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International Journal of Business and Commerce Vol. 3, No.1: Sep 2013[33-53] (ISSN: 2225-2436 ) Published by Asian Society of Business and Commerce Research 33 An Assessment of the Factors Influencing Effectiveness of Inventory Control; Ministry of State for Provincial Administration and Internal Security, Nairobi - Kenya Kariuki James Ng’ang’a Masters Student Jomo Kenyattta University of Agriculture and Technology Department of Procurement and Entrepreneurship School of Human Resource Development P.O Box 62000 00200 Nairobi, Kenya Phone +254- 729205418 Email: [email protected] Abstract The study was an assessment of the factors influencing effectiveness of inventory control; Ministry of State for Provincial Administration and Internal Security; Nairobi. The key findings from the study revealed that: delays in procurement of goods, frequent stock- outs and uncertain change of prices were some of the effects of long bureaucratic procurement procedure. According to the study inadequate and untimely dispatch of funds has an effect in inventory control. The study also revealed that unavailability of stationeries/stores records, lack of specific time or date for both posting stores records, lack of adequate qualified and well trained staff hinders effective performance. The researcher recommends that too much red tape and rigid rules and policies should be avoided; current inventory control practices and procedure need to be reviewed and redesigned. Only qualified and adequate personnel should be are involved in stock control while adequate funds should be dispatched on timely manner. Key words: Assessment, effectiveness, inventory, inventory control, bureaucracy, funding, stock records 1. Introduction This chapter contains the background of the study, statement of the problem, objective to the study, research questions, research justification, scope and definitions of terms. 1.1 Background to the Study In the past, inventory control was not seen to be necessary. In fact excess inventories were considered as indication of wealth. Management by then considered over stocking beneficial. But today firms have started to embrace effective inventory control (Susan & Michael, 2000). Managers, now more than ever before, need reliable and effective inventory control in order to reduce costs and remain competitive (Closs, 1989).According to Dobler and Burt (2006), inventory alone account for as much as 30% of the organization invested capital. It’s for this reason that the Government of Kenya through its Supplies manual (2007) have instituted procedures and techniques for the purpose of proper inventory control.
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International Journal of Business and Commerce Vol. 3, No.1: Sep 2013[33-53] (ISSN: 2225-2436 ) Published by Asian Society of Business and Commerce Research 34 Lyson (1996) posits that inventory control enhances profitability by reducing costs associated with storage and handling of materials.
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  • Fall '17
  • Dr. Nik
  • Asian Society of Business and Commerce Research, International Journal of Business and Commerce

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