A THESIS SUBMITTED TO THE SCHOOL OF POST GRADUATE STUDIES OF ARBAMINCH UNIVERSITY IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE DEGREE OF MASTER OF BUSINESS ADMINISTRATION

Abstract

The objective of the study was to assessment of inventory management practice of Arba Minch Polytechnic and Satellite Institute. An explanatory research design through quantitative and qualitative approach was employed. A total of 270 employees were participated in the survey. The necessary primary and secondary data was collected through open-ended and clothed – ended questionnaires and extracted data from recorded documents in the institute. Researcher used explanatory statistics analysis. The study's findings revealed that: the institute's inventory purchase plan is not based on a scientific, the inventory purchase plan lacks consistency with their annual plan and there is a rush purchase order as a result. Physical inventory management procedures did not account for inventory location and arrangement, and there was insufficient and appropriate storage for each item of inventory. Inventory control technique: the institute inventory was used annually, the storekeeper was not used as a bin and stock cared aid for recording and documentation, there was no awareness creation for staff about inventory usage, inventory inspection activities were ineffective, and inventory items were not replenished at the appropriate time or place. Available physical space for inventory; the store setup that develops based on inventory types, When inventory properly recorded and handled using a bin card, a fixed asset users' control card, a stock material record card, and the stores renewed on the renewal period in general the systems were weak. The researcher suggested that in order to improve inventory management practices, top management and concerned bodies focus on purchasing plans, physical inventory management, and inventory control techniques, to enhance inventory management performance in the institutio