An .Asseslvient Of The Effect Of Inventory L\1anagelvient On Profitability Of The Business (Case Study: Quality Supermarket)

ABSTRACT

 study was carried out to examme the rnventory management, assessmg the

profitability of inventory management on the profitability of quality supermarket store.

Three research questions were formulated for the study. The literature related to the study

was reviewed. This reviewed focused on the background to the potential rewards of

holding inventories and the problems associated with the inventory management. The

questionnaire, interviews and direct observation rnethods of data collection were used.

Frorn the study and analysis, it has been established that quality supermarket store in

rnanagement of her i1wentory. This is so because from the findings, it was revealed that

Quality supermarket store employees techniques such as ABC analysis V & N and

software called Navision 3.7 to monitor and control her inventory.

However, much as quality super market store has in place inventory management

techniques the profits have not been stable. The study also brings out that the challenges

Quality Supermarket stores faces are encountered by government through PPDA.

TABLE OF CONTENTS .......................................................................................... ii

DECLA.R1 TION ....................................................................................................... v

,,PPRO! 1L ............................................................................................................. vi

l)EI)ICATJON ........................................................................................................ vii

;CI

LIST OF ABBRE/J/ TIONS .................................................................................... ix

LIST OF T.IBLES ..................................................................................................... x

.~BSTRA(:T .......................... . ............................................................................... xi

A E ....................................................................................................•. 1

1.0 INTRODUCTION.......... . .

1. l BACKGROUND OF THE STUDY.

1.2 CONCEPTUAL FRAME WORK .

1.3 STATEMENT OF THE PROBLEM.

I 4 PURPOSE OF THE STUDY .....

I :'1 OBJECTIVES OF THE STUDY ..

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1.6 SCOPE OF THE STUDY ................................................................................... 5

I. 7 SIGNIFICANCE OF THE STUDY ..................................................................... 5

l .8 RESEARCH QUESTIONS .............................................................................. 6

Pl'ER TV() ..................................................................................................... 7

LlTER.ATllRE R.EVlEW ........................................................................................... 7

2.0 INTRODUCTION .......................................................................................... 7

2.1 INVENTORY MANAGEMENT ................................................................... 7

2.2 l"'Y-PES OF. fN ENl~ORY ..... . ............................................................ 7

JUSTTFTCATTON FOR HOLDING INVENTORlES ...................................... 8

2.4 PROFTTABLITY. .. . ............................................................ 9

EFFECT OF CREDIT M AGEMENT ON PROFlTAB1UTY ................. 10

11

CHr R l{El~ ............................................................................................... 13

3 O METHODOLOGY ... . ................................................... 13

3.1 INTRODUCTION ......... . . .......... ······ .. ······ ......................... 13

3.2 RESEARCH DESIGN ... . . ..................................................... 13

3.3 STUDY POPULATION ............ . .. ................................................... 13

3.4 STUDY VARIABLES .... . ····································· ................. 13

3 5 SAMPLING DESIGN AND PROCEDURES ................................................ 13

3 .6 SOURCES OF DAT A.. . .................................................. 13

3. 7 DATA COLLECTION AND INSTRUMENTS ................................................. 14

3.8 DATA PROCESSING AND EDITING .. ····································· ... ··· ........ 14

3.9 LHvHTAT10NS OF STUDY....... . .............................................................. 14

F()UR ...................................................................................................... 15

PRESENTATION AND DlSCUSSION OF FlNDlNGS .......................................... 15

4. I lNTRODUCTION.. . . ................................. 15

4.2 RESPONSE RATE OF RESPONDENTS.... . ............................................... 15

4.3 DEMOGRAPHIC PROFILE OF RESPONDENTS ............................................ 16

4.3. l SEX OF RESPONDENTS..... . .............................. 16

4.3.2 AGE OF RESPONDEN ..................... 16

4.3.3 QUALIFICATIONS OF THE RESPONDENTS .................................... 17

4.4 FINDINGS ON INVENTORY MANAGEMANT IN QUALITY SUPERMARKET

STORE .............................................................................................................. 17

4.4. l THE FINDINGS ON ABC ANALYSIS OF QUALITY SUPERMARKET

STORE ............................................................................................ 17

4.4.2 THE VIEW ANALYSIS ................................................................ 18

4.4.3 DEDUCING RE-ORDFR QUANTITY .............................................. 19

4.4.4 FlFO SYSTEM................. . .............................................. 20

4.4.5 SECURITY ................................................................................ 20

4.5 FINDINGS ON PROFITABILITY LEVELS OF QUALITY SUPERMARKET

4.6 FINDINGS ON THE EFFECT OF INVENTORY MANAGEMENT ON

PROFITABILITY OF QUALITY SUPERMARKET STORES .............................. 21

l ll

CIIA Fl'l~ .................................................................................................... 24

5.0 SUMARY OF MAJOR FINDINGS, CONCLUSION AND ............................... 24

RECOMMENDATIONS........................... . .................................................... 24

5.1 SUMMARY OF MAJOR FINDINGS.. . . ............................................. 24

5.2 CONCLUS1ON ........................ . . ························································24

S 3 RECOMMENDATIONS.

54 SUGGESTIONS FOR FURTHER RESEARCH

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