Good Effective Inventory Management And The Performance Of A Private Firm – Sources For The Literature Review Literature Review Example

Type of paper: Literature Review

Topic: Inventory, Management, Education, Study, Organization, Information, Company, Business

Pages: 8

Words: 2200

Published: 2020/12/12

Kelebu, M. (2013). The impact of inventory management and performance of private organizations in Uganda. A Case Study of Coca- Cola Mbarara Plant in Mbarara Municipality. (Bachelor’s Research Report). Academia.edu.
This study sought to find out impacts that effective inventory management and performance can bring to Coca Cola Plant as a private firm in Mbarara, Uganda. It is going to be important to the current literature because of the researcher’s good insights into the definitions of various key terms and current techniques employed by private firms in inventory management, the association between effective inventory management and the performance of a private firm like Coca-Cola and challenges faced by inventory management officers in private organisations. To attain the objectives, the researcher used a descriptive research design, exploiting both quantitative and qualitative approaches so that he could generate relevant information to answer the study’s research questions. The study collected both primary and secondary data. Primary data were collected from the staffs and customers of the Coca-Cola Plant by means of interview guides and questionnaires. Secondary data were collected from secondary sources like textbooks, newspapers, magazines, journals and so forth.
Findings showed that the Plant uses techniques like integrated system, inventory requirement points, recording all purchases and issues at the production department, over stock brands, especially for first moving products and so forth. However, organisations also used different kinds of valuations like First in First out (FIFO), Last in First out (LIFO), net realizable value and average cost method. The study indicated a strong positive relationship between effective inventory management and the performance of the firm. Managers faced challenges in their inventory management like loss of inventory. However, the study espouses some limitation like involving respondents from one organisation, the researcher lacking superior skills and experience to process a more insightful and advanced research.
Ogbo, A.I., Victoria, O.I., & Ukpere, W.I. (2014).The impact of effective inventory control management on organisational performance: a study of 7up Bottling Company Nile Mile Enugu, Nigeria. Mediterranean Journal of Social Sciences, 5(10).
The study had a main consideration of drawing the relationship between the Nile Mile’s effective management of inventory and its performance. It will be important to this literature because of its good investigations in flexible inventory service, importance of effective inventory management in easier retrieval of materials, customer relations, cost reduction and return on investment in the organisation. Their study employed survey description methodology, and the data was described using the Chi-Squared method. It found out that organisations adopted effective inventory systems to smoothen out their operations, maintain transparency and accountability and optimise the use of resources. All of these objectives are important for the organisations to keep its operations running without interruptions. However, the researchers also found out that flexible inventory control mechanism was the best method that the organisation could adopt to achieve its aims. The organisation also benefited from the inventory management on the perspective of cost-saving and customer relationship improvement. In this regard, when the firm hold optimal stock, which is not very much, obviously it will not incur a lot of holding costs, and customers will be served on time. Overall, the effective inventory performance had a positive impact on the organisation’s sales efficiency, profitability and returns on investments. However, the study is limited by the fact that it was done in one organisation, and the chi-square manipulations were not specific to test one item.
Mwansele, H.A., Sichona, F.J. & Akarro, R.R.J.(2011).Determination of inventory control Policies at Urafiki Textile Mills Co Ltd in Dar-es-Salaam, Tanzania. Business and Economics Journal, BEJ-23.
This paper aimed at examining situations of inventory management at Urafiki Textile Mills Co Ltd -Dar-es-Salaam in Tanzania. Therefore, the paper is helpful to the literature by showing how an organisation’s Economic Order Quantity (EOQ) can be developed to ensure that the organisation only keeps optimal quantity of resources for economic production. In this regard, the paper examines inventory positions at the company and various types of costs related to inventory to calculate EOQ and re-order level. Their results reveal that it is important that the ordered raw materials arrive at the same time for the best management, because at Urafiki Ltd, the raw materials have been arriving at different times, making the management of optimal level to be difficult. They also urge the company to charge all raw materials at the same price levels. The most unique scenario in their study is that unlike other companies that regard only one type of inventory, they have calculated optimal levels of several types of inventories that accompany cotton lint to manufacture cotton fabrics. Therefore, they have considered EOQ and re-order levels of cotton lint, chemicals and dyes. The study concluded that for the formalisation of its inventory management, the company need to develop and employ the EOQ model to minimise its operation costs. Although the authors tried to standardise the prices and quantities on yearly basis, that may not be the case in normal operations. The company buys the materials from different buyers and at different prices due to seasonal fluctuations in a year.
Schopperle, A. (2013).Analysis of challenges of medical supply chains in sub-Saharan Africa regarding inventory management and transport and distribution. (Project Thesis). Transaid.com .London: University of Westminster.
The main objective of this article was to find out challenges that the WHO faces regarding its medical inventory management in the sub-Saharan Africa. The paper will contribute to the current literature by its insights in identifying challenges that an organisation can face in its inventory management and recommendations on how to avert them. The researcher has employed structured interviews to solicit ideas from the stake holders in the WHO medical supplies in the sub- Saharan Africa. In this regard, her study has explored challenges that include inadequate storage facilities, poor communication among officers involved in supply, lack of knowledge in storage procedures and process management and the inadequacy of human resources among others. The findings of the study revealed that the stakeholders should focus on well functioning transport and communication systems, clear responsibilities and duties, adequate budgeting and good supervision to eliminate such barriers that are likely to be encountered during the management processes. Further, the organisations should also consider easier access to information, regular monitoring, guidelines in standardisation, employee awareness about best inventory management indicators and using technologies and employees that enhance efficiencies. Although the study covers a span of countries in Africa, especially in the sub-Saharan region, in field of health, some of its recommendations may not be applicable to a private organisation.
Muthaba, S., Dlodlo, N., Smoith, A. & Adigun, M.(2011).The use of RFID and web 2.0 technologies to improve inventory management in south African enterprises. Electronic Journal Information Systems Evaluation, 14(2).
This study sheds more lights to other articles previously mentioned regarding how a firm can achieve its objective of cost-effectiveness by using Internet of Things (IoT), and more specifically the Web 2.0 and the Radio Frequency Identification (RFID) tools to manage the stock. Thus this literature review will benefit from the paper by its insights into how one can use such technologies to prevent loss of stock, locate misplaced stock, gain notifications on stock levels, and eradicate counterfeiting tendencies that may be in the organisation. Their study was based in developing countries, South Africa in particular. The paper has explored how such technologies are being used in developing countries like South Africa, and how firms can make use of them to be very effective and achieve the desired results. In this regard, many private enterprises in South Africa, and as are others in other developing nations are becoming aware about this technologies with their use continuing to increase. The demands for them have risen due to the fact that employers are more eager to reduce theft, fraud and counterfeits of their products. Better than the current technologies, the RFID technologies enables stock managers to keep track of and trace their goods as they move from one location to another. The reduction in loss of the products makes it seen as a better tool to maintain efficiency in South African private firms. Although their study has added to the current literature on technologies for efficient inventory management, it has some drawbacks. The cost of technology is still a major problem to many private firms in developing countries like those in Africa.
Ng'ang'a K.J. (2013).An assessment of the factors influencing effectiveness of inventory control; Ministry of State for Provincial Administration and Internal Security, Nairobi - Kenya. International Journal of Business and Commerce, 3(1), pp. 33-53.
The major aim of this study was to assess factors that influence the effectiveness of organisation inventory control in the public sector. The study will be important to the literature review in that it shows how delays in procurement of goods, long bureaucratic procedures and other factors may affect inventory management. The study took descriptive survey on government employees working in the Ministry of State for Provincial Administration and Internal Security, Nairobi – Kenya. On findings, lack of adequate stationeries or store records, delegation of responsibilities, lack of specific time and costs of purchasing the inventory affected the inventory management negatively. Staff skills mixed with experiences was also important in determining the efficiency of such organisations. The other factor was the long waited funding procedures that was affecting the organisation adversely to be efficient. The study employed data from the Kenyan ministry, and this could hinder its applicability in the private sector. Moreover, employees in the government organisation may not reveal information well due to suspicions that one may be spying on them. The study has stated that it lacked necessary funds and time to conduct necessary personnel in the Ministry. Being a government ministry, the researcher was denied some important information to accomplish his objective. Further, some government records are poorly kept, and some employees may not give accurate and adequate information due to lack of knowledge in the running of the ministry.
Eckert, S.G. (2007).Inventory management and its effects on customer satisfaction. Journal of Business and Public Policy, 1(3).
The researcher wrote this paper with the main objective of investigating the role of inventory management in improving customer satisfaction. It will contribute to the current literature with its exploration on how the firm should consider customers’ requirements and expectations before setting up a system for inventory management. This will ensure that materials that are needed to make quality products are not delayed. The study also gives insights into retailers’ own experience with customers and what they consider important before developing the inventory management system. The researcher employed descriptive survey whereby respondents’ responses were rated on Likert’s scale, and their means found for overall description and analysis. In the finding, he noted that when customers’ demands and expectations are put into consideration, a firm cannot order materials that will be used to make products that are not demanded. The retailers, because they are risk averse, they will also be avoiding loses in that instance. However, the study experienced some problems that included using relatively small samples, and not examining middlemen that are employed for the stock management functions of the firm. The research items did not also consider if the respondents used technology or not. Some technologies like the RFID are becoming widely used, and it was important that their effects on customer satisfactions are also investigated.

Some employees also had no good knowledge regarding the management of the inventory of their firm.

Goodwin, J et al. (2009).Inventory management, improvement and QA/QC.EMEP/EEA Emission Inventory Guidebook 2009. Copenhagen: European Environment Agency.
This book explores the topic considering several aspects that involve general inventory management. The current literature review will gain from it by the fact that it explores inventory processes, institutional arrangement, inventory quality framework, archiving, documentation and reporting and inventory management improvement. Published by peer authors under the auspice of European Union, it could have greater plausibility in contributing to the current literature. In this regard, it explores some concepts under the topic before discussing in details processes that are involved for the inventory management to be effective. However, their main assertions rest on clear inventory process, institutional arrangement and quality framework as the key requisites for the quality management. They have also illustrated main objectives of effective inventory management as transparency, consistency, comparability, completeness and accuracy. The inventory process should be geared towards meeting deadlines and ensuring quality products. To affect this, they mention six steps: requesting inventory, requesting data, delivering data, estimating emissions, drafting reports and delivering it. Importantly, they intertwine the steps with three major steps of inventory management as providing data, compiling inventory and disseminating the product. One is supposed to formalise the institutional arrangements by ensuring that the parties concerned are aware about the laws, contracts, memorandum of understanding and gentlemen’s agreement that govern how the organisation run. The book has also discussed extensively on data delivery protocols, inventory quality framework, quality assurance and inventory improvement. Although it has no plausible empirical evidence, it provides good guidelines for organisations to employ in inventory management.
Adeyemi, S.L. & Salami, A.O. (2010). Inventory management: a tool of optimizing resources in a manufacturing industry a Case Study of Coca-Cola Bottling Company, Ilorin Plant. Journal of Social Science, 23(2), pp.135-142.
Cachon, G.P. & Fisher, M. (2010).Supply chain inventory management and
the value of shared information. Management Science, 46(8), pp.1032-1048.
This study sought to examine the importance of sharing inventory management information among firms in a supply chain. It will be very helpful to the current literature review because it compares between a firm with sound inventory policy and another without inventory policies to realise their difference as regards the management of inventory in a supply chain. However, specifically, the study employed data from firms that are in a supply chain that share information regarding inventory of their business compared to those that did not bother to share any information amongst themselves on their supply chain. In this regard, to ascertain the sharing of information, the researcher had to consider various aspects of information technology that were to facilitate it. The study found out that information sharing information was key in reducing some costs, for instance holding costs. Since the customer would not have worry about shortage of the product he can book her purchases at a certain date when the current stock would have finished, because of effective communication with its suppliers. Moreover, retailers would be advantaged due to the fact that since there will be many suppliers, they can get sources that sell cheaper. However, their histogram results can be a bit puzzling, although quite appealing. Although firms in a chain where suppliers are electronically connected have many members who are benefiting by receiving increased sells, at nearly the same level, those in the contrary category show just one or few salient organisations benefiting more. Indeed it shows that the firms in the contrary category do not share information amongst themselves.

References

Adeyemi, S.L. & Salami, A.O. (2010). Inventory management: a tool of optimizing resources
in a manufacturing industry a Case Study of Coca-Cola Bottling Company, Ilorin Plant. Journal of Social Science, 23(2), pp.135-142.
Cachon, G.P. & Fisher, M. (2010).Supply chain inventory management and
the value of shared information. Management Science, 46(8), pp.1032-1048.
Eckert, S.G. (2007).Inventory management and its effects on customer satisfaction. Journal
of Business and Public Policy, 1(3).
Goodwin, J et al. (2009).Inventory management, improvement and QA/QC.EMEP/EEA
Emission Inventory Guidebook 2009. Copenhagen: European Environment Agency. Retrieved on 8 March 2015 from http://www.eea.europa.eu/publications/emep-eea-emission-inventory-guidebook-2009/part-a-general-guidance-chapters/6-inventory-management-improvement-and-qa-qc.pdf
Kelebu, M. (2013). The impact of inventory management and performance of private
organizations in Uganda. A Case Study of Coca- Cola Mbarara Plant in Mbarara Municipality. (Bachelor’s Research Report). Academia.edu. Retrieved on 8 March 2015 from http://www.academia.edu/4380077/THE_IMPACT_OF_INVENTORY_MANAGEMENT_AND_PERFORMANCE_OF_PRIVATE_ORGANIZATIONS_IN_UGANDA._A_CASE_STUDY_OF_COCA-_COLA_MBARARA_PLANT_IN_MBARARA_MUNICIPALITY
Muthaba, S., Dlodlo, N., Smoith, A. & Adigun, M. (2011).The use of RFID and web 2.0
technologies to improve inventory management in South African enterprises. Electronic Journal Information Systems Evaluation, 14(2).
Mwansele, H.A., Sichona, F.J. & Akarro, R.R.J.(2011).Determination of inventory control
Policies at Urafiki Textile Mills Co Ltd in Dar-es-Salaam, Tanzania. Business and Economics Journal, BEJ-23.
Ng'ang'a K.J. (2013).An assessment of the factors influencing effectiveness of inventory
control; Ministry of State for Provincial Administration and Internal Security, Nairobi - Kenya. International Journal of Business and Commerce, 3(1), pp. 33-53.
Ogbo, A.I., Victoria, O.I., & Ukpere, W.I. (2014).The impact of effective inventory control
management on organisational performance: a study of 7up Bottling Company Nile Mile Enugu, Nigeria. Mediterranean Journal of Social Sciences, 5(10).
Schopperle, A. (2013).Analysis of challenges of medical supply chains in sub-Saharan Africa
regarding inventory management and transport and distribution. (Project Thesis). Transaid.com .London: University of Westminster. Retrieved on 8 March 2015 from
http://www.transaid.org/images/resources/Medical%20Supply%20Chain%20Challenges.Masterthesis.ASchoepperle.pdf

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