Inventory Management And Performance Of Organisations: A Case Study Of Mukw Ano Group Of Companies, Kamp Ala

ABSTRACT The research was set to examine the effect of inventory management on the performance of organizations with special attention to Mukwano group of companies, it was guided by three objectives .which included establishing strategies that purchasing entities can adopt in managing inventory the challenges encountered in inventory management in Mukwano group of companies and explore the effects of inventory in performance of organisations. The study adopted an analytical research design through the use of both qualitative and quantitative research approaches. The study involved 60 respondents who were contacted using the questionnaire. Data collection was done and presentation put in tables and graphs analysis was done based on the presentation. The study findings were that strategies for improving inventory management were training of stores staffs on handling inventory which had an agreement of 81. 7%, the challenges faced in the management of inventory were found to be numerous with poor demanding forecasting taking a lead with an agreement of 78.3%. It was finally established that inventory management has an effect on performance of Mukwano group 1;Vith efficiency and effectiveness in production taking a lead with 83.3% of the agreement according to respondents. The observation creates a situation of need not only for Mukwano group of companies but other organisations if performance is to be adequately realised in organisation. The status quo requires the adoption of the recommendations such as forecast of market for its products so that it stocks enough inventories to avoid under stocks and reduce on damaged inventory. Fixing the stock levels that is maximum, minimum and reorder levels for all items in stock in order to avoid inadequate stocks or stock outs suffered by the company, minimizing on its inventory expenses by using skilled labour, identifying the order quantity that minimizes total cost of stock holding, stock ordering and purchase costs in order to maximize profits.