The Effect Of Inventory Management Systems On Performance Of Supermarkets Casestudy: Uchumi supermarket

ABSTRACT

Many supermarkets experience over or under stocking of inventories, which increase

holding and ordering costs, wastages and accidents affect their performance. It became a

researcher concern to establish the effect of inventory management systems on

pe1formance of such Supermarket focusing Uchumi Supermarket as a case study.

The study was organized in five chapters based on research objectives and research

questions as presented in Chapter 1-5 and 1-6 respectively.

Chapter one entails the background to the study, background ofUchumi Supermarket, and

statement of the problem, pmpose, objectives, research questions, scope, significance and

definitions of key terms.

Chapter two entails detailed literature about inventory management and performance as

discusses by various researchers. Chapter three entailed research design that was used to

obtain data, sources of data, data collection techniques and problems faced while collecting

data.

Chapter four analyzed, discussed, and interpreted findings from primary and secondary

sources. While chapter five gave a summary of findings, conclusion, recommendations and

areas for further study.

Findings from both primary and secondary sources revealed that quality inventory

management systems are good contributions of Uchumi Supermarkets performance since

contribute 80% of the current assets. Therefore, maintenance of optimum inventory leads

to effective performance of the Supermarkets.

The researcher recommended that Uchumi Supermarket should use quality invento1y

management systems like Just in Time, Computerized inventory management so as to

reduce risks associated with their systems of managing inventory, recruitment of qualified

staffs to run such inventory and setting of other strategies of how to minimize inventory

related costs.