A Dissertation Submitted in Partial/Fulfilment of the Requirements for the
Degree of Master of Science of Procurement and Supply Chain Management
(MSc PSCM) of Mzumbe University.
The purpose of this study was to assess the effectiveness of inventory control system
in Kilwa District Council. The sample for the study constituted fourty (40) members
of stuff from Kilwa District Council Headquarters. Those officials were interviewed
in order to get an imperical data on the current inventory control practice in the
public sector.
The study revealded that 65 percent of the respondents agreed that the council
received services or products at the right time, orders were received complete, were
damage free, were filled accurately, and were billed accurately. This implies that the
inventory control system has been successful.
Based on reliability of inventory management system in Kilwa district council, the
results show that during 2011/2012 financial year, there was one old facility, one
balance and no new facility. During 2012/2013 financial year there were two new
facilities, no old facility, and two balance facilities. The study further found that,
during 2013/2014 finacial year there were two old facilities, were two new facilities,
and four balance facilities. This implies that inventory control system in Kilwa
district council has become reliable.
The study further revealed that, Kilwa district council has improved all inventory
control systems through operating activities at a minimum cost. The techniques used
in Kilwa District Council to reduce cost in inventory control system includes base
cycle stocks on economics, reduced order transaction costs, reduced acquisition lead
times, implemented joint procurement for purchased products, minimized purchase,
and maintained accurate inventory balances.
Recommendations and policy implications for this study includes allocation of of
sufficient fund to stores department, strengtherning and impleneting the procurement
training workshop and short courses to council staff and recruting more staff. Also,
Kilwa district council is advised to use computerized system to ensure proper
documentation of items.