@article{10.11648/j.ebm.20220804.12,
  author = {Aklilu Assefa Adato},
  title = {Evaluating the Effectiveness of Inventory Management Practice and Its’ Challenges on Manufacturing Companies in Yirgalem Agro-Industrial Park, Ethiopia},
  journal = {European Business & Management},
  volume = {8},
  number = {4},
  pages = {89-98},
  doi = {10.11648/j.ebm.20220804.12},
  url = {https://doi.org/10.11648/j.ebm.20220804.12},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ebm.20220804.12},
  abstract = {The goal of managing inventory is to maintain optimum level balance within a manufacturing firm because excess and inadequate inventory are not desirable. Effective inventory management is leads the high success of any company specifically in the manufacturing industry is undeniable. The primary purpose of this study was to evaluate the effectiveness of inventory management practices and the challenges of manufacturing companies operating in Yirgalem agro-industrial parks, Ethiopia. The descriptive research design with a mixed approach was adopted. Primary and secondary data source was used. Primary data collected through open and closed-ended questionnaires, interviews, and field observation methods. The secondary data was collected from empirical publications research and books. Total of 18 respondents’ were selected purposively. Percentage, mean average, and narrative techniques were used to analyze the collected data. The result revealed that, the effectiveness of inventory management practice in manufacturing companies operating in Yirgalem agro-industrial parks was moderate. Also, as the result showed the companies adopted EOQ, JIT, ABC, and MRP and also both computerized and manual inventory techniques. The study recommended that, the companies should improve the inventory management practice effectiveness level to be more successful. However, the trend of classifying the inventory items as classes A, B, and C, based on cost volume should be improved. Besides, the study found that, the supply chain relationship of companies was good, but needs to create more linkage with suppliers to get sufficient raw material for production. Additional investors should be attracted and motivated by governments through good advertising about the Yirgalem agro-industrial park, implementing appropriate tax strategy, and may facilitate long-term loan for local investors to generate sufficient intended economic contribution for the country, Ethiopia.},
 year = {2022}
}

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TY  - JOUR
T1  - Evaluating the Effectiveness of Inventory Management Practice and Its’ Challenges on Manufacturing Companies in Yirgalem Agro-Industrial Park, Ethiopia
AU  - Aklilu Assefa Adato
Y1  - 2022/09/27
PY  - 2022
N1  - https://doi.org/10.11648/j.ebm.20220804.12
DO  - 10.11648/j.ebm.20220804.12
T2  - European Business & Management
JF  - European Business & Management
JO  - European Business & Management
SP  - 89
EP  - 98
PB  - Science Publishing Group
SN  - 2575-5811
UR  - https://doi.org/10.11648/j.ebm.20220804.12
AB  - The goal of managing inventory is to maintain optimum level balance within a manufacturing firm because excess and inadequate inventory are not desirable. Effective inventory management is leads the high success of any company specifically in the manufacturing industry is undeniable. The primary purpose of this study was to evaluate the effectiveness of inventory management practices and the challenges of manufacturing companies operating in Yirgalem agro-industrial parks, Ethiopia. The descriptive research design with a mixed approach was adopted. Primary and secondary data source was used. Primary data collected through open and closed-ended questionnaires, interviews, and field observation methods. The secondary data was collected from empirical publications research and books. Total of 18 respondents’ were selected purposively. Percentage, mean average, and narrative techniques were used to analyze the collected data. The result revealed that, the effectiveness of inventory management practice in manufacturing companies operating in Yirgalem agro-industrial parks was moderate. Also, as the result showed the companies adopted EOQ, JIT, ABC, and MRP and also both computerized and manual inventory techniques. The study recommended that, the companies should improve the inventory management practice effectiveness level to be more successful. However, the trend of classifying the inventory items as classes A, B, and C, based on cost volume should be improved. Besides, the study found that, the supply chain relationship of companies was good, but needs to create more linkage with suppliers to get sufficient raw material for production. Additional investors should be attracted and motivated by governments through good advertising about the Yirgalem agro-industrial park, implementing appropriate tax strategy, and may facilitate long-term loan for local investors to generate sufficient intended economic contribution for the country, Ethiopia.
VL  - 8
IS  - 4
ER  - 

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