This study aimed to analyze loss due to poor or improper inventory management in the Bahir Dar Textile Share Company (BDTSC). The study sought to find the inventory management techniques used by the spinning section at BDTSC established the level of effectiveness of inventory management.
It also determined the strength and weakness of the company, inventories the control system used, the police and procedure used, assessing the general material handling strategy in BDTSC at spinning section, the role of kaizen in the organization and the coordination of one department to the other in the organization.
The study adopted both a statistically and descriptive research design. The target population was store department, production department, kaizen case team department, planning, and programming department, marketing and selling department, cost and budgeting department, and purchase department.
Table of Contents
Chapter One: Introduction
1.1 Background of the study
1.2 Background of Host Company
1.3 Mission, vision and objective of the company
1.3.1 Mission
1.3.2 Vision
1.3.3 Objective of the company
1.4 Statement of the problem
1.5 Objective of the project
1.5.1 General objective of the project
1.5.2 Specific objective
1.6 Some research questions
1.7 Significance of the study
1.8 Scope of the study
1.9 General work flow of spinning section in BDTSC
1.10 Limitation of the study
1.11 Structure of the study
2 Chapter Two: Literature Review
2.1 Inventory
2.2 Inventory Management
2.3 Scope of the inventory management
2.4 Nature of inventories
2.5 Needs of inventory
2.6 Types of Inventories
2.6.1 Cycle stock
2.6.2 Safety or buffer stock
2.6.3 Seasonal stock
2.6.4 Dead stock
2.7 Requirement for effective inventory management
2.7.1 Inventory count (keep track) the inventory
2.7.2 Demand for cast and lead time information
2.7.3 Cost information holding inventories
2.7.4 Ordering cost
2.8 Inventory management Techniques
2.8.1 Economic order quantity
2.8.2 TWO BIN Method:
2.8.3 FIXED PERIOD ORDERING:
2.8.4 THREE BIN Method:
2.8.5 FIXED ORDER QUANTITY:
2.8.6 Proper storage
2.8.7 Just –in-time inventory control:-
2.8.8 Out sourcing (ABC analysis)
2.9 Inventory control procedures
2.10 Impact of Improper Management of Inventory
2.11 Material Storage Losses
3 Chapter Three: Research methodology and Design
3.1 Data type
3.2 Subject of the study
3.3 Method of data collection
3.4 Source of data collection
3.5 Sample size
3.6 Sampling technique
3.7 Data presentation and Analyzing
3.8 Method of presenting the outcome
4 Chapter Four: Data Presentation, Analysis and Interpretation
4.1 Respondents’ Personal Information
4.1.1 Respondents’ Sex distribution for the returned respondents
4.1.2 Respondents’ educational level
4.1.3 Respondents’ age distribution
4.2 Nature’s of inventory management of the Organization
4.3 The policies and procedures of inventory management
4.4 Inventory control system
4.5 Inventory management techniques of the organization
4.6 Kaizen and BDTSC
4.7 Any general comment regarding inventory management in the organization (Source: Questionnaire)
4.8 Formula and conversion plan of spinning section
4.9 General structure of the organizations material handling strategy
4.10 Downtime of the organization for 2008
4.11 Economic order quantity of the organization
5 Chapter Five: Summary, Conclusion and Recommendation
5.1 Summary of Findings
5.2 Conclusion
5.3 Recommendation
Objectives and Topics
The primary objective of this thesis is to perform a comprehensive loss analysis within the spinning section of Bahir Dar Textile Share Company (BDTSC) that results from poor or improper inventory management. The research seeks to identify inventory inefficiencies, assess material handling strategies, and suggest improvements to reduce operational downtime and costs.
- Analysis of inventory management techniques and control systems currently in use at BDTSC.
- Evaluation of the relationship between inventory handling practices and production/sales losses.
- Assessment of the role of Kaizen in optimizing operational efficiency.
- Calculation of Economic Order Quantity (EOQ) to determine optimal inventory replenishment levels.
Excerpt from the Book
4.10 Downtime of the organization for 2008
From the table 4.21 it is clear that there is 3,180.52 hour loss in the organization due to plan and unplanned downtime. These leads to the loss of production and sale 1,671,254.336 k.g and 89,612,658 birr respectively. To compare these loss to the plan the organization loss 40.70% and 28.33% 0f production and sale due to downtime.
Summary of Chapters
Chapter One: Introduction: Provides background on inventory management, the history of BDTSC, statement of the research problem, objectives, and the scope of the study.
Chapter Two: Literature Review: Discusses theoretical aspects of inventory management, including nature, types, and effective techniques like EOQ and JIT.
Chapter Three: Research methodology and Design: Details the research design, data collection methods (primary/secondary), and sampling techniques used to gather insights from BDTSC employees.
Chapter Four: Data Presentation, Analysis and Interpretation: Presents the analyzed data regarding inventory policies, downtime causes, and specific material losses at the spinning section.
Chapter Five: Summary, Conclusion and Recommendation: Synthesizes the major findings, concludes on the impacts of inventory mismanagement, and offers specific recommendations for improvement.
Keywords
Inventory, inventory management, Order Quantity, two bin system, three bin system, fixed order, fixed quantity, proper storage, JIT, safety stock, dead stock, seasonal stock
Frequently Asked Questions
What is the core focus of this research?
The research focuses on conducting a loss analysis at Bahir Dar Textile Share Company (BDTSC), specifically within the spinning section, attributed to improper inventory management practices.
What are the central themes of the work?
The study centers on inventory control, material handling strategies, operational downtime analysis, and the application of optimization techniques like EOQ.
What is the primary objective of this thesis?
The main goal is to determine the company's strengths and weaknesses regarding inventory and to suggest actionable ways to minimize production and sales losses.
Which research methodology is employed?
The study uses both quantitative and descriptive research designs, employing a non-probability judgmental sampling technique to survey employees across relevant departments.
What does the main body cover?
The main body covers a theoretical review, the research methodology, data analysis of survey results, downtime statistics, and technical calculations related to inventory and production loss.
Which keywords best characterize this work?
Key terms include inventory management, Order Quantity, two bin system, three bin system, fixed order, fixed quantity, proper storage, JIT, safety stock, dead stock, and seasonal stock.
How is downtime quantified in this study?
Downtime is quantified by analyzing the total hours lost due to both planned and unplanned events, translating these into production losses (in kg) and monetary losses (in birr) against the organization's set plans.
What role does Kaizen play according to the findings?
The study identifies that Kaizen is recognized as applicable by the staff, potentially aiding in reducing costs, improving productivity, and shortening lead times within the spinning section.
- Quote paper
- Eyob Minbale (Author), 2020, Inventory Management in Textile and Apparel Merchandising, Munich, GRIN Verlag, https://www.grin.com/document/924344
