Materials management and inventory costs management in organizations: a case study of Britania Allied Industries Ltd. Uganda

Abstract

One of the most frequently overlooked qualities of materials is that it represents money's worth. Organizations usually accord more respect and attention to $1 in cash than will $5 in goods. It is this odd trait of human nature hat intrigued the researcher to investigate the essence of proper materials management on the inventory costs management system of an organization. The research objectives were: a) To assess the effectiveness and the efficiency of materials management in organizations. b) To evaluate the various techniques of inventory costs management in organizations. c) To establish the essence of proper materials management in an organization's inventory costs management system. This study relied on secondary data from Kampala International University library and other public libraries. Use of document analysis and extensive reviewing of different works by authors collected the data. Data was analyzed by making inferences to the available literatures in order to compare and contrast different opinions. Basing on the findings, the researcher found out that there is a positive relationship between the two variables and recommended the following: a) A well-established materials management criterion should be tailored and undertaken. b) Order sizes that minimize the overall inventory cost should always be determined. c) Factors determining the level of inventory should be properly analyzed. d) Organizations must also establish a strong internal control system on stock. e) Organizations must also •endeavor to establish an independent purchasing department.