Inventory Management Systems in PHP

Abstract:

Inventory management is a challenging problem area in supply chain management. Companies need to have inventories in warehouses in order to ful fil customer demand, meanwhile these inventories have holding costs and this is frozen fund that can be lost. Therefore, the task of inventory management is to find the quantity of inventories that will ful fil the demand, avoiding overstocks. This paper presents a case study for the steel manufacturing industry (Small Scale Industry) on inventory management. The relationship between the inventory management and company performance was determined based on inventory days and return on asset (ROA) analysis. The research found that company X had a few inventory problems such as unorganized inventory arrangement, large amount of inventory days / no cycle counting and no accurate records balance due to unskilled workers. The study also proved that there was a significant relationship between return on asset (ROA) and inventory days. This paper also provides recommendation to the company and for further research.

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