Date of Award:

1967

Document Type:

Thesis

Degree Name:

Master of Business Administration (MBA)

Advisor/Chair:

Eugene C. Kartchner

Abstract

A survey of inventory systems was made of 15 randomly selected auto wrecking yards in northern Utah. The specific objectives were to determine what methods auto wrecking yards were using to keep track of their inventory, to determine the mangers' feelings toward inventory control and improvement of their present systems, and to determine the effectiveness of these systems in providing management information. This information was obtained through a questionnaire interview with managers of the yards sampled. The questionnaire was developed by the author using yards outside the sample area to pilot test and help develop the questionnaire.

Results of this survey showed a continuum of systems ranging from the use of memory only up to an elaborate card sort system was being used in inventory control. All managers felt that inventory control was very important and that their present systems could be improved. Time was the limiting factor given for not making needed improvements. Only 60 percent of the mangers were keeping some form of written record. The management information provided by these records consisted mostly of physical information relating to the part available and the condition of these parts. Thirty percent of the managers had a record of capital invested and only 20 percent knew the cost of holding inventory in their yards.

From this survey it was concluded that the majority of the inventory systems were inadequate when compared with the objectives of inventory control. More accurate cost information is needed to calculate and evaluate the profitability of the firm (return on invested capital).

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