Abstract:
This study conducted to assess factors affecting inventory management practice, in case of Bedele
Brewery Factory. A lot of resources have been devoted into research in the inventory management
practices of organizations. It represents one of the most important assets that most businesses
possess. In the manufacturing companies, nearly 60% to 70% of the total funds employed are tied
up in current assets, of which inventory is the most significant component. The brewery sector is
a growing sector which is gaining its importance in recent past. Not much amount of work has
been done on this area of managing inventories in brewery sector. The objective of the study was
to find out the factors those affect inventory management practice in Bedelle brewery factory. The
study had its own significance for brewery factories. The study was carried out through descriptive
survey design and data was collected through questionnaires. The study was used census/total
enumeration method since the study population limited in number, 134, so no need of sampling.
Descriptive and inferential statistical tools: mean, percentage, frequency, correlation and multiple
regressions were used to analyze collected data. Multiple linear regression analysis was used to
show the relationship between the dependent variable (inventory management practice) and the
independent variables (staff competency, bureaucratic procurement practice, budget &
documentation/stock record) and recommendation was provided based on the findings of the study.
Thus, this study find out that all the independent variables (staff competency, bureaucratic
procurement practice,budget and documentation) had a positive significant interference with
inventory management practices of the brewery (with p<0.05, and positive regression
coefficients). Therefore, the brewery should have to pay a great concern for the indicated inventory
management functions in order to maintain and improve the inventory management practices of
the brewery.
