Evaluation of Inventory Management Practice (The Case of Anbessa City Bus Service Enterprise, Addis Ababa)

Abstract

The main purpose of this study was to evaluate inventory management practice in the case of Anbessa City Bus Service Enterprise (ACBSE), Addis Ababa. The study employed explanatory research design with mixed research approach. A sample 94 employees are selected by using purposive sampling method from the population of 143 employees of the enterprise concerning to inventory management. For this study mainly primary data were collected by using structured questionnaire, besides that secondary data were also gathered form the documents of the bureau. The collected data were analyzed by using descriptive statistics and regression model by using SPSS version 24. The major findings of the study were internal control and information technology have positive impact and long bureaucratic process and inventory holding cost have negative impact on the effectiveness of inventory management practice of the bureau. The researcher concluded that poor inventory planning, improper counting of inventory, lack of proper use of technology and long bureaucratic processes were hampering the inventory management practice of the enterprise. Hence the researcher recommended that proper use of existing technology, use of new technologies in inventory management and employees needs to train for the effective implementation technology. Further researcher recommended that proper planning and coordination among the departments and use of technology to avoid stock outs, delays in procuring inventory items, strong internal controls and easing bureaucratic process for effective implementation of the inventory management practice.