The Impact Of Inventory Management On The Profitability Of An Organisation: A Case Study Of Bugisu Cooperative Union Mbale - Uganda.

TABLE OF CONTENTS

DECLARATION .................................................................................................................................... ii

APPROVAL .......................................................................................................................................... iii

Dedication .............................................................................................................................................. iv

Ackno,.vledgen1ents ................................................................................................................................. v

CHAPTER ONE .................................................................................................................................... 1

INTRODUCTION .................................................................................................................................. 1

1.0 lntroduction ........................................................................................................................................ 1

I. I Back ground of the study ................................................................................................................... 1

1.2 Problem statement ............................................................................................................................. 3

1.3 Purpose of the Study .......................................................................................................................... 3

I .4 Objectives of the Study .................. ' ................................................................................................... 3

I .5 Research Questions ............................................................................................................................ 3

1.6 Scope of the Study ............................................................................................................................. 4

1.6. I Subject Scope ................................................................................................................................. 4

1.6.2 Geographical Scope ........................................................................................................................ 4

1.6.3 Time Scope .................................................................................................................................... 4

1.7 Significance of the Study ................................................................................................................... 4

CI !APTER TWO .................................................................................................................................... 6

l.ITERATURE REVIEW ........................................................................................................................ 6

2.0 Introduction ....................................................................................................................................... 6

2. I . Inventory .......................................................................................................................................... 6

2.1.1. Reasons for Keeping Inventories .................................................................................................... 6

2.1.2. Inventory Management .................................................................................................................. 7

2.1.3. Techniques of lnvent01y Management ........................................................................................... 7

2.1.4 Challenges encountered in the management ofinvcntory ............................................................... 10

2.1.5. Avoiding Excess Inventory .......................................................................................................... 12

2.2. Profitability .................................................................................................................................... 12

2.2.1. Theories About Profits ................................................................................................................. 13

2.3. Relationship Between Inventory Management and Prolitabil ity (Kothari.1996) ............................... 16

2.4. Conclusion ..................................................................................................................................... 18