An evaluation of the inventory management system in a Maltese manufacturing company : a case study

Abstract

Purpose: The main purpose of this study is to analyse the Case Company’s inventory management systems, determine their effectiveness and to identify any areas of weaknesses within such systems. This study then makes recommendations as to how these shortcomings may be addressed by the Company. Design: In answering the research objectives, a qualitative case study approach was adopted. Both primary and secondary data sources were used to gather the required information. Primary data was obtained through a period of observation within the Case Company and through semi-structured interviews conducted with some of the Company’s employees. Secondary data was collected from various sources such as books, published journals and research reports. Findings: The findings of this study revealed that the Case Company does not have adequate systems in place to effectively manage its inventory. As a result, the Company was having difficulties with holding the appropriate amount of inventory. The findings revealed that one of the biggest issues was the lack of an automated system that records inventory levels and keeps track of its movements. Conclusion: The ineffective management of inventory is impacting the overall performance of the Company. Therefore, the Company should update its systems to manage its inventory better and take advantage of the improvements that such systems bring to the Company’s performance. Many recommendations have been made as to how the Company can go about updating its systems. Value: Despite this study being a case study focusing only on the inventory management of the Case Company, the effective management of inventory is crucial for the success of all companies. Therefore, the findings of this study and the recommendations made could assist other companies to analyse the processes relating to their inventory management and enact the necessary changes to improve their systems.