Cost Implication of Inventory Management in Organised Systems
This paper investigates the role of cost implication in inventory management in order to improve Institutions’ Stores. The study takes a critical look at the costs involved and the use of economic order quantity as a tool that minimizes the total inventory costs, the time saved between the manual and the automated operational system using a Nigerian University Store, AYZ University (not the real name because of the ethical issue), as a case study. The study was being guided by the following objectives; to have stocks available when required, to maintain accurate stock records and facilities, and to recommend area improvement of the inventory system at AYZ University Stores. Findings revealed that the economic order quantity is seen as a control technique that is attributed to determine the inventory costs and how it can be minimized. The data collected from the store were analyzed and the results obtained shows that the existing system which is majorly manual based is not effective when it comes to time management and efficiency. A new automated system, computerized maintenance store system (CMMS) was proposed for development and implementation for the AYZ University Store for her end users of the store and her clients from within and outside the University system. This would be greatly improved in terms of both financial and time cost of inventory management.
 Ballentine, R & L Ravin, R & R Gilbert, J. (1976). ABC inventory analysis and economic order quantity concept in hospital pharmacy purchasing. American Journal of Hospital Pharmacy, 33, 552-555.
 Buckland & Michael K. (1998). Library services in theory and content. (2nd ed.) Oxford: Pergamon Press.
 Carlos Coronel. (2014). Database systems: Design, implementation & management. Course Technology Inc.
 Charles T. Horngren. (2002). Management and cost accounting. Financial Times-Prentice Hall.
 Chase, R., Jacobs, F., & Aquilano, N. (2004). Operation management for competitive advantage. (11th International ed.) New York: McGraw Hill.
 Chopra, S., Meindl, P., & Kalra, V. (2007). Supply chain management: Strategy, planning and operation. New Delhi: Dorling Kindersley.
 Christopher, M. (2005). Logistics and supply chain management: Creating value-added networks. Harlow: Prentice Hall.
 Dennis, A., Wixom, B.H., & Roth, R.M. (2006). Systems analysis and design. (3rd ed.) Hoboken: John Wiley & Sons, Inc.
 Dixit, J. B. & Kumar, R. (2008). Structured system analysis and design. (Paperback ed.) New Delhi, India: Laxmi Publisher.
 Eugene, F., Brigham & Micliael, & C. Ehrhardt. (2004). Financial management, theory & practice, South Western, USA. p. 862.
 Fabrycky WJ & Banks J. (1967). Procurement and inventory systems: Theory and analysis. New York: Reinhold Publishing Corporation.
 Famodimu B.A. (2015). Cost implication of inventory management: A case study of blending plant at Apapa, Lagos State – A Final Year Project (Unpublished).
 Goldratt, E. (1997). Theory of constraints. Available at: https://www.toolshero.com/strategy/theory-of-constraints-goldratt/.
 Hamisi, S. (2010). Challenges and opportunities of Tanzania’s SMEs in adapting supply chain management. African Journal of Business Management, 5(4), 1266-1276.
 Hatten, T.S. (2012). Principles of small business management. (5Th ed.) New York: South-Western Cengage.
 Heizer J & Rende B. (1999). Operations management. (5th ed.) Upper Saddle River. NJ: Prentice-Hall, (1999).
 Hollier RH & Vrat P. (1978). A proposal for classification of inventory systems. Omega 6(3), 277–279.
 Jain P.K. (2000). Cost accounting. India: Tata McGraw Hill Education.
 James M. Reeve. (2010). Principles of accounting. (11th ed.). Available at: https://www.goodreads.com/book/show/13729262-principles-of-accounting.
 Jessop, D. & Morrison, A. (1994). Storage and supply of materials. (6th ed). London: Financial Times.
 Jhamb, L.C. (1980). A text book of production (Operation) management. New Delhi: Everest Publishing Company, p. 666-678.
 Kulkami, P. V. (1972). Financial management. Bombay, India: Himalaya Publishing House, p. 452.
 Love S. (1979). Inventory control. New York: McGraw Hill Book Company.
 Lyson, K. (2000). Purchasing and supply chain management. London: Pearson Educational Limited.
 Mohamad Y. Jaber. (2009). Inventory management: Non classical views. CRC Press.
 Morgenstern, I. (2007). Introduction theory of inventory control. New England: Markus Zizler.
 Naddor E. (1966). Inventory systems. New York: Wiley.
 Onanaye A.S. (1998) Automated stock control system: A case study of University of Agriculture, Markurdi Store – A Final Year Project, (Unpublished).
 Salamle D. (2000). Modern inventory analysis techniques. American Journal of Health-System Pharmacy, 57, 351-367.
 Sople, V.V. (2010). Logistics management. (2nd ed.). New Delhi: Dorling Kindersley.
 Starr MK & Miller JW. (1975). Inventory control: Theory and practice. New Delhi: Prentice Hall of India.
 Tersine, R. (1982). Principle of inventory and material management. (2nd ed.). North Holland: McGraw.
 Vrat P. (2011). Inventory models and human body food supply chain: Some managerial insights. Industrial and Engineering Journal, II(27), 8–16.
Copyright (c) 2019 International Journal of Engineering and Management Research
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.