TABLE OF CONTENTS
DECLARATION .................................................................................................................... 11
APPROVAL ............................................................................................................................ iii
DEDICATION ........................................................................................................................ iv
ACKNOWLEDGEMENT ...................................................................................................... v
LIST OF ACRONYMS .......................................................................................................... vi
TABLE OF CONTENTS ...................................................................................................... vii
ABSTRACT ........................................................................................................................... ix
CHAPTER ONE ...................................................................................................................... 1
1.0 Introduction ........................................................................................................................ 1
1.1 Background of the Study ................................................................................................... 1
1.2 Statement of the Problem .................................................................................................. 2
1.3 Purpose of the Study ......................................................................................................... 2
1.4 Objectives of the Study ..................................................................................................... 3
1.5 Research Questions ........................................................................................................... 3
1.6 Scope of the Study ............................................................................................................. 3
1.7 Significance of the Study .................................................................................................. 3
Conceptual Model .................................................................................................................... 4
CHAPTER TWO ..................................................................................................................... 6
2.0 LITERATURE REVIEW ................................................................................................. 6
2.1 Introduction ........................................................................................................................ 6
2.2 Definition of Concepts ...................................................................................................... 6
2.2.1 Inventory ......................................................................................................................... 6
2.2.2 Inventory Management .................................................................................................. 6
2.2.3 Objectives of Inventory Management ........................................................................... 6
2.2.4 Motives of Holding Inventory ....................................................................................... 7
2.3 Inventory Managements Systems ..................................................................................... 7
2.3 .1 Just in Time (JIT) Technique ......................................................................................... 8
2.3.2: Two Bin System ............................................................................................................ 8
2.3.3 ABC Analysis ................................................................................................................. 8
2.3.4 Order Cycling System .................................................................................................... 9
2.3 .5 Economic Order Quantity .............................................................................................. 9
2.3.6: Minimum-Maximum Stock Levels ......................................................................... 10
2.3.7: Stockless Purchasing .................................................................................................. 11
2.3 .8: Material Requirement Planning (MRP) ..................................................................... 11
2.3.9 Stock Control Chart ...................................................................................................... 12
2.4 Performance ..................................................................................................................... 13
2.4.1 Definition of Performance ........................................................................................... 13
2.4.2 Performance Measurement .......................................................................................... 13
2.4.3 Aims of Performance Measurements .......................................................................... 16
2.5 Relationship Between Inventory Management and Performance ofEnterprises ........ 17
2.5.1 lnventory Valuation ...................................................................................................... 17
Vll
2.5 .2 Just in Time ................................................................................................................... 17
2.5.3 Safety Stock .................................................................................................................. 18
CHAPTER THREE ............................................................................................................... 19
3 .0 RESEARCH METHODOLOGY ................................................................................... 19
3 .1 Introduction ...................................................................................................................... 19
3 .2 Research Design .............................................................................................................. 19
3 .3 Sources ofData ................................................................................................................ 19
3.3 Data Analysis ................................................................................................................... 19
3.4 Data Presentation ............................................................................................................. 19
3 .5 Measurement of Variables .............................................................................................. 20
CHAPTER FOUR ................................................................................................................. 21
4.0 DATA PRESENTATION AND ANALYSIS OFTHEFINDINGS ........................... 21
4.1 Introduction ...................................................................................................................... 21
4.2 Findings on the Inventory Management Objectives ..................................................... 21
4.3 Findings on Motives ofHolding Inventory ................................................................... 21
4 .4 Findings on Inventory Management Control Systems .................................................. 21
4.4.1 ABC Analysis ............................................................................................................... 21
4.4.2 Economic Order Quality .............................................................................................. 22
4.4.3 Just in Time ................................................................................................................... 22
4.5 Findings on Performance ................................................................................................ 22
4.6 Findings on the Relationship Between Inventory Management and Performance of
Enterprises .............................................................................................................................. 24
CHAPTER FIVE ................................................................................................................... 25
5.0 CONCLUSIONS AND RECOMMENDATIONS OF FINDINGS ............................. 25
5 .1 Introduction .................................................................................................................... 25
5 .2 Conclusions ...................................................................................................................... 25
5.3 Recommendations ........................................................................................................... 26
5.4 Area of Future Research ................................................................................................. 26
REFERENCES ...................................................................................................................... 27
QUESTIONNAIRE ............................................................................................................... 29
APPENDIX I. ......................................................................................................................... 31
APPENDIX Il ........................................................................................................................ 32
APPENDIX Ill ....................................................................................................................... 33
ABSTRACT Inventory forms a big percentage of current assets of most enterprises and therefore should be properly managed. This prompted the researcher to find out the impact of inventory management on the performance of enterprises. The objectives of the study were; to examine the different techniques of inventory management systems used by enterprises, to establish the performance measures employed by enterprises and to find out the relationship between the variables. For the researcher to achieve this, data was gathered via secondary sources mainly text books, journals, internet and already researched data, to establish the literature on the two variables. The findings were presented, analysed, interpreted and discussed. The researcher also discovered that inventory management was one of the factors affecting performance of enterprises in addition to other factors such as technology, inflation. In conclusion therefore, if an enterprise is in a position to reduce its costs associated with inventory, the performance of the enterprise will be high especially where modem techniques of inventory management like the just in time and materials requirements planning (MRP) are applied.
