Disposal Procedures and Levels of Unwanted Stocks in Public Institutions (A Case Study of the Ministry of Planning and National Development, Nairobi Kenya).

TABLE OF CONTENTS

DECLARATION ............................................................................................................................. i

APPROVAL ................................................................................................................................... ii

DEDICATION ............................................................................................................................... iii

ACKNOWLEDGEMENT ............................................................................................................. iv

TABLE OF CONTENTS ................................................................................................................ v

LIST OF ABBREVIATIONS AND ACRONYMS ...................................................................... ix

CHAPTER ONE .............................................................................................................................. !

1.0 Introduction ................................................................................................................................ I

1.1 Background of the Study ........................................................................................................... 1

1.2 Statement of the Problem .......................................................................................................... .3

1.3 Purpose of the Study ............................................................................................................... .4

1.4 Objectives of the Study .............................................................................................................. 5

1.5 Scope of the Study ..................................................................................................................... 5

1.6 Significance of the Study ........................................................................................................... 6

1.7 Conceptual Framework .............................................................................................................. 6

1.8 Conclusion ................................................................................................................................. 7

CHAPTER TWO ............................................................................................................................. 8

LITERATURE REVIEW ................................................................................................................ 8

2.0 Introduction ................................................................................................................................ 8

2.1 The Causes of Unwanted Stock ................................................................................................. 8

2.2 Disposal Management ............................................................................................................. 10

2.3 Methods of Disposal ................................................................................................................ 11

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2.3.1. SalebyTender ..................................................................................................................... 11

2.3 .2 Transfers to Other Institutions .............................................................................................. 12

2.3 .3 Return to Suppliers ............................................................................................................... 13

2.3.4 Sale by Public Auction ......................................................................................................... 13

2.3.5 Sale to a Scrap Stockiest or Dealer. ..................................................................................... .! 4

2.3.6 Sale to Employees ................................................................................................................. 14

2.3.7 Recycle ................................................................................................................................. 14

2.3.8 Dumping, Burning and Burying ........................................................................................... 15

2.4 Why do Organizations Hold Stocks? ....................................................................................... 15

2.5 The Problems Encountered in the Disposal Process ................................................................ 16

2.6 Reducing the Occurrence of Unwanted Materials .................................................................. .18

CHAPTER THREE ....................................................................................................................... 19

RESEARCH METHODOLOGY .................................................................................................. 19

3.0 Introduction .............................................................................................................................. 19

3. I Research Design ...................................................................................................................... 19

3 .2 Sample Size and Study Population .......................................................................................... 19

3 .3 Source of Data ......................................................................................................................... 20

3 .3 .1 Primary Data ......................................................................................................................... 20

3.3.2 Secondary Data ..................................................................................................................... 20

3.4 Data Collection ........................................................................................................................ 20

3.4.lQuestionnaires ....................................................................................................................... 21

3.4.2 Interview ............................................................................................................................... 21

3.5 Data Analysis ........................................................................................................................... 21

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3.6 Data Processing ....................................................................................................................... 21

3. 7 Data Presentation ..................................................................................................................... 21

3.8 Shortcomings of the Study ....................................................................................................... 22

3 .9 Conclusion .............................................................................................................................. .22

CHAPTER FOUR ......................................................................................................................... 23

DATA ANALYSIS, PRESENTATION AND FINDINGS .......................................................... 23

4.0 Introduction ............................................................................................................................. .23

4.1 Research Findings ................................................................................................................... .23

4.1.1 Items commonly disposed of ................................................................................................ 23

4.1.2 Who does the organization think is responsible for the occurrence of unwanted stocks? ... 24

4.1.4 The Methods Used for the Disposal of Items ....................................................................... 28

The results are summarized in the table 4.1.4 and figure 4.1.4 respectively ................................. 28

4.1.5 The problems encountered during the Disposal Procedures ................................................ .30

4.1.6 The challenge of maintaining unwanted stocks within the organization ........................ 31

4.1.8 The Effectiveness of the Public Procurement and Disposal Act (2005) .............................. .33

4.2 Analysis ................................................................................................................................... 34

CHAPTER FIVE ........................................................................................................................... 36

CONCLUSION AND RECOMMENDATIONS ......................................................................... .36

5.0 Introduction ............................................................................................................................. .36

5.1: Conclusions ........................................................................................................................... .36

5.2 Recommendations ................................................................................................................... .37

5.3: Suggested Areas for Further Research .................................................................................. .39