Inventory management and profitability in new vision printing and publishing Company
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Date
2006-07
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Kampala International University, College of Economics and Management
Kampala International University, College of Economics and Management
Kampala International University, College of Economics and Management
Abstract
Good managers carefully control inventory because it may represent a large part of the assets of the business. So effective inventory management system is important for business organization in their growth and survival, in manufacturing business where there are three major types of inventories: - Raw materials, goods in process of manufacture, and finished goods, all three classes of inventory are included in the current asset section of the balance sheet. Therefore if the costs are not controlled through proper inventory management systems the costs of production will go higher leading to low profits. The study was aimed at; “Establishing the relationship between inventory management systems and profitability of the company. • Establishing the inventory management systems in the company. • Establishing inventory control in the company. The study examined inventory management using a sample of 28 respondents using the questionnaire method of data collection and results revealed that the inventory management system itself was not effective in the company hence total cost of production leading to low profits of the company. It was concluded that inventory management in the company need improvement in areas noted, like storage, and recommendations included computerization of the stores, segregation of duties, perpetual stock taking and training of staff.
Description
A research report submitted to the College of Economics and Management in partial fulfillment of the requirement for the award of a Bachelors Degree in Business Administration of Kampala international University
Keywords
Inventory management, profitability, new vision