Assessing Inventory Management on the Performance of the Production Sector in Ghana

^{Authors: 1}Makafui R. A. Ackah & ²Eric Ekow Ghansah

¹Accra Polytechnic, School of Business, Department of Purchasing & Supply

²Ghana Institute of Management & Public Administration, GIMPA

Email: makafuiagboyi@gmail.com

Abstract

Inventory Management System is important to ensure quality control in businesses that handle transactions revolving around consumer goods. A good Inventory Management System will alert the company when it is time to reorder. Inventory Management System is also an important means of automatically tracking large shipments. An automated Inventory Management System helps to minimize the risk of error. An Inventory Management System also helps track theft in the warehouse providing valuable information about stocked items. Finding out the techniques of inventory management used as well as examining the relationship between inventory management and performance of Aluworks was an objective of this project; the effective management of inventory within Aluworks could bring a lot of cost savings to the organization and therefore increase organizational profitability, since inventory represents about forty percent. Despite the growing concern for non-stock procurement policies, inventory continues to play a vital role within our supply chain. The focus here is to reduce inventory, in order to reduce the cost of holding and ensure continuity of supply at the same time. To resolve these challenges, Aluworks should be abreast with the current computerized system of stock taking as well as developing a common platform to link the various departments since they are interlinked.

Keywords:  Procurement, Inventory Management, Inventory Control, Logistics & Transport

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