The Assessment of Inventory Management Practice: The Case of Awash Wine Share Company

Abstract

The study was intended to investigate the problem of the inventory management practices and controlling system of Awash Wine Share Company. The concept and the definition of inventory management and control system were discussed and the factory that affect inventory management were also listed out. The data for the study were collected by distributing questionnaires to Manager and non-manager of AWSC employees and the rest information was collected through interviewing some top management of the company. The systematic random sampling technique was applied. The respondents were selected by their identification card given from the company until the required sample sizes were obtained. After we got the sample size the participants were asked to fill the questionnaires. All of them were filled properly and returned and the data were analyzed by using SPSS 20 version software for descriptive analysis. The result presented was in tables, simple bar and pies graphs. They were , and interpreted by frequency and percentages. From summary finding,d the company has no excessive inventory and optimal level of stock, the balance at which head control notify preparing for purchase at minimum level which may be out of stock and it doesn’t provide flexible production schedule .They use manual or computer system for identifying the ware house location, but the store management system is poor regarding health and safety. Safety indication sign are not placed at position in the store and material are not stored the requirement condition like temperature room control and humidity control were not placed in the store at all. Due to this problem, some material were deteriorated before the expiry date.