Inventory Management and Organizational Performance. A Case Study of Kane Fright Logistics, Kampala District

Overview
Cite Work

TABLE OF CONTENTS

DECLARATION ................................. :: .. , ...................................................................................... ii

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

DEDICATION ............................................................................................................................... iv

Acknowledgement ......................................................................................................................... ix

List of acronyms .............................................................................................................................. x

Abstract .......................................................................................................................................... xi

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

1.0 Introduction ............................................................................................................................ !

1.1 Background of the study ........................................................................................................ 1

1.2 Statement of the problem ....................................................................................................... 2

1.3 Purpose of the study .............................................................................................................. .3

1.4 General objectives of the study ............................................................................................. .3

1.5 Specific objectives ................................................................................................................ .3

1.6 Research questions ................................................................................................................. 3

1.7 Scope of the study .................................................................................................................. 4

1.8 Significance of the study ........................................................................................................ 4

1.9 Limitation of the study .......................................................................................................... .4

1.10 Definition of key terms ....................................................................................................... .4

1.11 Conceptual Framework ................................................................................................. , ...... 6

CHAPTER TWO .............................. : ............................................................................................ 7

LITE RA TORE REVIEW ............................................................................................................. 7

2.0 Introduction ......................................................................................................................... , .. ?

2.1 Techniques of Inventory Management .................................................................................. 7

2.2 Relationship between Inventory Management Techniques and the Performance Of

Organizations ............................................................................................................................. 12

2.3 Concept ofPerformance ......................................... : ............................................................. 16 .,

2.4 Perfonnance Indicators .......................... : ............................................................................. 17

2.5 The Challenges Faced By Company in Managing the Inventories ...................................... 19

CHAPTER THREE ..................................................................................................................... 25

3.0 REASEARCH METHODOLOGYS .................................................................................... 25

3.0 Introduction .............................................................................. : ........................................... 25

3 .1. Resriarch Design .................................................................................................................. 25

3.2 Area Qfthe study .. , .....................• , ........ , .......... , .................................................................... 25

3 .3 Study population .................................................................................................................. 25

3.4 Sample procedure ................................................................................................................. 25

3 .5 Sample size .......................................................................................................................... 26

3 .6 Sources of data ..................................................................................................................... 26

3.6.1 Primarydata ...................................................................................................................... 26

3.6.2 Secondary data .................................................................................................................. 26

3. 7 Instmments of data collection .............................................................................................. 27

3.7.1 Questionnaire .................................................................................................................... 27

3.7.2 Interview guide ................................................................................................................. 27

3.8 Data Analysis and Presentation Procedure .......................................................................... 27

3.9 Validity and Reliability ofresearch tools ............................................................................ 27

3.9.1 Validity .............................................................................................................................. 27

3.9.2 Reliability .......................................................................................................................... 27

3 .10 Research ethical considerations ......................................................................................... 28

3.11 Limitations and delimitations of the study ......................................................................... 28

CHAPTER FOUR ....................................................................................................................... 29

PRESENTATION, ANALYSIS AND INTERPRETATION OF STUDY FINDINGS ......... 29

4.0 Introduction .......................................................................................................................... 29

4.1 Background information of the respondents ........................................................................ 29

4.1.1 Gender composition of the respondents ............................................................................ 29

4.1.4 Age composition ofrespondents ....................................................................................... 30

4.2 Techniques of inventory management used at Kane freight logistic Kampala branch ....... .33

4.3 The relationship between inventory management and performance of Kane freight logistic

company Kampala branch ......................................................................................................... .36

4.4 Challenges faced by the Kane freight logistic Company Kampala branch in managing

inventories ................................................................................................................................. .39

•

CHAPTER FIVE ......................................................................................................................... 41

SUMMARY OF FINDINGS, CONCLUSIONS AND RECOMMENDATIONS .................. 41

5.0 Introduction ......................................................................................................................... .41

5.1 Summary of the study findings according to objectives ..................................................... .41

5.2 Conclusions ......................................................................................................................... .44

5.3 Recommendations ................................................................................................................ 45

5.4 Suggested areas for further researcher ···················:··············································

ABSTRACT The overall objective of the study was to find out the impact of inventory management and performance of organizations in Uganda while considering Kane freight logistic Kampala district. The study was guided by three objectives; to fmd out the techniques of inventory management used at Kane freight logistics Kampala branch, to examine the relationship between inventory management techiniques and performance of Kane freight logistics company Kampala branch and to find out the challenges faced by Kane freight logistic Company Kampala branch in managing the inventories. Data was collected using a questionnaire and interview guide, and during data collection purposive sampling method was used. Both qualitative and quantitative methodologies were used to analyze data as a sample size of 40 respondents was used. The study concluded that the common materials handling techniques used at Kane freight logistics Company Kampala branch include; integrated system (System Application and products) responsible for management information system, inventory requirement points, and over stock brands for the fast moving products, recoding, issue of inventories from the store that were previously purchased to the production department and arrangement of some company inventories according to the order of their importance. Also that, proper material handling technique plays an important function on the performance of organizations like Kane freight logistics Company Kampala branch and that the kind of relationship between inventory management techniques and performance of organizations in Uganda is positive. Lastly, that the challenges faced by Kane freight logistics Kampala branch in the process of managing inventories include; loss in inventories, predetermined products demand, opportunity costs, administration costs, theft and labour turnover, load shedding among other challenges faced by • the company. Q The study recommended management in manufacturing companies to always forward planning, centralize the purchase and store function, carry out stock taking exercise periodically, top management in most organizations to emphasis on the proper inventory management techniques and measuring of efficiency deviations to identify weaknesses -in· the process of managing inventories, managers in organizations to undertake forward production planning. Lastly, further studies are suggested on_ the following areas as: the effect of materials handling techniques on :employees efficiency in organizations and the relationship between labour turnover and employees' efficiency among organizations in Uganda.

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Inventory Management and Organizational Performance. A Case Study of Kane Fright Logistics, Kampala District

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