A dissertation submitted to Mzumbe University, Dar es Salaam Campus College in partial fulfillment of the requirements for the award of Masters of Science Degree in Procurement and Supply Chain Management (MSc. PSCM)This research is generally about the practice of setting inventory levels in Tanzania’s private organizations with particular reference to Shoprite Tanzania. The researcher briefly explains some of the general problems facing the stores control functions in many organizations and went on to the background of the subject matter where some of the activities of the organizations were highlighted. Among the problems facing stores control systems highlighted by the researcher include overstocking and sometimes under stocking, pilferages, deterioration, obsolesce and so on. These problems are caused by a number of reasons including failure in setting suitable inventory levels and putting them into practice as well. This is due to the fact that, though some scholars’ have done efforts on it, the most references considered are picked from developed countries. The research work further reviewed related literatures on the subject matter to sample the opinions of various authors. The review of related literatures centered on inventory control, stock control, products, reasons for holding stock, stores control, stock taking and stock checking, the real cost of holding inventory and many others.The researcher noted that, there was a consensus among the authors on the issue as mentioned above. The study employed drafted questionnaires, personal interviews, and the use of secondary data as the major instruments for gathering information. The findings indicate that setting of inventory levels is a professional task and therefore specified trained personnel are responsible for it, but the application of inventory management techniques is the responsibility of all Shoprite community members. Shoprite benefited by an average inventory level it prefers though there are constant challenges. Based on the major findings from the field, conclusions were drawn and recommendations made on how to ensure effective management of stocks, not only in private organizations but also in all business organizations in the country to forestall either stock out, over stocking or under stockings.