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.
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