EFFECTIVENESS OF INVENTORY MANAGEMENT SYSTEM (A CASE STUDY OF ETHIOPIAN ROADS AUTHORITY)

Abstract

The effectiveness of inventory management has been considered to be an important issue on the performance of an organization. This study examines the effectiveness of inventory management (A case study of Ethiopian Roads Authority) and interprets the result by relating with different experiences taken from previous studies, books manuals and different websites. Descriptive study design and purposive sampling technique. The researcher used a sample size of 80 employees from the target population to act as sample size. The research used questionnaire, interview with key informants, and observation of the researcher. The collected data were analyzed quantitatively and qualitatively. The key findings from the study revealed that several surpluses scrape inventories are exist in the ware house and around store yard for many years, less modern inventory management system exist in the network districts. Lack of purchasing procedures throughout the organization, lack of use scientific method in determining their inventory level, the obsolete stocks has identified and counted by the Auditors and locked in one store. The researcher recommends for better improvement of the inventory management and control of ERA, by providing the constructive comments.