THE EFFECTS OF INVENTORY CONTROL ON THE PERFORMANCE OF CONSTRUCTION COMPANIES IN UGANDA A CASE STUDY OF ROKO CONSTRUCTION LTD

TABLE OF CONTENTS

DECLARATION

APPROVAL ii

DEDICATION iii

ACKNOWLEDGEMENT iv

TABLE OF CONTENTS v

LIST OF TABLES viii

LIST OF FIGURES ix

LIST OF ACRONYMS/ABBREVIATIONS x

ABSTRACT xi

CHAPTER ONE 1

INTRODUCTION 1

1.0 Introduction 1

1.1 Background to the Study 1

1.2 Statement of the Problem 3

1.3 Purpose of the Study 4

1.3.1 Objectives of the Study 4

1.4 Research Questions 4

1.5 Scope of the Study 4

1.5.1 Geographical Area 4

1.5.2 Subject Matter 5

1.5.3 Period! Time scope 5

1.6 Significance of the Study 5

CHAPTER TWO .6

LITERATURE REVIEW 6

2.0 Introduction 6

2.1 Approaches to Inventory Control 6

2.2 Inventory costs incurred in procurement process 10

2.3 The relationship between approaches of inventory control and financial performance

CHAPTER THREE 16

METHODOLOGY 16

3.0 Introduction 16

3.1 Research Design 16

3.2 Survey population 16

3.3 Sampling method 16

3.4 Sampling Size 17

3.5 Data collection 17

3.5.1 Source of data 17

3.6 Data processing, analysis and presentation 18

3.7 Limitations and anticipated solution 18

CHAPTER FOUR 19

PRESENTATION ANALYSIS AND INTERPRETATION OF THE RESEARCH

FINDINGS 19

4.0 Introduction .. 19

4.1 Background information of respondents 19

4.2 Inventory Control 22

4.3 Inventory costs incurred in procurement process in Roko Construction Limited.... 26

4.4 The relationship between Approaches of Inventory Control and Financial

Performance of Roko Construction Limited 32

CHAPTER FIVE 33

SUMMARY CONCLUSION AND RECOMMENDATIONS 33

5.0 Introduction 33

5.1 Summary of the findings 33

5.1.1 Inventory Control 33

5.1.2 Inventory costs incurred in procurement process in Roko Construction Limited. 33

5.1.3 The relationship between Approaches of Inventory Control and Financial

Performance of Roko Construction Limited 34

5.2 Conclusion 34

5.3 Recommendations 34

5.4 Area for Further Research 35

REFERENCES 36

APPENDICES 38

ABSTRACT 

This study established the relationship between inventory control and its impact on the performance of construction companies in Uganda, a case study of Roko Construction Ltd. The specific Objectives were; to determine approaches to inventory control used by Roko Construction Ltd, to find out the Inventory costs incurred in procurement process in Roko Construction Ltd and to find out the relationship between approaches of inventory control and financial performance of Roko Construction Ltd. A case study design was adopted and data collected from a sample of 30 respondents picked from a population. Self-administered questionnaires, interview guide and documentary review guide were used in the study. Data was analysed using SPSS and findings were presented in a tabular format showing frequencies and percentages. The findings revealed that the From the study it was also concluded the Goods are not inspected on receipt, staff members of Roko Construction Limited do not pay maximum attention to those inventories whose value is highest, all store staffs of Roko Construction Limited are not highly skilled, it experiences under stocks situations, and gets damaged goods from its stored. The study recommended that Roko Construction Limited should forecast market for its products so that it stocks enough inventories to avoid under stocks and reduce on damaged inventory, fix 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, minimize on its inventory expenses by using skilled labour and also increase on its sales by widening on market for its products, identify the order quantity that minimizes total cost of stock holding, stock ordering and purchase costs in order to maximize profits, put into consideration inventory management when planning for better profits in the coming years and should also minimize the cost of production as lowest as possible.