Western University College

Department of Business Administration

Research Proposal Assignment

On Moenco

Team members:

1. Mahlet Berhanu ( %)

2. Micheal Abebe ( %)

3. Nathael Wubshet( %)

4. Rediet Zeray ( %)

5. Robel Merso ( %

6. Samuel G/libanos ( %)
Submitted to: Eng. Getnet Belay (M-Stat Instructor) Dr. Natinael (Int. Mkg Instructor)

Date: July 2021

Table of content

1. INTRODUCTION--------------------------------------------------------------------------------3

1.1 company background -----------------------------------------------------------------------------------4

2. LITERATURE REVIEW-----------------------------------------------------------------------4

2.1 Definition of inventory -----------------------------------------------------------------------5

2.2 manufacturing of industry--------------------------------------------------------------------5

2.3 types of inventory -----------------------------------------------------------------------------5

2.3.1 Raw materials--------------------------------------------------------------------------------5

2.3.2 Work in progress ----------------------------------------------------------------------------6

2.3.3 Finished goods -------------------------------------------------------------------------------6

2.3.4 MRO inventory ------------------------------------------------------------------------------6

2.3.5 Buffer inventory------------------------------------------------------------------------------7

2.3.6 Cycle inventory ------------------------------------------------------------------------------7

2.3.7 Decoupling inventory -----------------------------------------------------------------------7

2.3.8 Transit inventory -----------------------------------------------------------------------------7

2.4.1 Impact of inventory in business ------------------------------------------------------------8

2.5 Types of inventory------------------------------------------------------------------------------8

3. PURPOSE OF THE STUDY --------------------------------------------------------------------9

4. STATEMENT OF THE PROBLEM ----------------------------------------------------------9

5. OBJECTIVE OF THE STUDY -----------------------------------------------------------------10

6. THE “5 P APPROACH “IN MARKETING --------------------------------------------------11

7. RESEARCH DESIGN AND REQUIRED SKILLS -----------------------------------------13

8. RESEARCH METHODOLOGY-----------------------------------------------------------------15

9. SKILLS & EXPERTISE NEEDED--------------------------------------------------------------17

10. TIMELINE -----------------------------------------------------------------------------------------18

11. FINDINGS ------------------------------------------------------------------------------------------18

12. BUDJET ----------------------------------------------------------------------------------------------19

List of Tables

Table 1 sample size department

Table 2 planned research activity

Table 3 cost breakdown for undertaking the research

1. Introduction

Inventory is one of the most expensive assets of many companies. Also, its costs can be measured in a
variety of ways, with very different effects on current commodity prices, total profit, income tax and
gross income. In a business environment with strong competitiveness and sustainable profitability it
becomes increasingly difficult. In this world of competition, for an organization to remain competitive
and sustainable, the human resource professionals and strategic planners should collaborate strongly in
designing strategies which is the most important part and crucial of all resources for the survival of an
organization or business firms. To be able to compete having a strong asset management system and its
control is important. To deal with the dynamic nature of the business, foreign academics regularly
conduct research to solve existing problems and prepare their business for opportunities and threats.
However, in our country most business entities have used the system that was once established without
the development of a dynamic environment and it has resulted in a decline in their profits. Therefore,
having a well-designed inventory that can be adjusted to a changing environment is essential to being
competitive and profitable.

1.1Company Background

MOENCO is an affiliate of Inchcape Company, a London based company which is one of the largest
global distributor and retailer of automotive vehicles. It’s vision is to become the most trusted automotive
distributor and retailer, and is currently using the Ignite Strategy of which one
3 of the five elements is giving exceptional customer experience. As an exclusive distributor of Toyota it
is using Toyota Customer Service Philosophy, and other Toyota Policies and Processes.. MOENCO was
established in 1959 and took sole distributorship of Toyota Franchise for Ethiopia in 1968. Since its
establishment, MOENCO has grown in number of products it distributes; its manpower and branch
networks throughout the country. Since its establishment 59 years ago, MOENCO has represents
KOMATSU earth moving equipment, NEW HOLLAND Agricultural Machinery; MAHA vehicle
inspection and Workshop equipment; TOYOTA Tyre; Batteries and many more products in the Ethiopian
market.

In the heart of Addis Ababa, around the area commonly known as Mexico, a small garage with a capital
of 200,000 Ethiopian birr was founded by Mr. Y.D. Lappine 50 years ago in a small rented house. His far
sighted vison became reality with the help of other resourceful people, such as Ato Menasseh Lemma, the
governor of the national bank of Ethiopia, and the boss of imperial insurance company.

Now Moenco has many branches in Ethiopia other than mexico located around Kality Machinery Branch,
Adama, Hawassa 1 and 2, Bahirdar 1 and 2, and Dire Dawa Branch.

MOENCO provides genuine parts and quality service throughout its 8 branches and 12 dealers

Addis Ababa Branch operation has the below listed main functions.

 Customers service section (Reception, Customer Relation & Dispatch and Production).

 Service & Repair Section: responsible for regular service/maintenance and general works

 Body and Paint Section (Body Shop & Paint Shop)

 Quality Control: Responsible for quality assurance of customer vehicles serviced/repaired

 Training Center: Engaged in Technical staffs‟ knowledge and skill development

Definition of terms

2. Literature review

The purpose of this project is to examine the marketing activities. How to improve inventory
management and measurement in MOENCO.
2.1 Definition of Inventory.

Inventory is an accounting term that refers to goods that are in various stages of being made ready for
sale, including:

 Finished goods (that are available to be sold)

 Work-in-progress (meaning in the process of being made)
 Raw materials (to be used to produce more goods that are finished)

 Inventory is generally the largest current asset – items expected to sell within the next year –
a company has.

Inventory refers to all the items, goods, merchandise, and materials held by a business for selling in
the market to earn a profit. Example: If a newspaper vendor uses a vehicle to deliver newspapers to
the customers, only the newspaper will be considered inventory. The vehicle will be treated as an
asset.

2..2 Manufacturing industry

In a manufacturing business, inventory is not only the final product manufactured and ready to sell,
but also the raw materials used in production and the semi-finished goods in the warehouse or on
the factory floor.

Breaking down the definitions

If we break down all the definitions, we can see that there are certain similarities:

Inventory is:
 An asset, tangible or intangible,
 An asset that can be realized for revenue generation or has a value for exchange, or
 An asset which is in process but is meant for sale in the market
2.3 What are the different types of Inventory?
Now, let us focus on some of the types. To make it easier to understand, let’s continue with the
example of a cookie manufacturer:
2.3.1Raw materials
Raw materials consist of all the items that are processed to make the final product. In a  cookie
manufacturing company, the raw materials are items like milk, sugar, and flour that are used in the
different stages of production.

When we talk about raw materials, it is essential to either understand that raw materials used by a
manufacturing company can be sourced from a supplier or be a by-product of a process. In our cookie
manufacturing company, the raw materials will be mostly sourced from various suppliers. However,
in a sugar manufacturing company, only the sugarcane is brought in from different farmers. When it
is processed in the factory to extract the juice, the residual substance is known as bagasse. The juice is
sent for boiling and the bagasse is used as a fuel. Here, the sugarcane, juice, and bagasse will all be
treated as raw materials.

The concept of raw materials as inventory items exists only in the manufacturing industry. In a
trading industry, there is no processing or manufacturing involved, so there are no raw materials.

2.3.2 Work in progress

When raw materials have been sent for processing but have not yet been approved as finished goods,
this stage is known as work in progress. In a cookie manufacturing company, after the raw materials
have been processed and the cookies have been molded, they go for a quality check before they are
passed for final packaging. All the cookies which are waiting for their quality check are considered
work in progress. To put it in simple words, the work in progress category consists of all the items
that have been processed but not sent for sale.
2.3.3 Finished goods
Finished goods are the final items that are ready for sale in the market. These goods have passed
through all stages of production and quality checking. So for the cookie manufacturer, the final
packets of cookies that are sent to the market for selling after undergoing quality checks will be the
finished goods.

Raw materials, semi-finished goods, and finished goods are the three main categories of inventory
that are accounted for in a company’s financial accounts. There are other types as well which are
maintained as a precautionary measure or for some other specific purpose. 
 2.3.4 MRO inventory

MRO stands for Maintenance Repairing and Operating supplies; this type of inventory is mostly
relevant for manufacturing industries. MRO items are not accounted as inventory items in books of
accounts; however, they play a crucial role in the day-to-day working of an organization. MRO
supplies are used for maintenance, repair, and upkeep of the machines, tools, and other equipment
used in the production process. Some examples of MRO items are lubricants, coolants, uniforms and
gloves, nuts, bolts, and screws.

2.3.5 Buffer inventory

In a manufacturing or a trading business, fluctuations and market movements cannot always be predicted.

Such changes can have a negative impact on the sales or production process, which can lead to out-of-
stock situations. Buffer inventory attempts to compensate for this by following the adage that prevention
is better than cure. Buffer inventory (also known as safety stock), consists of the items stored in the
warehouse of a store or a factory to cushion the impact of unexpected shocks. A sudden spike in demand,
delay in transport, or labor strike can be managed if sufficient buffer inventory is maintained.    

2.3.6 Cycle inventory

Cycle inventory is a term used to describe the items that are ordered in lot sizes and on a regular
basis. Cycle inventories are usually materials, which are directly used in the production, or they are
part of some regular process.

2.3.7 Decoupling inventory

Multiple machines carry on most manufacturing. The output of one machine is fed into the next
machine for further processing. However, the process only works smoothly if all the machines work
in tandem. A breakdown in any of the machines can derail the entire process, which is
when decoupling inventory appears. Decoupling inventory consists of items that are kept in reserve to
be processed by another machine if the previous machine fails to produce its usual output. In our
example of cookie manufacturing, after the dough has been molded, it goes to the oven for baking. To
prevent a breakdown in one of the molding machines can delaying the baking process, the
manufacturer might keep some extra pieces of molded dough which can be sent to the oven for
baking while the machine is being repaired.
 2.3.8 Transit inventory

Transit inventory refers to items that are being moved from one location to another, such as raw
materials being transported to the factory by railway or finished goods being transported to the store
by truck.

2.4.1 What is the impact of inventory in businesses

Inventory is a major asset for any manufacturing or trading business, so it is important for business
owners to understand what it really means. In addition to the common definition, certain industries
like manufacturing and service use specialized definitions that account for all of the assets relevant to
that industry. Knowing the different types of inventory, including types that are not specifically used
in accounting can help business owners understand how their inventory is working for them
2.5 Types of inventory

Inventory comes in many shapes, forms and stages. Understanding the types will help you identify it for
valuation and management.

 Merchandise you’re reselling

 Most retailers have goods on the shelves, plus more out back. That’s all inventory.

 Products you’re installing as part of a service

Many types of service businesses sell goods along with their labor. For example, a mechanic typically
sells things like gaskets as part of a job. A gardener charges for the fertilizers they apply. A hairdresser
may stock and sell hair products. Goods like these are inventory, too.

Goods you’re making (manufacturing)

Manufacturers deal with three types of inventory. They are raw materials (which are waiting to be worked
on), work-in-progress (which are being worked on), and finished goods (which are ready for shipping).
You can have many types of inventory

You might sell some products exactly as you bought them, while modifying others. In this instance, you
have merchandise and raw materials. It is easier than you think to overlook inventory. Thinking about the
three types can help you identify it all.

Location of inventory

The inventory you own can be in one of four places:

 On the shelf

It may be on display and ready for sale.

 In storage

It may be out the back of a shop, in a warehouse, or in a work van.

 In transit

It may be in a vehicle between supplier and buyer.

 On consignment

In someone else’s shop, waiting to be sold (some retailers will only buy a product from a
manufacturer or supplier after they have on-sold it).

Looking after inventory

Knowing what inventory you have, and where it is, will help make you a better business person. You’ll be
more aware of where your money is tied up, and you’ll be able to make decisions that protect that
investment. Your next step is to work on how you manage inventory.

3.Purpose of the study

Thee purpose of our study is to understand exactly the types of inventory and manage and number them
properly.
4. Statement of the problem

Inventory management is how you track and control your business' inventory as it is bought,
manufactured, stored, and used. It governs the entire flow of goods — from purchasing right through to
sale — ensuring that you always have the right quantities of the right item in the right location at the right
time.

The purpose of this research Paper will be to attain necessary information and to be able to provide
solutions for the problem associated with the inventory control and management system of the Company,
if any, or appreciate the company’s control and management system, In order to attain this goal the
research raises several problems to start with:

There is a high storage problem. This storage problem is related with the difficulty the warehouse faces
due to scarcity of enough space to handle the inflow of inventory that are sent by the Toyota Company.
Thus, ends up accumulating inventories in the warehouse. Moreover, at the end of the day have no place
to store. This has its own demerits, which are mentioned below. Problems related with how the warehouse
is built (constructed) and, its ability to resist variable weather condition. Different climatic condition may
hinder the warehouse safety for the inventories. Heavy rains may result in damage of the inventories if
appropriate type of warehouse is not built.

Handling bulky amount of inventory has its impact on the amount of profit the company aims to attain. If
slow moving inventories keep on coming in, the warehouse will be forced to handle bulky amount of
Inventories which will affect the company’s profit. Because, it will be hard to sale in the market. The
company is not built up by an efficient inventory management system while in goods are in transit The
company may lose its good will due to delivery of duplicate code products. For instance incase where
there may exist different products with the same code assigned to them. In suchcase customers will be for

5. Objective of the Research

GENERAL OBJECTIVE

The general objective of the proposed study is to assess the inventory control and management and
purchasing procedure of MOENCO and to identify the major problem areas which are indicated in the
system and to propose the possible solution.

SPECIFIC OBJECTIVE
Specific objective of the proposed research are:

 To determine the existing difficulties where more emphasis is required and propose possible
alternative
 Find out the relationship of theoretical approach and objective of inventory control and
management system with the actual practice in MOENCO MOTORS.
 To revise the company’s inventory control and management procedure and to determine the
financial procedures of the company.
 To asses optimum level of inventory in the warehouse

6. The "5 P Approach" in Marketing

Marketing Strategy

A marketing strategy is about developing a good marketing mix. The elements of the mix are ;
Product, Price, Place/channel of distribution, Promotion and Person/process. The mix also involves
selecting the target client/market: Studying the client with respect to his/her buying motive and
behavior, segmentation of the market using relevant bases, evaluating each of the segments, selecting
the appropriate segment as target market.

Product Development

Product development involves decisions with respect to:

What product to produce?

What should the design, model, appearance and style of the

Product be.

What should the brand name of the product be? Comparison Of the product with its competitors
should also be considered. Thus, one should ask questions like: “Can I produce a product with better
quality than others do? Can I provide warranty for My products? Can the design of my product be
better than others? Can I use quality raw material? Can I label my product?”

Selling Price
Price is a ratio reflecting the exchange value of a good or a service, measured in terms of money. The
following questions may clarify the idea of pricing:

My pricing strategy: Should I go for profit maximization in the short-term? Profit optimization in the
long-term? A minimum return on investment? Keeping parity with competition? My pricing methods:
should I follow cost-based pricing? Demand-based pricing? Competition-oriented pricing?
Affordability-based pricing? Or differentiated pricing?The answers to the above questions will help
setting the selling price for each product/service.

Place of Business and Channel of Distribution

The place refers to the MSEs ’location of the business and the channel of distribution chosen to reach
potential customers. One should ask questions like: “Can I get a proper business location not far from
my customers and not too near to my competitors? Can I get proper premises with reasonable
price/rent? What should be the channel of distribution? “Distribution is the physical movement of
goods through a system called the value chain. Distribution channels include wholesaling, retailing,
mail order, catalogue sales, telemarketing, contracting, or working through brokers.

Promotion

The role of promotion is to facilitate exchange between product/service providers and customers.
Commercial enterprises are concerned with attracting customers. Different types of enterprises will
have distinct promotional mixes utilizing a variety of promotional methods. The major promotional
mixes are as follows:

Advertising: is a form of impersonal broadcasting through commercial mass media. Advertising is

the pervasive form of promotion because it is one form that captures our attention. Sales promotion:
is a term used to imply an activity that is specifically designed to induce sales by enhancing the value
for the consumer. This value may be created through volume discounts.

Publicity: is the result of public service announcements or news generated through media.
Newspaper articles, recognition in public affairs, magazine stories and talk-show interviews.

Person: The person (i.e. the entrepreneur) should be competitive enough in terms of: practical
abilities needed to produce the product/service; business management skills; personal characteristics
and situation, commitment, motivation; taking risk.
Research Questions

Based on the above stated problem the research tries to address the following questions.

1. How much MOENCO’s employees understand the RBPE pay system, currently being

practiced in the company?

2. How successful and effective is the implementation of the RBPE pay system in

MOENCO?

3. What are the determinants of the relationship between RBPE pay system and employees’

understanding, motivation, feeling and fairness?

7. Research design and required skills

This chapter focuses on research design and the required skills and expertise for the research

• Description of study area

MOENCO Addis Ababa Branch located around Bole Area is a 3S facility, which means it provides
Vehicle Sales, Parts Sales and Vehicle Service. The Vehicle Service facility has 80 bays and has a
throughput of an average of 60 vehicles per day. There are different types of services like Express,
Maintenance Service, General Repair and Body and Paints works.

• Research Design

A research design provides a framework for the collection and analysis of data. A choice of research
design reflects decisions about the priority being given to the following; expressing causal connections
between variables, generalizing to larger groups of individuals than those actually forming part of the
investigation, understanding behavior and meaning of that behavior in its specific social context and
having a temporal (i.e. over time) appreciation of social phenomena and their interconnections Bryman &
Bell (2007). The researcher used descriptive research design. This design it enables us to be able to
identify and categorize our variables and design of questionnaires such that they can capture all the data
we need from the respondents. The study approached the respondents to find out their expectations and
perceptions of service quality based on the dimensions of the SERVQUAL model.

• Types and sources of data

The research methods that are used in this study are both quantitative and qualitative data. Both primary
and secondary data are used to collect the required information. Structured questionnaires are distributed
to collect the primary data, while secondary sources like past Net Promoter Scores and MOENCO ERP
Data Base were accessed. Population of the study The population of this study consisted of active
customers of MOENCO Addis Ababa Branch Service Department where there were transactions in the
year of 2018. According to secondary data obtained there were 5483 vehicles of customers which are
categorized as per below.

• Total Population by Segment

Segment Number of Vehicles Government 3,200

Private Companies 1,067

Individuals 253

NGOs 963

Total 5,483

Source: MOENCO ERP Data Base

Sample Size

Stratified random sampling was employed to collect information from different segments of customers.
This technique was preferred, because it minimizes bias when dealing segmented populations. With this
technique, the sampling frame can be organized into relatively strata before selecting elements for the
sample. According to Janet (2006), this technique in its specific social context and having a temporal (i.e.
over time) appreciation of social phenomena and their interconnections Bryman & Bell (2007). The
researcher used descriptive research design. This design it enables us to be able to identify and categorize
our variables and design of questionnaires such that they can capture all the data we need from the
respondents. The study approached the respondents to find out their expectations and perceptions of
service quality based on the dimensions of the SERVQUAL model.

• Administering of questionnaires

The questionnaires were completed by customers who came to visit the service center. The expectations
part of questionnaire was conducted when the customers enter the service center and the perception part
just before they exit. This will avoid confusion to the customer between the two parts if they were to fill it
at once. External contracted personnel were used to assist in this to minimize bias, to explain the
questionnaires which were translated to Amharic for ease of understanding. This method also ensures a
high survey completion rate.

8. Research method

To address the issue, a case study has been chosen as a proper research method for this study. This is due
to the fact that there are number of organizations implementing Result Based Performance Evaluation.
Hence, Moenco is selected as a case study organization, in order to make detail investigation. Beside,
case study is selected as it is helpful in using multiple tools and designs Moreover, it is appropriate for
social since research of this kind in which it is hardly possible to get solid responses.

In order to compliment the method chosen, mixed research approach was used. The mixed research
approach was used to identify benefits of both quantitative and qualitative research approaches.

Data Source and Collection Procedure

Primary Data Collection Techniques Questionnaire Primarily data were collect through of questionnaires.
In order to collect the necessary information (responses), both closed and open ended questions was
developed and included in the questionnaire. Interview From four departments 8 employees were
selected for interviews. The interviews are were selected based on their academic qualification and work
experience in the company. Observation The researcher currently working in MOENCO, in the sales
department. I am also one of the members of workers union leaders. It is during my stay in workers union
that RBPE pay system started with in the company 2009. My personal observation as a full participant at
the stage of carrying out of the system reveals the following changing attitudes of employees and union
representatives, which is useful for successful implementation of the system. I, especially, observed that
employees’ understanding and perception of the system determines the effectiveness of the organization
in accomplishing its function. Similarly, as it is discussed elsewhere in the paper, my personal experience
and observation indicated that proper implementation of RBPE pay system benefits both employees and
the company. Otherwise it could amount to waste of time.

Secondary Data Sources The Secondary data were collected from annual report; Human Recourse
Department recorded data, journals, different books and research papers on various relevant RBPE issues,
the internet and brochures.

Sampling techniques

To select a sample for the study, sampling frame is required for selection of different department from the
total 341 employees of MOENCO head office. The researcher employed purposive sampling technique
considering respondents’ ability to provide data that will help to answer the research questions

Sample size For selecting the above mentioned population researcher used purposive sampling technique.
Was used sixty respondents were selected as a representative sample of the target population from four
different departments :Marketing and Sales Department, Human Recourse Department, After Sales
Department and Finance and Import Control department. Data gathering through questionnaire. The total
number of respondents selected from each department corresponds to the total number of workers in the
department.

Data Analysis The data analysis was undertaken right after the data collection from the field, during data
analysis and interpretation; primary and secondary data were combined in explaining, confirming and
enriching data from one approach to another. Hence, primary data obtained from questionnaires and
interviews were used to explain issues related to the positive and negative prospects of RBPE. The
analysis of the data was employed qualitative methods as well as discussing and interpreting facts.

The data was presented by using tools like tables, charts and percentages. Moreover, secondary data
obtained from various data sources were organized and analyzed to compliment the survey results from
primary data sources.

Sample Size Department

Department No. of Employees Sample size

Auto service 159 32
Engineering service for large 24 5
 machine
Automotive sales 12 2
Spare part 52 10
Heavy machinery sale 11 2
Finance 30 6
Human Resource 60 12
Manager 70 14
Guards and cleaners 30 6
Total sampling 89
Total No. 448

Ethical Consideration The researcher selected employees were directly contacted by the researcher,
first, through the telephone and face to face communication and the research purposes including
number of employees to be questionnaire and interviewed respondents, the anticipated time it will
take, anonymity and confidentiality of the company and individuals to be participated were explained.
In addition, the respondents are also informed that they have the right to participate or decline at any
point and they were guaranteed about the confidentiality and anonymity of data, company and
individuals.

9.Skills and Expertise needed to conduct the Research

Since we don’t have much experience in research before this we have had tried to carefully learn and do
our research. So we have eyed a few other researches and papers.

We have also taken advice and guidance from others who have done their researches previously.

 Some of the other skill sets we had that helped us a lot with the writing of this research paper are:
 Data Collection
 Analysis of information from previous researches
 Analysis of information from the internet
 Critical Thinking
 Interviewing others who have done researches before
 Interviewing workers in MOENCO

10. Timeline
 Ser. Planned activity time
No.
1 Developing the literature review June 09 , 2021
2 Pilot test of questionnaire to determine its suitability July 02 ,2021
3 Correct questionnaire , conducting interview and July 05 , 2021
collection of data
4 Presentation analysis, interpretation of data , July 10 , 2021
summarization of data , drawing conclusion , and
forwarding recommendation
5 Preliminary research report writing & submission for July 15 , 2021
advisor’s review
6 Incorporating comments if any , and finalizing the July 19 , 2021
research paper , publication and submission of research
paper

11. FINDINGS
Based on the data collected and analyzed we came up with the following findings:
 Regarding employees’ sex and age majority of employees are male and most of the employees
are young. (Which is 20-39 years). In addition majority of employees are not senior but most of
the employee are professionals i.e. they have diploma, degree and above

 The company has different polices like purchasing policies and procedure and they are obliged to
follow it strictly.
 Due to repetitive work load employees tend to mix up orders.
 The company follow seven TOYOTA storage techniques called kaizen storage technique

 Stare within reach

 Storage by product
 Storage by movement
 Separate location for each P/N
 Vertical storage
  Heavy parts stored down low
 Irregularity control.

12. Budget

No Description Budget in the ETB

1 Printing 100
2 Internet Fee 150
3 Telephone Fee 100
4
Total Cost 350

Reference
 R. Tony Arnold et al. introduction to Material Management, Pearson, India, 2007
 Barry Render and Jay Hazier. Principles of Operation Management, 2 nded. Prentice Hall, New
Jersey, 1997.
 G.Handley and T.M Within; Analysis of Inventory System. Prentice-Hall, India, C. India, 1979
 Burton E.Lipman. How to control and Reduce Inventory. Prentice-Hall, INC, India 1981
 Paul H.zipkin.Foundation of inventory Management; McGraw Hill, Boston, 2000.