & Mattsson, S. A. (2008). Inventory management (IM) practices and their
implications on perceived planning performance. International Journal of Production
Research, 46(7), 1787-1812.
33. Gupta, D. P., Gopalakrishnan, B., Chaudhari, S. A., & Jalali, S. (2011). Development
of an integrated model for process planning and parameter selection for machining
processes. International journal of production research, 49(21), 6301-6319.
34. Welman, C., Kruger, F., & Mitchell, B. (2011). Research Methodology (3rd ed.). Cape
Town: Oxford University Press South Africa.
35. Study on spare parts inventory control by quantitative analysis in the environment of
ERP system by Zhou Wen-Yong; Xu Ying; Shen Bing

44