Effect of Inventory Management Practices On the Operational Performance of Manufacturing Firms a Case Study of Mukwano Group of Companies

TABLE OF CONTENT

DECLARATION

APPROVAL ii

DEDICATION iii

ACKNOWLEDGEMENTS iv

TABLE OF CONTENT v

LIST OF TABLES AND FIGURES ix

CHAPTER ONE 1

INTRODUCTION 1

1.0 Introduction 1

1. lBackground 1

1.2 Statement of the problem 5

1.3 General objective 5

1.4 Specific objectives of the study 5

1.5 Research questions 6

1.6 Scope of the study 6

1.6.1 Geographical scope 6

1.6.2 Sampling Scope 6

1.6.3 Time Scope 6

1.7 Justification of the study 7

1.8 Conceptual Frame Work 8

V

CHAPTER TWO.9

LITERATURE REVIEW 9

2.0 Introduction 9

2.1 Theoretical Review 10

2.2.1 Strategic Choice Theory 10

2.2.2 Transaction Cost Analysis theory 11

2.2.3 Theory of Economic Order Quantity (Wilson’s EOQ Model) 12

2.3 Inventory Management Practices 12

2.3.1 Economic Order Quantity (EOQ) Model 13

2.3.2 Just in time (J.I.T) Model 14

2.3.3 ABC Analysis 14

2.3.4 Vendor Managed Inventory (VMI) 15

2.3.5 Bar-coding 15

2.3.6 Simulation 16

2.4 Challenges encountered in the use of Inventory Management practices 16

2.4 Relationship of the Inventory Management Practice and Operational Performance 18

CHAPTER THREE 24

RESEARCH METHODOLOGY 24

3.0 Introduction 24

3.1 Research Design 24

3.2 Study Population 24

3.3 Sample Procedure and Size 24

3.4 Data Sources and Collection methods 25

vi

3.4.1 Sources of Data Collection .25

3.4.1.2 Primary data 25

3.5 Data collection instruments 25

3.5.1 Questionnaires 26

3.6 Data Analysis 26

3.7 Data Presentation 26

3.8 Ethical consideration 27

CHAPTER FOUR 28

PRESENTATION AND DISCUSSION OF THE FINDINGS 28

4.0 Introduction 28

4.1 Background Information 28

4.1.1 Response Rate 28

4.1.3 Sex of the Respondent 30

4.1.4 Educational level of the respondents 31

4.2 Inventory management practices employed by organizations 31

4.2.1 Inventory Management Techniques 31

4.2.2 Problems encountered in the use of inventory Management techniques 32

4.3 The Summary of Findings on How Inventory Management has influenced organization

performance 35

CHAPTER FIVE 36

CONCLUSIONS, SUMMARY, RECOMMENDATIONS AND SUGGESTIONS 36

5.0 Introduction 36

VII

5.1 Summary of findings .36

5.2 Conclusion 39

5.3 Recommendations 40

5.4 Areas for further research 43

REFERENCES 44

APPENDICES

APPENDIX I : SECTION A QUESTIONAIRE

APPENDIX II: SECTION B: Establish the extent to which inventory management practices are

applied by Mukwano Group of Companies limited iii

APPENDIX III: SECTION C: Determine the challenges faced while implementing Inventory

Management Practices iii

APPENDIX IV iv

APPENDIX V iv