Assessment of Effects of Inventory Control Management on the Performance of A Business Firm (A Case Study of Orange Kenya)

TABlE OF CONTENT

Page

Declaration ................................................................................................................................................. i

Approval ................................................................................................................................. ii

Dedication ................................................................................................................................................... iii

Acknowledgement ..................................................................................................................................... iv

Table of content .................................................................................................................................... iv-ix

Abstract ....................................................................................................................................................... x

CHAPTER ONE: INTRODUCTION TO THE STUDY

1.0 INTRODUCTION .................................................................................................................. 1

1.1 Background of the Study .......................................................................................................... 1-5

1.1.1 Profile of Orange Kenya Limited ............................................................................................. 5

1.2 Statement of the problem .......................................................................................................... 6

1.3 Objectives of Studies .................................................................................................................. 6

1.3.1 General Objectives ................................................................................................................. 6

1.3.2 Specific Objectives ................................................................................................................. 6

1.4 Research Questions ................................................................................................................... 7

1.5 Significance of the Study ........................................................................................................... 7

1.6 Limitations of the Study ........................................................................................................... 7

1.6.1 Confidentially ......................................................................................................................... 7

1.6.2 Lack of Co-operation .............................................................................................................. 7

1.7.Scope of the Study .................................................................................................................... 7

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1.8 Conceptual Framework ............................................................................................................. 8

1.8.11nformation communication Technology ............................................................................... 8

1.8.2 Material Handling ................................................................................................................... 8

1.8.3 Personnel Competency .......................................................................................................... 8

1.8.4 Training ................................................................................................................................... 9

CHAPTER TWO: LITERATURE REVIEW.

2.11ntroduction ............................................................................................................................. 10

2.2 Review of the Past Studies ....................................................................................................... 11

2.2.11nformation Communication Technology .......................................................................... 11-16

2.2.2 Material Handling .............................................................................................................. 17-19

2.2.3 Personnel Competency ...................................................................................................... 19-20

2.2.4 Training .............................................................................................................................. 20-22

2.3 Critical Review ......................................................................................................................... 22

2.4 Summary ............................................................................................................................... 22-23

CHAPTER THREE: RESEARCH DESIGN AND METHODOLOGY

3.11ntroduction ............................................................................................................................. 24

3.2 Research Design ....................................................................................................................... 24

3.3 Target Population .................................................................................................................... 24

3.4 Sample Design ......................................................................................................................... 2 ~

3.5 Data Collection Methods ......................................................................................................... 25

3.5.1 Validity and Reliability Data Collection lnstruments ............................................................. 25

3.6 Data analysis ........................................................................................................................... 25

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CHAPTER FOUR: DATA ANALYSIS, PRESENTATION AND INTERPRETATION

4.11ntroduction ............................................................................................................................. 26

4.2 Quantitative Analysis ............................................................................................................... 26

4.2.1 Response Rate .................................................................................................................. 26-27

4.2.2 Gender. ............................................................................................................................ 27-28

4.2.3 Marital Status .................................................................................................................. 28-29

4.2.4 Highest Level of Education .............................................................................................. 29-30

4.2.5 Age Analysis ..................................................................................................................... 30-31

4.2.6 Effect of ICT in the performance of a Business firm ............................................................ 31

4.2.7 Information Communication Technology Rating ............................................................. 32-33

4.2.8 Effect of Material Handlin& in the performance of a Business ........................................ 33-34

4.2.9 Material Handling Rating ................................................................................................. 34-35

4.2.10 Effect of Personnel Competency in the performance of abusiness ............................... 35-36

4.2.11 Personnel Competency Rating ....................................................................................... 36-37

4.2.12 Effect of Training in the performance of a Business ..................................................... .37-38

4.2.13 Training Rating ............................................................................................................... 38-39

4.3 Qualitative Analysis ................................................................................................................. 39

4.3.11nformation Communication Technology ............................................................................. 39

4.3.2 Material Handling ................................................................................................................ .40

4.3.3 Personnel Competency ....................................................................................................... .40

4.3.4 Training ................................................................................................................................ .40

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'~HAPTER FIVE: SUMMARY OF FINDING CONCLUSION AND RECOMMENDATION

5.11ntroduction ............................................................................................................................. .41

5.2.11nformation Communication Technology ............................................................................ .41

5.2.2 Material Handling ................................................................................................................ .41

5.2.3 Personnel Competency ....................................................................................................... .41

5.2.4 Training ................................................................................................................................ .41

5.3 Answers to the Research Questions ....................................................................................... .42

5.3.1 To what extend does ICTaffect business performance? ..................................................... .42

5.3.2 How does material handling affect business performance? ............................................... .42

5.3.3 How does personel competency affect business performance? ......................................... .42

5.4 Conclusion .............................................................................................................................. .42

5.5 Recommendation ................................................................................................................... .43

5.5.1 Information Communication Technology ............................................................................. 43

5.5. 2 Mate ria I Handling ............................................................................................................... .43

5.5.3 Personnel Competency ....................................................................................................... .43

5.5.4 Training ................................................................................................................................ .43

5.5 Areas for Further Research ............................................................................................................. 44

APPENDIX A: References ........................................................................................................... 45

APPENDIX B: Research Instruments ........................................................................................... .45

1: Questionnaires .................................................................................................... .45-48

APPENDIX C: Work Plan ............................................................................................................... .49

APPENDIX D: Budget ...................................................................................................................... 5

ABSTRACT

The study was carried out at Orange Kenya Nairobi region as a case study in an attempt to assess the effects of inventory control management in the performance of a business firm. In this study inventory control management is the measure of business firm efforts to improve its perfomance. The objective of the study was to investigate the relationship inventory control rr,anagement and the performance of a business firm. To examine advantages of adopting good inventory control management, to establish challenges faced when implementing these policies towards positive or negative performance of a business firm and finally to propose possible ways to overcome the challenges faced in implementing inventory control management in the

performance of a business firm. The study adopted both qualitative and quantitative approach in capturing the correct perception and news of the respond"!nts for the success of the study. The researcher also used questionnaires and interview as survey research technique in gathering data relevant to the study. This design based on a descriptive and explanatory research design with the aim of identifying the inventory control management employed, establishing the positive or negative performance of a business firm levels and the relationships between inventory control management and the performance of a business firm. Results of the study indicated that inventory control management levels are still low in Orange K2nya in comparison to other companies in the same line. The results from the study have clearly indicated that provision of information communication technology,effective material handling, personnel competency, and training of employees would go along way in enhancing effective businesss performance. The recommendations of the study are that the existing inventory control management are to be revised to increase the performance of a business firm and in this study Orange Kenya.

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