Statement of Problem
According to Anwana (2009:4) “Solar energy industry is made up of three aspects which are designing, sizing and installation”.
Agilet solar energy limited does all three of this aspect and as such relates with inventories as Siamese twins. They work in pari-passu, any attempt to separate them will to a great extent pose serious challenges to the management of the company. These inventories which include work tools, materials, inverters, solar panels, etc; represent high investment in all ramification of the firm’s transaction. Due to the large size of inventories maintained, not entirely by choice but by necessity. a considerable amount of funds is committed to inventories.
Judging from the above, it implies that failure to maintain good internal control and inventory system would impair the liquidity position of the company by causing a decrease in the growth prospects and low profitability if pragmatic decisions are not taken and are not fully or efficiently and effectively implemented to act as a basis for the theoretical decisions of the firm.
In reality majority of solar energy companies including Agilet Solar Energy Limited suffers the following setbacks in the realm of business practices.
High Operating cost ,
Materials shortages,
Excessive inventories,
Use of unstandardized practices, processes and antiquated support system.
The listed setback of inventory management above defines the problem of the study.
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