Synthesis and Relevance to the Study

With the studies mentioned, inventories represent those items which are either

held for sale or those items held for use in the process of manufacturing or in the form

of materials, which are yet to be utilized. Firms use inventory management techniques

to control their investment in inventories. It involves the recording and monitoring of

stock level, forecasting future demand and deciding on when and how to order

(Adeyemi and Salami, 2010).

Thus, a good inventory management may contribute to the operational efficiency

as well as the profitability of a company. However, inventory management does not

make decisions or manage operations. It only provides information to managers who

make more accurate and timely decisions to manage their operations Narayan and

Subramanian (2008).

Ager, De Guzman, and Erni (2009) finds that the inventory management

practices of the company were divided into seven aspects, namely procurement of raw

materials, storage, issuance to production, finished goods receive from production, sold

inventories, spoiled inventories, inventory control, and internal control. With these

different aspects of inventory management practices as tools for evaluation, the

researchers may be able to assess and compare the inventory management techniques

employed by Gardenia and Monde Nissin Corporation and its impact on operational

efficiency.