Improving Inventory Management at SUR Construction Company

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Addis Ababa University


The objective of this study was to analyze the inventory management practices in the organization in order to identify the inventory management challenges and its contributing factors for challenges and recommend solutions for improvement. It was carried out using case study at Sur Construction Company. In this organization, stocks outs, rush ordering, unplanned and urgent purchasing items observed frequently while high non-moving and obsolescence was available as a problem. In this research sample of 120 employees was in used by purposive sampling technique and the return rate was 98 which is 82% response rate. Questionnaires, interviews, and secondary data from reports and internet was used as data collection instrument, analyzed by Microsoft excel software applying descriptive statistics. According to these data, the overall inventory practice was not effective; and the major inventory management challenge was the availability of item on time in complete set. The finding shows that the main contributing factor for this problem was staff capacity having skill gap and awareness in implementing inventory management technique. Accordingly, staff development and capacity enhancement strategy including training, empowerment and motivation scheme design was recommended. Key Words: Inventory, Construction, Obsolescence, Staff capacity



management at SUR