Inventory Management Practices and Related Challenges of Government Institutions, A Survey Study Conducted on the Wolaita Sodo University, Southern Ethiopia

Fanuel Bosha Bonga


One of the most important parts of materials management is inventory management and which has been observed that there is lack of effective and efficient inventory management practices in some institutions in Ethiopia as a result most institutions are not successful. The purpose of this study was to assess the existing inventory management practices and internal controls of a Wolita Sodo University in Ethiopia. The study employed interview questions and administered questionnaire and observation to collect primary data from the administrative staff of the university. Purposive sampling approach was employed to identify sixteen employees directly involved in inventory management operations. The quantitative data was analyzed with the aid of Statistical Package for Social Sciences (SPSS) version 20. The study revealed that the university has poor inventory management practices and for this end it is better if the university uses scientific methods of managing inventories and should modernize and computerize the inventory management and recording procedures in order  to meet customer demands and for smooth functioning of the institution. Moreover, it was revealed that, the company was faced with serious long lead time challenges due to bureaucratic procedures in ordering parts leading to cancellation of purchase orders and losing customers.

Keywords: Inventory, Inventory management, lead time, internal control

DOI: 10.7176/IEL/9-4-01

Publication date:May 31st 2019

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ISSN (Paper)2224-6096 ISSN (Online)2225-0581

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