An inventory management optimization strategy for LittyMart enterprise
This research initially analyzed the current state of the inventory management practices at LittyMart. LittyMart is a limited liability Company that deals in items such as kitchen napkins and underwear for both sexes. This project aims to help optimize the firm’s inventory by creating a simple and efficient tool. Amid the strength of the firm are a good marketing strategy, diverse product list, and good relationship with trading partners. The Weakness of the firm includes the occurrence of holding excesses inventory and stock-outs. The firm also has the opportunity to diversify into other products and also open stores in different market locations. Threats of competition, changes in consumer behavior and supplier manufacturing terms are imminent. The firms operate in the Fast Moving Consumer Goods (FMCG) of Ghana’s informal sector, more specifically, Mokola, which is the number one goods trading hub in the country. The needs analysis used interviews and observations as the methods of data collection and the findings show that LittyMart has captured a considerable market share due to its long years of operation. The results also indicate shortfalls in managing inventory. The survey purposively selected workers of LittyMart for the study, as well as customers and some competitors. Workers were interviewed and surveyed to help the researcher understand the current inventory practices of LittyMart. In addition to that, direct and indirect Competitors, as well as customers, were interviewed to understand the macro environment of the firm. The literature reviewed focused on inventory optimization strategies relevant to Small and medium enterprises (SME’s). The tool was built featuring the ABC and EOQ models. The final tool was then developed using Microsoft Excel, which is stored on Google drive. Google drive permits individuals to log in to make changes. The tool, when implemented, will reduce overstocking and inventory cost thereby increasing profitability.
Applied Project submitted to the Department of Business Administration, Ashesi University, in partial fulfillment of Bachelor of Science degree in Business Administration, April 2018
inventory management, inventory optimization