Factors Affecting Inventory-889.pdf - ISSN 2349-7807...

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ISSN 2349-7807 International Journal of Recent Research in Commerce Economics and Management (IJRRCEM) Vol. 4, Issue 1, pp: (19-39), Month: January - March 2017, Available at: Page | 19 Paper Publications Factors Affecting Inventory Management Efficiency in Kenya Seed Company, Kitale Branch, Kenya 1 Okwaro, Fredrick, 2 Iravo, Mike, 3 Berut, Zipporah 1 Jomo Kenyatta University of Agriculture & Technology (Msc. Procurement & Logistics) 2 Jomo Kenyatta University of Agriculture & Technology (Ph.D) 3 Jomo Kenyatta University of Agriculture & Technology (Ph.D Student) Abstract : Most of parastatal in Kenya face problems of efficiency in their inventory management systems. Despite this fact, limited scientific research has been undertaken to examine the factors that influence inventory management efficiency in Kenya Seeds Company. The main objective of the study was to assess factors affecting the effectiveness of inventory management practices in Kenya Seed Company. The study adopted a case study research design to produce detailed description in order to evaluate the phenomena. The target population was 110 management staff working at the Company’s pr ocurement departments from which a sample size of 87 respondents was drawn. Questionnaires were used to collect data and descriptive statistics data analysis method applied to analyze data using Statistical Package for Social Sciences version 20. Data analysis involved inferential statistics where regression analysis was used to establish the association between study variables at 95% confidence level, p-value ± 0.05. Staff training, level of technology, stock evaluation and procurement policies had a positive and significant association on the efficiency of inventory management at Kenya Seed Company. The results showed that most of the staff do not have necessary competency to run the procurement function, there is poor stock audit practices, outdated procurement systems and long bureaucratic procedures. The research finding is helpful to academicians, procurement officers and the Kenya seed company as a whole on the determinants of procurement performance. Keywords: Inventory management efficiency, level of technology, procurement policies, Staff training, and stock evaluation. I. INTRODUCTION Inventory management efficiency is a critical management issue for most public sectors. Logistics is all about managing inventory, whether the inventory is moving or staying, whether it is in a raw state, in manufacturing, or finished goods (Goldsby and Martichenko, 2005). Logistics and inventory management efficiency are embedded in each other and tied up closely. The “Bill of „Rights‟ that logistics profess ionals often repeat is to deliver the right product to the right place, at the right time, in the right quantity and condition, and at the right cost (Goldsby and Martichenko, 2005). Inventory management efficiency also becomes a fundamental part of supply chain management (SCM) now. A lot of research in SCM over the last two decades can be characterized as so called “multi - echelon inventory theory” (Quayle, 2013). SCM
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