Main Inventory Management Elements on Reducing Storage Cost

Industrial sector in Libya needs modernization process that will upgrade the level of its local industrial Companies, and allowing them to achieve the highest possible level to compete globally. Although there is no sufficient accounting information system in place to calculate the considerably high storage cost, this study pointed out some factors that might affect it. This study, based on an academic and theoretical literatures regarding the factors that believed to affect the process of reducing storage cost as well as conducting some statistical analyses to the study sample which are the workers and managers in mixing and mobilization factory in Zawia. The results shed the light on the number of indications, which can be generalizable to future research, for instance; choosing right suppliers, using Kanban, and purchasing contracts.