DETERMINANTS_OF_EFFECTIVE_INVENTORY_MANAGEMENT_AT_KENOL.pdf

DETERMINANTS_OF_EFFECTIVE_INVENTORY_MANAGEMENT_AT_KENOL.pdf...

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European Journal of Business Management Vol.1, Issue 11, 2014 ISSN 2307-6305 | P a g e 1 DETERMINANTS OF EFFECTIVE INVENTORY MANAGEMENT AT KENOL KOBIL LIMITED Elema Boru Godana Jomo Kenyatta University of Agriculture and Technology KENYA Dr. Karanja Ngugi Kenyatta University Department of Accounting and Finance KENYA CITATION: Godana, B. E. & Ngugi, K. (2014). Determinants of Effective Inventory Management At Kenol Kobil Limited . European Journal of Business Management, 1 (11), 341- 361. ABSTRACT Inventory management is concerned with ensuring that all activities involved in storekeeping and stock control are carried out efficiently and economically by those employed in the store. There has been a question for management about the efficiency of inventory management procedures in place resulting from inconsistencies of inventory levels leading to various weakness like losses that come as a result of over, under-stocking, expiry inventory, failure to meet targets and low morale of the company members. As a result the c ompany‟s stores are over crowded making the work of a store-keeper difficult, late issue of materials to the department and these in turn result into poor inventory service delivery. Kenyan oil marketer Kenol Kobil posted an 8.96 billion shilling ($105.66 million) pretax loss in 2012 from a 4.93 billion shilling profit in 2011(RoK, 2013). The Energy Regulatory Commission statistics indicate that crisis related to inventory management hinders effective management of stores at Kenol Kobil limited. The study was guided by four objectives (information technology, distribution channels, Staff Competency and material handling equipments. The study was a descriptive research design. The target population was procurement managers, stores managers and other stores personnel in the Kenol Kobil. Questionnaires were the main data collection instruments. The study employed both quantitative and qualitative analysis techniques. Data was presented using tables, pie charts and bar graphs. Inferential statistics includes correlation and regression analysis. The study found out that information technology Reduces lead times on effective inventory management; that
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European Journal of Business Management Vol.1, Issue 11, 2014 ISSN 2307-6305 | P a g e 2 information technology has no effect on Increased lead times in effective inventory management; that no change on lead times brought by information technology. The study also found that Most employees have basic Staff competency (competencies) on inventory management at kenol kobil. Keywords: Determinants of Effective Inventory Management At Kenol Kobil Limited. Introduction According to Kotler (2000), inventory management refers to all the activities involved in developing and managing the inventory levels of raw materials, semi-finished materials (work- in-progress) and finished good so that adequate supplies are available and the costs of over or under stocks are low. Inventories are essential for keeping the production wheels moving, keep the market going and the distribution system intact. They serve as lubrication and spring for the
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