Effectiveness in Inventory Management: A Case Study of Superdoll Trailer Manufacture Company Co. Ltd Dar-es-Salam, Tanzania

TABLE OF CONTENTS

Contents

DECLARATION

APPROVAL

DEDICATION

ACKNOWLEDGEMENT 

TABLE OF CONTENTS

CHAPTER ONE:

INTRODUCTION

I. I Background of the Organization ................................................................................................ 1

1.2 Statement of the problem ........................................................................................................... 2

1.3 Purpose of the study ................................................................................................................... 2

1.4 Objectives of the study .............................................................................................................. 2

1.4.1 Main objective of the study .................................................................................................... 2

1.4.2 Specific objectives of the study .............................................................................................. 2

I .5 Research Questions .................................................................................................................... 3

I .6 Scope of the study ..................................................................................................................... .3

1.6.1 Geographical Scope ................................................................................................................ 3

I .6.2. Content Scope ........................................................................................................................ 3

I .6.3 Time Scope ............................................................................................................................. 3

1.7 Significance of the study .......................................................................................................... .3

CHAPTER TWO:

LITERATURE REVIEW

Introduction ...................................................................................................................................... 5

2. I Meaning of inventory management ........................................................................................... 5

Importance of inventory management ............................................................................................. 5

2.3 Inventory Planning and Control. ............................................................................................... 7

2.4 Objectives of Inventory Control. ............................................................................................... 8

Cost associated with inventories ...................................................................................................... 9

2.6 The size of the Firm's Investment in Inventory ....................................................................... 12

2.7 Conflicting Viewpoints regarding inventory levels ............................................................... 13

2.8 Essentials of a successful inventory management control system ......................................... 14

2. 9 Inventory Management and Control Techniques .................................................................... 15

2.9.1 Economic order Quantity Model (EOQ) .............................................................................. 16

2.9.2 The ABC Inventory Control Technique ............................................................................ 18

2.9.3 Just in Time (JlT) Inventory Management ........................................................................ 19

CHAPTER THREE:

RESEARCH METHODOLOGY.

3 .1 Introduction .............................................................................................................................. 21

3.2 Research Design ...................................................................................................................... 21

3 .3 Research Population ................................................................................................................ 21

3.4. Sampling Techniques .............................................................................................................. 21

3.4.1 Stratified Random Sampling Technique ............................................................................... 22

3.4.2 Judgmental Sampling Techniques ........................................................................................ 22

3 .5 Sample Size ............................................................................................................................ .22

3.6. Research instruments .............................................................................................................. 22

3.6.1. Questionnaires ..................................................................................................................... 22

3.6.2. Interview .............................................................................................................................. 23

3.6.3. Observation .......................................................................................................................... 23

3.6.4 Documentation ...................................................................................................................... 23

3.7 Data Analysis Method ............................................................................................................. 23

CHAPTER FOUR:

RESEARCH FINDINGS AND ANALYSIS

4.0. Overview of STM store department. ...................................................................................... 24

4.1 Stock items at STM ............................................................................................................... 24

4.2 Receiving procedures at STM ................................................................................................. 25

4.3 Documenting procedures for goods received .......................................................................... 25

4.4 Goods issuing procedures ........................................................................................................ 26

4.4.1 Material issued to production department ............................................................................ 26

4.4.2 Materials sold to customers .................................................................................................. 26

4.5 Stock taking and stock movement tracking ............................................................................. 27

4.6 Stock re-ordering process ........................................................................................................ 29

4.6.1 International purchase ........................................................................................................... 29

4.6.2 Local purchase ..................................................................................................................... .30

Value for money (VFM) in inventory management ...................................................................... 31

4.8 System support in managing inventory .................................................................................. .32

4.9 Differences between system and physical stock ...................................................................... 32

4.10 Knowledge and skills of staffs .............................................................................................. .33

CHAPTER FIVE

SUMMARY, RECOMMENDATIONS AND CONCLUSION

5.0 SUMMARY ............................................................................................................................. 35

5.1 Recommendations ................................................................................................................... .35

5.1.1 Competence of staffs ............................................................................................................ 35

5.1.2 Stock taking .......................................................................................................................... 35

5 .1.3 Stock movement tracking ..................................................................................................... 36

5.1.4 Working system and product knowledge ............................................................................. 36

5 .1.5 Intervention of internal audit in procurement process ......................................................... .36

5.1.6 Re-ordering process .............................................................................................................. 37

5.1.7 Accuracy and relevance of accounting information ............................................................. 37

5.1.8 Segregation of duties in main store ...................................................................................... 38

5.2 Conclusion .............................................................................................................................. .38

ABREVIATIONS .......................................................................................................................... 39

REFERENCES .............................................................................................................................. 40

APPENDIX I: RESEARCH INSTRUMENTS ............................................................................ .42

a). Questionnaires .......................................................................................................................... 42

b). Interview Guide ........................................................................................................................ 46

APPENDIX II: TIME FRAME .................................................................................................... .47

APPENDIX III: BUDGET ........................................................................................................... .48