INVENTORY CONTROL AND ORGANIZATIONAL PERFORMANCE A CASE STUDY OF MUKWANO GROUP OF COMPANIES, MAIN BRANCH KAMPALA UGANDA

CHAPTER ONE

1.1 Background of the study

Inventories over the past years have been difficult to control and even up to day though it's to some extent being brought down. This has always raised because they are immovable and subject to decision made many persons including vendors and customers. Joseph L. Cavinator (1984). Over the past in the whole sale or retail business or in productive facility, inventory was being recognized as boxes of parts or as racks of closes. Material becomes inventory as its purchased and delivered to the facility and placed in the store or holding area. Material represents a large part of finished products cost 55% is the average in manufacturing organization. An organization investment in inventory can become excessive unless property controlled. Mark A. Vonderembse and P. White (1998). Inventory control refers to a planned method of purchasing and storing the materials at the lowest cost without affecting the production and distribution schedule. Inventories comprise of raw materials, consumable stores, machinery and equipment, general stores, working progress and finished goods to be purchased and stored. Inventory control therefore is a scientific method of determining what when and how much to have in stock for a given period of time. N .A Saleem ( 1997). Organizational performance comprises of actual output or the results of an organization as a measure against its intended outputs (or goals and objectives). http/ /geogle.com. Inventory control can significantly boost customer service levels while operating as a cornerstone of an effective organizational performance. Inventory system offers comprehensive reporting capabilities to keep the organization on top. Inventory control status can help the organization bring out creation of new or j improved purchasing policies, pncmg methods and even enhance customer service. Therefore with the help of proper inventory, the organizational performance will always be at its peak.