OPTIMIZATION OF EFFECTIVE INVEBTORY CONTROL AND MANAGEMENT: A CASE STUDY OF VINTAGE BEAUTY INDUSTRY.

Abstract

Inventory management being the significant part of the supply chain drives the maximum monetary value. The purpose of this study is to optimize an inventory for Vintage beauty industry by reducing the inventory cost and developing an inventory management system. The Quantitative approach is used for the research work. The inventory cost reduction is performed by application of EOQ model and excel visual basics is used for Inventory Management system. The author intends to determine the appropriate order quantity and reorder point by implementation of EOQ (Economic Order Quantity) model. As technology advances, businesses must manage their inventories quickly, precisely, and accurately to support their operations. Therefore, the development of inventory management system is the second part of the research which smoothens the material flow and rings transparency in it by tracking the material movement and reducing the human errors. For various manufacturing industries in Nigeria, inventory remains the prevalent asset on the balance sheet at any given time; therefore, there is the need for it to be properly managed. The researcher identifies some of the challenges hindering effective inventory management and control using Vintage beauty industry as a case study. Although, effectiveness was seen in this research as the ability to achieve stated inventory levels, judge in terms of financial measures like inventory turnover. And for any company to claim to be effective, its inventory management decisions made by management must be ascertained and certified. The result of the investigation provides economic order quantities, reorder points for all the items and IMS developed. Furthermore, the regression analysis enhances the value of the findings which shows two independent variables which are unit price and holding cost are significantly correlated with the Inventory cost. In this case, Holding Cost is considered as the most important factor in terms of affecting the Inventory Cost.