Inventory Management and Value Addition: A Case Study of Uchumi Super Market Kabalagala Branch Kampala

CHAPTER ONE 1.0. Introduction This chapter gives introduction of the study, problem of the study, the hypothesis, the scope of the study and the significance of the study. 1.1. Back ground of the study. Inventory management refers to the control measures to regulate the level of distribution of materials in various units of store, warehouse, business entities etc. the inventory management can also be influenced by either it's primary concentration with material management (MM) or physical distribution management (PDM) of an organization. (Kenneth Lyson and Brian Ferrington 2006). Inventory is a stock of materials which is ready for dispersal to be used in production or for sale to the final consumers.They cited inventory management approaches such as just-in-time, vendor managed inventory and economic order quantity in manufacturing industries and service delivery. In global world, Asian continent has by far well developed inventory management system worldwide. Japanese auto-mobile industry uses just-in-time inventory approaches where motor spare parts are delivered for assemble at the best time possible to reduce on holding costs that are associated with loss of inventory value while in stock. The Japanese refers to the above as Kanban approach. Other countries which follow the above suit include China in electronic products like phones and the economies of Middle East such as Dubai and United Arab Emirates in trade and commerce with leading world commercial headquarters.