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Objective 1. What is the amount of economic order of the Aref Contracting Company ?
Objective 2. Does the company buy in the amount of the economic order?
Objective 3. What basic inventory models are most common for contractor companies and manufacturing companies?
Objective 4. What should be the size of the inventory?
5. Is there a link between inventory levels and profitability?

Scope of Research

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Inventory management is really a very broad area, but this study is limited to cotractor companies, with special reference to the Aref Contractor Company in Jeddah Saudi Arabia.
the Investigations in this project is to what extent the inventory managment have affected the profitability, efficiency e.t.c. Also, attempts are made to analyses any cost savings . Efforts are also made to relate the level of inventory to the level of production and sales. Finally, inventory costs are related to the levels of profit with the aid of basic statistical tools .

Significant of the Study
It is important to consider the social and economic commitment to the growth of the country . So that all the ways that will improve the company’s growth ,it must be exploited, so the researcher’s hope is that this study isuseful for owner of Aref Contractor Company and others.
This research project would help the management of Aref Contractor Company, to identify the most influentia risk of inventory management and production. Furthermore, the study will also help the management of the company, to guide against losses .

Report Organization

In th

Combining the two components, we get total inventory cost for the period:

The balanced scorecard has been used to evaluate the quality of inventory management performance measure and its improvement. In any case, the balance scorecard complements financial measures of past performance with measures of drivers of future performance. The objectives and measures for organizational inventory management performance come from four perspectives; financial, client, internal process and learning and development (BPP, 2008). Consequently, Aref Contractor Company Balance scorecard in relation to transport management has been molded to upgrade its transport and requirements owing to the fact that it has multi-discipline functionalities in its operations. The performance management of Aref Contractor Company has been improved and progressed to foster smooth running of the institution over Jeddah ,Saudi Arabia by guaranteeing that clients are treated well (Sutherland, David and Alistair, 2002).

RESEARCH METHODOLOGY

Introduction
It would have been best to conduct this research in all the manufacturing companies and contractors companies in Saudi Arabia in arrange to seek after excellence and at the same time achieve the most excellent possible result. However, such a huge amount of companies will pose a few issues. As a result of the attendant monetary, time and other limitations, the research has limited this investigation to only one contractor company in Saudi Arabia: Aref Contractor Company.

3.1 Method for Information collection and analysis
The information used for this investigation were collected from primary and secondary sources of information.

3.1.1 PRIMARY SOURCES

The information were collected from the works accountant, production manager, marketing manager, sale official and other people from the chosen company. It was facilitated through questions, perception and oral interview. These instruments and other means of information collection were found convenient for this study because they helped to induce the view of the literate members of the company . Secondly, in a investigate work of this nature, where information collected will be totally analyzed, the researcher considered it very shrewd to use more of questions in order to avoid gathering of information that will have very small or no pertinence to the subject matter beneath study. Also, considering the kind of respondent being tended to, it was found most attractive because it does not require expound reply. Most of the questions are basic “yes” or “no” type. However others are such that require the respondent to rate a statement into choices; such as “strongly agreed”, “undecided”, “disagree” etc. The survey, generally utilizes a printed format that efficiently indicates all the questions as well as the arrangement to which they are to be presented. All these steps were made for easier investigation of information and result.

3.1.2 SECONDARY SOURCES

The result of existing literatures on stock management helped in~measurablyi n directing the researcher during the study. Other secondary sources of information include:

1.Newspapers
2.Magazines and Periodicals
3.Reference books and Dictionaries
4.Course reading materials
5.Secondary information also exists within the company
6.Examination of the company’s yearly reports and journals.

3.2 Pilot survey
A pilot overview was carried out to eliminate all ambiguous questions from the study instrument used. The pilot study was similarly carried out since the level of understanding contrasts among the respondents. The sample for this pre-testing was drawn from the company reviewed. The pilot study empowered the researcher to test the respondents’ attitudes to the questions and terms used.

3.3 Sample techniques

For easier collection of information, only Aref Contractor Company was used as a case study, since all others might not be covered as a result of time and financial constraints. The observations and results got from the company were used to generalize and predict what is obtainable in all other contractor companies, particularly within the areas of their stock management.

PROCEDURE AND TECHNIQUES FOR DATA ANALYSIS:

Majority of the questions within the survey have relevance to the speculation and investigate questions raised earlier. Information from the different questions were categorized concurring to their pertinence to the confirmation of the theory of this research project and realization of the stated goals. The information were analyzed utilizing basic statistical (eg mean, chi-square, regression and correlation co-efficient) and mathematical methods. The economic order quantity of the company was calculated after estimating a few figures, as a few of the required figures were not in existence within the company’s books.
However, from the available information, relationship between certain variables were determined and analyzed. The relationship that existed between variables have been tested within the speculation for validity and reliability. Information for writing survey were obtained from relevant books. Most quantitative information were drawn from the accounts office of the Aref Contractor Company.

Summary
This study sort to answer the questions what is the inventory management techniques application, how to determine the affect and challenges of inventory management techniques and how to determine the challenges of inventory management techniques in Aref Contractor Company .It was established that Aref Contractor Company has worked for more than ten years meaning they have been developing . However, the Aref Contractor Company should embrace inventory management techniques so that they can gain more profits and they extend all across of Saudi Arabia

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