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As inventories are elements of the assets in the factory, which accounts larger portion of the total investment, it requires sound inventory control system in order to make considerable cost saving and providing operational flexibilities to the factory.Storage is also one among the main factors affecting the success of an organization. It shows the degree to which operating units will be supplied satisfactorily. The larger the storage area, the more efficient space and equipment can be used, the narrow the storage area the larger the spoilage and deterioration of the materials and equipment.

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Agere Kibret Tsegaye, Bachelor of Art in Procurement and Supply Management, Wollega University, 2011/12, currently working in a Private organization.

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