THE INVENTORY MANAGEMENT AND ORGANIZATIONAL PERFORMANCE: A CASE STUDY OF MUKWANO GROUP OF COMPANIES.

TABLE OF CONTENTS

DECLARATION

APPROVAL

DEDICATION

ACKNOWLEDGEMENT iv

TABLE OF CONTENTS v

LIST OF TABLES viii

LIST OF FIGURES ix

ABBREVIATIONS x

ABSTRACT xi

CHAPTER ONE 1

1.0 Introduction 1

1.1 Background of the Study 1

1.1.1 Inventory Management 2

1.2 Background of Mukwano group of companies 3

1.3 Statement of the Problem 4

1.4 The Purpose of the study 4

1.5 Objectives of the study 4

1.6 Research Questions 4

1.7 The scope of the study 5

1.7.1 Subject scope 5

1.7.2 Geographical scope 5

1.7.3 Time scope 5

1.8 Significance of the Study 5

CHAPTER TWO: LITERATURE REVIEW 6

2.0 Introduction 6

2.1 Theoretical Review 6

2.1.1 Strategic Choice Theory 6

2.1.2 Transaction Cost Analysis 6

2.1.3 Theory of Economic Order Quantity (Wilson’s EOQ Model) 7

2.2 Inventory Management 8

2.2.1 Economic Order Quantity (EOQ) Model 8

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2.2.2 Just in time (J.I.T) Model .9

2.2.3 ABC Analysis 10

A B C CATEGORIES 10

2.2.4 Vendor Managed Inventory (VMI) 11

2.2.5 Material requirement planning (MRP 1) 11

2,2.6 Bar-coding 12

2.2.7 Enterprise Resource Planning (ERP) 13

2.2.8 Simulation 13

2.2.9 Radio Frequency Identification system (RFIS) 14

2.2.10 E-Procurement 15

2.2.11 Perpetual Inventory System 15

2.2.12FIFO 16

2.2.13 Periodic Review or Stock-taking 16

2.3 Relationship between Inventory Management and organizational Performance 16

2,4 Challenges of Implementing Inventory Management 18

2.5 Conceptual Framework 19

CHAPTER THREE: RESEARCH METHODOLOGY 20

3.0 Introduction 20

3.1 Research design 20

3.2 Study population 20

3.3 Sample size 20

3.4 Sampling methods procedure 21

3.SDatasource 21

3.5.1 Primary data 21

3.5.2 Secondary Data 21

3.6 Research instrument 21

3.7 Data processing and analysis 21

3.8 Data analysis 22

3.9 limitations and delimitations 22

CHAPTER FOUR: DATA PRESENTATION, ANALYSIS AND INTERPRETATION

OF FINDINGS 23

4.0 Introduction 23

4.1 General personal information 23

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4.1.1 Gender of the respondents .23

4.1.2 Age of the respondents 24

4.1.3 Level of education 25

4.1.4 Duration in the organization 25

4.2 Relationship between inventory management and organizational performance 27

4.3 Methods of inventory management Used In organizations 30

4.4 Challenges Faced by organizations in Managing inventory 32

CHAPTER FIVE: SUMMARY, RECOMMENDATIONS, CONCLUSION AND

AREAS FOR FURTHER RESEARCH 34

5.0 Introduction 34

5.1 Summary of the major findings 34

5.1.1 The relationship between inventory management and organizational performance 34

5.1.2 The inventory management methods used in MGCs 35

5.1.3 The Challenges faced by MGCs in Managing inventory 36

5.2 Conclusions 37

5.3 Recommendations 37

5.4 Areas for further Research 38

REFERENCES 39

APPENDICES 41

APPENDIX I: QUESTIONNAIRE 41

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