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International Journal of Economics, Commerce and Management United Kingdom Vol. IV, Issue 4, April 2016 Licensed under Creative Common Page 1019 ISSN 2348 0386 FACTORS AFFECTING THE EFFICIENCY OF INVENTORY MANAGEMENT IN ORGANIZATIONS IN KENYA A CASE OF FIRMS IN KISII TOWN Lenah Mong’ina Ondari Student MSc, Procurement & Logistics, Jomo Kenyatta University of Agriculture and Technology, Kenya [email protected] Willy Muturi Jomo Kenyatta University of Agriculture and Technology, Kenya Abstract Inventory constitutes the most significant part of current assets in many manufacturing companies. Firms in Kisii town neither keep excess inventories to avoid an unnecessary tying down of funds as well as loss in fund due to pilferage, spoilage and obsolescence nor maintain too low inventories so as to meet users demand as at when needed. This study sought to examine the factors affecting the efficiency of inventory management in organizations in Kenya. The population for this study constituted 112 employees who work at with four firms in Kisii Town. Stratified random sampling was used to select a sample size of 56 respondents. Primary data was collected using a self-administered questionnaire and was analyzed by descriptive statistics. The study established that bureaucratic procurement procedures had a positive impact on the efficiency of inventory management among firms in Kisii town. The study revealed that documentation is crucial in ensuring efficient inventory management, stock records provide the management with the information which is used to ensure accountability through stocktaking and stock audit exercise. Also, funding positively affects efficiency of inventory management among firms in Kisii town to a great extent. The study therefore recommended that there is need for firms in Kisii town to enhance their bureaucratic procurement procedures through elimination of overlapping or conflicting jobs or duties and behaviour of the system is predicable. Keywords: Bureaucratic Procurement Procedures, Documentation, Stores Record, Funding, inventory management
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