Effects of Inventory Control Management Systems on Organization Performance in Tanzania Manufacturing Industry- A Case Study of Food and Beverage Manufacturing Company in Mwanza City

Abstract

This study was about the effect of inventory control management systems on organization performance in Tanzania manufacturing industry: a case study of food and beverage manufacturing company in Mwanza City. The specific objectives of the study were to: determine the types and purposes of inventory control management practices followed ascertain the influence of inventory control management practices on organizational performance and determine how technology adopted in operationalization of inventory control management practices affect organization performance. In order to accomplish the objectives, qualitative approach methodwas adopted. Using purposive sampling, five participants in the inventory and production department were selected and interviewed. Data was analyzed using content analysis techniques with the aid of Nvivo Qualitative Analysis software. Other data was collected from documentary review company and industry published reports. The findings of the study revealed that the food and beverage manufacturing company had evidence of different types of inventories which included raw materials, work-in-progress and finished goods managed under FIFO system for cost reduction and production efficiency. It was also evident that the company carried inventory control management using perpetual inventory system done on periodic basis and inventory system is combined with acomputerized database of inventory quantities at various locations for up-dating in real time by store and warehouse using barcode scanners. It was also revealed that inventory control management system using principles of Economic order quantity [EOQ]affects organizational performance in terms of cost reduction, production efficiency, flexibility and profitability. The study recommends an implementation of new practices/models such as Vendor Managed Inventory (VMI) in the company’s inventory control management.