Authors: 1Eric Boafo Dadzie, 2Renas Ayebono Atanga, & 3Eric Ekow T. Ghansah (Ph.D. Candidate)
1Assistance Procurement Officer & 2&3Lecturer
1&3Takoradi Polytechnic, & 2Ghana Institute of Management & Public Administration
Email: boafodadziee@yahoo.com
Abstract
Organizations rely on inventory to balance supply and demand, and to buffer uncertainties in the supply chain. However, inventory can be one of the most expensive assets of an organization; hence it must be managed closely. Wisner et al (2009) has opined that the right amount of inventory supports business operations, but too little of it can adversely affect customer service. Conversely, excess inventory does not only lead to unnecessary inventory carrying cost but also hides production problems and other flaws in a company. This study seeks to describe and understand the inventory management policies currently in use at GHACEM. It was also the objective of this research to determine whether or not the inventory management policies in GHACEM are plagued with some challenges. And finally, this study seeks to explore and understand the extent to which the inventory management systems and policies at GHACEM has enhanced productivity and improved profitability. Literature was reviewed from books, journals, articles, and the internet. The study used a case study of a company with a target population of thirty (30). A simple random sampling was used to draw 66.7% sample from the target population, consisting of twenty (20) members from the company, and was based on a lottery system. A questionnaire was used for the collection of data and has been analyzed in a form of a frequency table and diagrams. The key conclusion of this study was that for an organization to enhance productivity, it needs to effectively and efficiently manage its inventory, as inventory is a very important asset of an organization. The main recommendation was centered on how the company should ensure periodic review of all items in order to update the demand pattern of all items held, thus helping the organization to keep the right level of inventory, and thereby lead to reduction in overstocking and under stocking. Also, the company should gradually fade away the manual system of stock records such as the bin cards and introduce the computerized system of stock records such as the “Ebiz Frame-Enterprise Resource Planning software”.
Keywords: Inventory Management, Procurement Control, Inventory Control, Productivity
