THE ASSESEMENT OF INVENTORY MANAGEMENT PRACTICE, AT PHARMACITUCALS FUND AND SUPLIES AGENCY

Abstract

The purpose of the study was to assess the inventory management practice of pharmactiucals fund and supplies agency. The specific objective were to assess inventory management system /modeling and its effects on cost or profitability, determination of reorder level/points, inventory control and cost build up. To undertake the study descriptive methods is used to carry out the research and both primary and secondary data were used to analyze the data. To achieve the goal of this study from the total population of 120 employees of PFSA a sample of 100 were selected using purposive sapling techniques .Data analysis was done using simple descriptive statics using percentage ,frequency and mean .The findings reveled that in arriving at optimal quantity to order managements is not guided by Scientific inventory management models but it heavily depend on demand forecasting model , In determining optimum stock levels management not strives to maintain adequate balance between minimum cost of ordering and holding stock in PFSA. Inventory items in our stores are classified according to their economic value and importance and there is good inventory control and procedure of determining cost component .Based on the result it was recommended that Rather than depending on Market demand and guesstimate in managing inventory, there is need for the organizations to adopts a better models in determining inventory quantities and managing inventory cost