ABSTRACT
This study was carried out on the factors that influence the choice of inventory control methods
in organization. The specific objectives were to determine how Organization policy, Information
Technology and employee competency influence the choice of inventory control methods. The
study was conducted at Menengai Oil Company Nakuru .The theories were used to support the
objectives of the study among them are classical organization theory and competence theory.
Survey research design was adopted for the study with a target population of 35 employees
working in procurement department whereby all were given questioners out of which 30
questionnaires were returned. Data collection was by use of open ended questions without any
limit giving the respondent greater depth of response from the respondents as compared to the
closed or structured questions as they are easy to analyze. Data was collected using
questionnaires which were analyzed quantitatively using descriptive statistics like frequency
distribution tables, figures, percentages and cumulative percentages. Validity was achieved
through test-retest method in BIDCO using 10 questionnaires. From the analysis the researcher
established since majority agreed with the variables under study they influence the choice of
inventory control method in the organization. The researcher recommended that for organization
policies to best guide the inventory control method in the organization all the stakeholders should
be involved in its formulation. Further the researcher recommended since many inventory
control methods are computerized organizations and require more funds, organizations should set
aside enough funds for information technology installation. Employees should be given tasks of
which they are best suited at. Finally further was recommended on the variables under study including time, demand and finance.
TABLE OF CONTENTS
DECLARATION ............................................................................................................................ ii
ACKNOWLEDGEMENT ............................................................................................................. iii
DEDICATION ............................................................................................................................... iv
ABSTRACT .................................................................................................................................... v
LIST OF TABLES ....................................................................................................................... viii
LIST OF FIGURES ....................................................................................................................... ix
LIST OF ABBREVIATIONS ......................................................................................................... x
CHAPTER ONE ............................................................................................................................. 1
INTRODUCTION .......................................................................................................................... 1
1.1 Background to the study. .......................................................................................................... 1
1.2 Statement of the problem ...................................................................................................... 4
1.3 Objectives of the study .......................................................................................................... 5
1.3.1General objective................................................................................................................. 5
1.3.2 Specific objectives.............................................................................................................. 5
1.4 Research questions ................................................................................................................ 5
1.5 Significance of the study ....................................................................................................... 6
1.6 Scope of the study ................................................................................................................. 6
CHAPTER TWO ............................................................................................................................ 8
LITERATURE REVIEW ............................................................................................................... 8
2.1Introduction ............................................................................................................................ 8
2.2 Theoretical review/Conceptual framework ........................................................................... 8
2.2.1 Classical Organization Theory ........................................................................................... 8
2.2.2 Competence theory ............................................................................................................. 9
2.3 Critiques of the literature..................................................................................................... 15
2.4 Research summary .............................................................................................................. 16
2.5 Research Gap....................................................................................................................... 17
CHAPTER THREE ...................................................................................................................... 18
RESEARCH METHODOLOGY.................................................................................................. 18
3.0Introduction .......................................................................................................................... 18
3.1 Research Design .................................................................................................................. 18
vii
3.2 Target population ................................................................................................................ 19
3.3 Sampling technique ............................................................................................................. 19
3.4 Data collection instruments ................................................................................................. 19
3.5 Data collection procedure.................................................................................................... 20
3.6 Validity and Reliability of the Instrument .......................................................................... 20
CHAPTER FOUR ......................................................................................................................... 22
DATA ANALSYIS, PRESENTATION AND INTERPRETATION .......................................... 22
4.1 Introduction ......................................................................................................................... 22
4.2 Response Rate ..................................................................................................................... 22
4.3 Demographic Characteristics of the Respondents ............................................................... 23
4.3.1 Position held in the company ........................................................................................... 23
4.4 Whether organization policy influence the choice of inventory control methods .............. 25
4.5 Whether Information Technology influence the choice of inventory control method in the
organization ............................................................................................................................... 27
4.6 Whether employee competency influence the choice of inventory control methods ......... 28
CHAPTER FIVE .......................................................................................................................... 30
SUMMARY, CONCLUSION AND RECOMMENDATIONS ................................................... 30
5.1 Introduction ......................................................................................................................... 30
5.2 Summary of the Major Findings ......................................................................................... 30
5.3 Conclusion ........................................................................................................................... 31
5.4 Recommendations ............................................................................................................... 32
REFERENCES ............................................................................................................................. 34
APPENDICES .............................................................................................................................. 37
APPENDIX 1: LETTER TO RESPONDENTS ........................................................................... 37
APPENDIX 2: RESEARCH QUESTIONNAIRE........................................................................ 38
APPENDIX 3: BUDGET ............................................................................................................. 42
APPENDIX 4:WORKPLAN ……………………………………………………………............43
at. Finally further was recommended on the variables under study
including time, demand and finance.
