The factors that influence the choice of inventory control methods in organization

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.