TABLE OF CONTENTS
Page
DECLARATION ................................................................................................................ i
APPROVAL ....................................................................................................................... ii
DEDICATIONS ............................................................................................................... iii
ACKNOWLEDGEMENT ............................................................................................... iv
TABLE OF CONTENTS .................................................................................................. v
LIST OF TABLES ......................................................................................................... viii
LIST OF FIGURES .......................................................................................................... ix
ABSTRACT ....................................................................................................................... x
CHAPTER ONE ................................................................................................................ 1
INTRODUCTION ............................................................................................................. 1
1.0 Background to the Study ............................................................................................... 1
I.I Statement of the Problem .... : ......................................................................................... 3
1.2 Purpose of the Study ...................................................................................................... 4
1.3 Objectives of the Stucly .................................................................................................. 4
1.4 Research Questions ........................................................................................................ 4
1.5 Scope of the Study ......................................................................................................... 4
1.5.1 Geographical Area: ..................................................................................................... 4
1.5.2 Subject Matter. ............................................................................................................ 5
1.5.3 Period/ Time scope ..................................................................................................... 5
1.6 Significance of the Study ............................................................................................... 5
V
CHAPTER TWO ............................................................................................................... 6
LITERATURE REVIEW ................................................................................................. 6
2.0 Introduction ................................................................................................................... 6
2.1 Approaches to Inventory Control .................................................................................. 6
2.2 Inventory costs incurred in procurement process ........................................................ 10
2.3 The relationship between approaches of inventory control and financial performance
........................................................................................................................................... 13
CHAPTER THREE ......................................................................................................... 15
METHODOLOGY .......................................................................................................... 15
3.0 Introduction ................................................................................................................. 15
3. I Research Design .......................................................................................................... 15
3.2 Survey population ....................................................................................................... 15
3.3 Sampling method ... :···································································································· l5
3.4 Sampling Size ............. · ................................................................................................. 16
3.5 Data collection ............................................................................................................. 16
3.5.1 Source of data ........................................................................................................... 16
3.5.2 Instruments ............................................................................................................... 16
3.6 Data processing, analysis and presentation ................................................................. 16
3.7 Limitations and anticipated solution ............................................................................ 17
CHAPTER FOUR ........................................................................................................... 18
PRESENTATION AND INTERPRETATION OF THE FINDINGS ........................ 18
vi
4.0 Introduction ................................................................................................................. 18
4.1 Background infonnation ofrespondents ..................................................................... 18
4.2 Inventory Control ........................................................................................................ 21
4.3 Inventory costs incurred in procurement process in Kavuma Investments ................. 24
4.4 The relationship between Approaches of Inventory Control and Financial
Perfonnance of Kavuma Investments ................................................................................ 28
CHAPTER FIVE ............................................................................................................. 29
SUMMARY CONCLUSION AND RECOMMENDATIONS .................................... 29
5.0 Introduction ................................................................................................................. 29
5.1 Summary of the findings ............................................................................................. 29
5.1.1 Inventory Control ..................................................................................................... 29
5 .1.2 Inventory costs incurred in procurement process in Kavuma Investments .............. 29
5.1.3 The relationsbip between Approaches of Inventory Control and Financial
Performance of Kavuma Investments ................................................................................ 29
5.2 Conclusion ................................................................................................................... 30
5.3 Recommendations ....................................................................................................... 30
5 .4 Area for Further Research ........................................................................................... 31
REFERENCES .................................................................................................................. 31
APPENDIX I: QUESTIONNAIRE FOR STAFF MEMBERS ........................................ 35
ABSTRACT The purpose of the study was to establish the relationship between inventory control and its impact on the performance of construction companies in Uganda basing on the following objectives; to detennine approaches to inventory control used by Kavuma Investments, to find out the Inventory costs incurred in procurement process in Kavuma Investments, and to find out the relationship between approaches of inventory control and financial perfonnance of Kavuma Investments The descriptive aspect of the research design was nsed in establishing the company perfonnance and the analytical research design was used to establish relationship between inventory control and performance. The sample size of 30 was determined by fonnulae of Krejcie Morgan ( 1970). Data was both primary and secondary. Primary data was collected by the use of questionnaires and secondary data was got from repo11s, journals, and internet. Frequency tables, and graphs were worked out basing on the data entered into excel. In these frequency tables, and graphs analysis was done with a coJTesponding percentage. However statistical packages for social sciences (SPSS) were used to determine the relationship between the two variables. Findings revealed that Goods are not inspected on receipt, staff members of Kavuma lrivestments do not pay maximum attention to those inventories whose value is highest, all store staffs of Kavuma Investments are not highly skilled, it experiences under stocks situations, and gets damaged goods from its stored. Besides that Kavuma Investments is faced with costs of checking on orders and m maintaining records of the entire process, handling costs. Nevertheless, there is a strong positive relationship between approaches of Inventory Control and Financial Performance at Pearson correlation coefficient 1= 0.794. It was recommended that Kavurna Investments should forecast market for its products so that it stocks enough inventories to avoid under stocks and reduce on damaged inventory.
