A Case Study of Inventory Management in a Manufacturing Company in China

The study aimed at investigating the role of effective inventory management practices on organisational performance; a case study of Municipal Hospital Tarkwa in the Western Region of Ghana. The specific objectives of the study were to establish the inventory management practices used by organisations, to find the effect of inventory management practices on organisational performance, and to determine the challenges of implementing inventory management practices in organizations. The study adopted descriptive and causal research designs and used questionnaires as the data collection instrument. Data were collected from 200 respondents and STATA 13 analytical tool was used to perform the analysis. The results were presented using frequency tables and descriptive statistics tables. The study also used Probit regression analysis to establish the relationship between the dependent and the independent variables. The findings show that the stakeholders of the hospital are generally happy with the service delivery of the hospital. Thus, the results show that the hospital adopts various inventory management practices including; activity-based costing, economic order quantity, material requirement planning, materials resource planning, enterprise resource planning, distribution requirement planning, and just in time. The study concludes that effective inventory management positively affects the performance of organizations, in this case, the quality of service delivery of organizations. The study recommends organizations successfully implement an effective inventory management system. This will help reduce the risks of shortages. In addition, the concept of inventory management could be simplified for organizations in Ghana. This can be done through education or training to all staff in organizations to enlighten them on the need for effective inventory management practices for their organization’s performance.

Effective inventory management is crucial for optimizing organizational efficiency and performance. This study explores key themes in inventory management and stock control practices focusing on workforce planning, employee engagement, communication, risk management, modernization, and strategic planning. The findings indicate that strategic workforce planning is essential for ensuring adequate staffing levels and preventing delays while active employee engagement enhances accuracy and decision-making. Clear communication and interdepartmental collaboration are vital for coordinating efforts and aligning strategies. Risk management practices including FIFO implementation and regular audits are necessary to mitigate risks related to stockouts, damages, and theft. Modernizing inventory management systems and investing in advanced warehouse facilities improve data accuracy and operational efficiency. Strategic material planning ensures timely procurement and prevents shortages. The study concludes that integrating these elements leads to more efficient operations, better risk mitigation, and alignment with organizational goals, thereby enhancing overall performance and competitive advantage. Recommendations include enhancing workforce planning, increasing employee engagement, strengthening communication, improving risk management strategies, investing in modernization, and enhancing strategic planning and allocation. Implementing these recommendations can lead to significant improvements in inventory management practices and organizational efficiency.

BackgroundIn order to deliver quality health services, safe, effective, affordable and quality medicines are needed. Inappropriate storage conditions, poor infrastructure and poor medicine management practices may lead to poor medicines quality, stock damage and expiration.ObjectiveAssess storage and inventory practices to improve the medicine supply chain in South Sudan.MethodologyThe study used a descriptive cross-sectional design. The study population comprised 12 Health Centers in Juba where inventory management was practiced. Both questionnaire‐guided interviews for staff self‐assessment, and observer assessment were used by the researcher. With regard to storage and inventory management, the researcher collected data on the condition of storerooms with regards to availability of enough storage space, availability of enough storage equipment, and temperature conditions of the medicines stores, among others.ResultsThe study found that store and inventory management practices varied widely in the different health facilities. Hospitals and central medical stores exhibited good or average inventory and storeroom management practices, respectively. The two hospitals and medical stores scored 100% in the elements in the assessment of storerooms and stock management. Some primary health care centers exhibited good inventory and store room management practice, whilst others were rated as average or poor. Most of the elements assessed scored 37% in storeroom assessment while elements assessed for inventory management scored less than 75%. There was great similarity between the observation assessment and the self-assessment.ConclusionIn conclusion, store and inventory management practices and knowledge of the respondents varied in the different health facilities. Hospitals and central medical stores exhibited good, average and poor inventory and storeroom management practices assessed through self-assessment and observation assessment by the researcher. There was a great similarity between the observation assessment and the self-assessment.
 Rwanda J Med Health Sci 2021;4(2): 310-320

PurposeThe purposes of this study are to examine the standard operating procedure (SOP) on inventory management practices, identify any weaknesses in inventory management and examine its impact on the performance of the company. Inventory management is important because it ensures smooth production and prevents loss of sales because of stockout and/or customer dissatisfaction.Design/methodology/approachThis study selects one manufacturing company as a case study and uses the mixed data collection method of document analysis and observation. The research analysis was conducted by using COSO Internal Control – Integrated Frame work 2013 as guidance.FindingsIt is revealed that a company practices risky inventory management in keeping stock, as it relies heavily on third-party warehousing services beyond the control of the company. This study also reveals that the SOPs are too general and lack specificity. However, poor inventory management has a modest influence on the financial performance of the company.Research limitations/implicationsIn completing this study, some limitations are experienced such as changes on the management structure of the company as well as the department itself. Frequent changes on several procedures also may influence this study to obtain accurate information. In addition, some highly confidential documents such as detailed information and minutes from management meeting were not permitted to be examined.Practical implicationsThis study provides recommendations to improve weak internal controls particularly on SOPs, so that fraud and mismanagement opportunities can be reduced.Originality/valueThis study makes an original contribution, as it enhances the theoretical and practical understanding on inventory control and management systems, particularly for a manufacturing company in the emerging market environment. In addition, it examines various internal financial reports and directly observes the process in supply change management, which are generally difficult to be accessed by academic researchers.

One of the most important parts of materials management is inventory management and which has been observed that there is lack of effective and efficient inventory management practices in some institutions in Ethiopia as a result most institutions are not successful. The purpose of this study was to assess the existing inventory management practices and internal controls of a Wolita Sodo University in Ethiopia. The study employed interview questions and administered questionnaire and observation to collect primary data from the administrative staff of the university. Purposive sampling approach was employed to identify sixteen employees directly involved in inventory management operations. The quantitative data was analyzed with the aid of Statistical Package for Social Sciences (SPSS) version 20. The study revealed that the university has poor inventory management practices and for this end it is better if the university uses scientific methods of managing inventories and should modernize and computerize the inventory management and recording procedures in order to meet customer demands and for smooth functioning of the institution. Moreover, it was revealed that, the company was faced with serious long lead time challenges due to bureaucratic procedures in ordering parts leading to cancellation of purchase orders and losing customers. Keywords: Inventory, Inventory management, lead time, internal control DOI : 10.7176/IEL/9-4-01 Publication date :May 31 st 2019

Efficient inventory management is crucial for various industries' operational performance and financial success. As market demands evolve and technological advancements progress, the complexity and importance of inventory management have increased, making it essential for maintaining a competitive advantage. This study aims to systematically review existing literature to understand the impact of inventory management practices on operational performance across different industries and contexts. Employing the PRISMA framework for systematic literature review, the Scopus database was the primary source for selecting relevant articles. The initial search yielded 791 results, refined through rigorous inclusion and exclusion criteria, ultimately resulting in the thorough analysis of 12 critical articles. This review's findings highlight that advanced inventory management systems, such as deep reinforcement learning and real-time analytics, significantly enhance operational efficiency. These systems facilitate more effective information sharing and enable tailored inventory strategies, which improve supply chain performance. This improvement is particularly evident in sectors such as healthcare and manufacturing, where precise inventory control is critical. Furthermore, financial metrics like days inventory outstanding correlate positively with firm performance, underscoring the strategic importance of inventory management in achieving financial success. The study highlights the importance of advanced inventory management practices in enhancing operational efficiency and financial performance despite high setup costs, technological complexity, and data quality issues. This study synthesizes research on inventory management practices, offering insights for businesses to enhance operational performance and emphasizes the need for continuous innovation for competitiveness.

Inventory management is a critical component of procurement efficiency, ensuring maximum resource usage, reduced operational costs, and timely delivery of products and services. Efficient inventory management procedures are crucial for public utility firms like Nakuru Water and Sanitation Company (NAWASSCO) to maintain uninterrupted service delivery and meet consumer demands. However, inefficiencies in inventory planning, management, record accuracy, and stock level monitoring frequently result in delayed procurement procedures, stock outs, and excessive inventory expenses. The purpose of this study was to determine the impact of inventory management practices on procurement performance at NAWASSCO. The study specifically looked at the impact of inventory planning, inventory control techniques, record accuracy, and stock level monitoring on procurement performance. The Economic Order Quantity Model, Just-in-Time Theory, and Inventory Control Theory served as the study's framework. The target population comprised 63 (sixty-three) NAWASSCO personnel from areas such as procurement, finance, technical operations, ICT, Audit, stores, and department heads. The study adopted a census technique to include all 63personnel. A pilot study was conducted in Nakuru Rural Water and Sanitation Company to ascertain the instrument of data collection reliability and validity. Questionnaires were preferred in data collection and offered convenience to respondents. The data was analyzed using descriptive and inferential statistical techniques. With the aid of the Statistical Package for Social Sciences (SPSS). Descriptive analysis used frequencies, percentages, means, and standard deviations, while inferential statistical analysis involved the use of Pearson's product-moment correlation coefficient. The relationship between inventory management practices and procurement performance at Nakuru Water and Sanitation Company (NAWASSCO) was determined through regression analysis using R², beta coefficients, standard errors, and p-values. The descriptive and inferential data indicated that inventory management strategies have a substantial impact on procurement performance. The results showed that inventory planning (β = 0.355, p =.000 < 0.05), inventory control techniques (β = 0.425, p =.000 < 0.05), and inventory record accuracy (β = 0.438, p =.000 < 0.05) significantly improved procurement performance. This indicates that excellent inventory planning, proper management mechanisms, and correct inventory records all contribute to increased procurement efficiency. The report recommends that NAWASSCO incorporate efficient inventory planning into its procurement framework to achieve accurate forecasts and timely material replenishment. Furthermore, the company should develop its inventory control systems and update inventory records on a regular basis to improve decision-making and reduce discrepancies. Furthermore, it should combine its stock level monitoring technologies with other inventory management components, such as planning, control, and record accuracy, to ensure timely reordering, avoid stock outs or overstocking. Implementing these principles can improve openness, shorten procurement delays, and boost overall organizational performance.

This article explores the importance of inventory management for operational efficiency in a company specializing in electrical and hydraulic materials. The objective is to assess how inventory management can optimize operational performance. The research was conducted through a case study involving a detailed analysis of data on inventory management practices, including inventory levels, replenishment times, and demand forecasting accuracy. The results show that implementing advanced inventory control techniques and accurate forecasting significantly improves operational efficiency. A reduction in operational costs and an improvement in market responsiveness were observed. The conclusion reinforces that effective inventory management is crucial for enhancing operational efficiency and gaining a competitive advantage. It is suggested that other companies in the sector consider adopting similar strategies to achieve comparable benefits.

This qualitative study explores the application of raw material inventory accounting information systems and internal control measures at PT. Perdana Sukses Makmur, a manufacturing company in Indonesia. Through interviews, observation, and documentation analysis, the research identifies that while the company's inventory system is well-implemented, certain internal control measures, such as the combination of functions and responsibilities, require improvement. These findings contribute to understanding inventory management practices in manufacturing firms, suggesting areas for enhancing internal control to improve production efficiency and organizational performance. Highlight: Efficient Inventory System: PT. Perdana Sukses Makmur demonstrates effective inventory management practices. Internal Control Challenges: Addressing function combination enhances organizational oversight. Production Efficiency Implications: Refining internal controls enhances manufacturing performance. Keywoard: Inventory Management, Internal Control, Manufacturing Company, Qualitative Study, Indonesia

Health supply chain is a key pillar to sustainable development of a country. Majority of the global population depends on proper supplies and services to access quality health care. Thus, inventory management establishes itself as backbone of health supply chain delivery. However, performance of public health facilities has been fluctuating over the past years because of risks whose outcome affect procurement, thus, undermining the capability functionality of the health sector. This study sought to investigate the effect of inventory management practices on performance of public health facilities in Nairobi City County. The guide specific objectives applied for this study comprised automated systems, inventory levels management, and inventory budgeting and just-in-time inventory. Theories related to the study were economic order quantity, lean theory, contingency theory and transactional cost analysis. Additionally, a conceptual framework was adopted to show the causal relationship of the independent variables automated systems, inventory levels management, and inventory budgeting and just-in-time inventory with the performance of public health facilities as the dependent variable. A cross-sectional survey research design was adopted for the study applying both the qualitative and quantitative approaches. The target population was the 290 staff of the level four public health facilities that are seven in number within the county. Stratified random sampling technique was used to pick a sample size of 180 respondents which represented the procurement, stores, medical and hospital administrative functions. Both primary and secondary data was used, with the primary data obtained through questionnaires that was administered by the researcher. Quantitative data was also be analyzed using Statistical Package for Social Sciences version 23 with descriptive statistics presented in figures and tables. Further pilot testing was undertaken before main study to assist in identification of probable weakness of the research instrument through data validity and reliability test. The Cronbach’s Alpha value was greater than 0.7 which indicated that the questionnaire met the minimum acceptable threshold. The study findings showed that inventory management practices namely automated systems, inventory levels management, inventory budgeting and just-in-time inventory significantly influence the performance of public health facilities in Nairobi City County, Kenya. The study concluded that performance was predicted to improve for every unit increase in these practices. The study further recommends that public health facilities should implement automated systems to reduce the need for manual inventory tracking and management. Some recommendations include through assessing needs, choosing the right technology, systems implementation, user training, and need identification. This will ensure improved inventory management and improve performance of public health facilities.

Inventory is a vital part of current assets mainly in manufacturing and business concerns. Huge funds are committed to inventories as to ensure smooth flow of production and to meet consumer demand. Inventory management plays a crucial role in balancing the benefits and cost associated with holding inventory. Effective and efficient inventory management goes a long way in survival of a business firm. Inventory management practices effects on return on asset of the companies in beverage food and tobacco sector in Sri Lanka Colombo stock exchange at a great scope. A panel data from 2012 to 2016 was gathered for the analysis from the annual reports of 20 beverage food and tobacco sector firms considered. The multiple regression model was applied in the data analysis to find out the relationship between inventory management practices and return on asset. The variables used include inventory conversion period, operating cycle, current ratio, cash conversion cycle and return on assets. The results provide a significant positive relationship between inventory conversion periods and return on asset. In addition to that, cash conversion cycle was found significant negative relationship with the profitability measures of return on asset. Keywords: Inventory Management; Beverage Food and Tobacco sector; Return on asset DOI: 10.7176/RJFA/11-14-02 Publication date: July 31 st 2020

Within this study, the effectiveness of this modern inventory control and management systems for small and medium enterprises (SMEs) were searched by examining the inventory control methods, and modern inventory management systems. The effective inventory control and management policies have a great importance for the future of SMEs. Quickly changes in consumer preferences, increases in the variety of products, uncertainty of demands, traditional inventory mangement approaches caused difficulty in the situation of firms. In today’s competition world, SMEs have to decide timely and accurately in order to survive in the market. The extent of this study, modern inventory control and management systems were searched to provide facilities for the managers. In SMEs the effectiveness of the application of these models were studied to identify thanks to the search. For that purpose, the degree in the practicability of modern inventory management systems in SMEs of Karaman was searched. There has not been found in the most of the SMEs effective inventory management policy by the questionnaire. As a result of that, the inventory management models can not be apllied at the desired level was determined

Inventory management in Indian steel industry is felt as one of the unexplored area in terms of research practices. This study attempts to understand the major aspects of inventory management of Indian steel industry like major inventory management issues prevalent in steel firms, and impact of these issues, drivers, barriers, and possible measures that may help to resolve these issues. This study is based on an exploratory qualitative study of major Indian steel firms. The narratives reveal six major themes: Inventory management practices; Inventory issues in the steel industry; Major drivers for effective inventory management in Indian steel industry; Major barriers for the implementation of effective inventory management techniques including the implementation of ERP/MRP to manage inventories; Impact of inventory issues; Inventory control techniques to resolve these issues.

This research paper presents a case study analysis of the inventory management challenges faced by small and medium-sized cosmetic enterprises (SMEs) and the strategies employed to overcome them. The study was conducted through qualitative research methods, including in-depth interviews with managers of SMEs in the cosmetics industry. The findings revealed that the major challenges faced by SMEs in managing their inventory were poor demand forecasting, inadequate storage facilities, and lack of efficient inventory control systems. To mitigate these challenges, SMEs employed strategies such as outsourcing inventory management, adopting technology-driven inventory control systems, and establishing efficient supply chain networks. The study concludes that effective inventory management is crucial for the success of SMEs in the cosmetics industry, and the strategies identified in this study could be useful for practitioners seeking to improve their inventory management practices.

This paper attempts to identify the gap between inventory management theory and practice based on the critical examination of the trends in academic research and the practicing world. It also attempts to provide suggestions to potentially bridge this gap. Keeping these objectives in mind, key research publications and articles in the area of finished goods inventory management written in last 30 years by research scholars and practitioners were reviewed. FMCG industry was selected as a benchmark for finished goods inventory management best practices and the divergence of academic research with real life inventory management practices was analysed. Some innovative and thought provoking ideas for increasing the synergy have been suggested. This paper also highlights the recent developments in inventory management practices in FMCG industry and examines the research work in this direction.