Inventory Control and Customer Satisfaction Case Study: Monitor Publication Limited

TABLE OF CONTENTS

DECLARA TJON ·················v··············································-~·-·························································· i

APPROVAL ..................................................................................................................................... ii

DEDJCA TION ................................................................................................................................. iii

ACKNOWLEDGEMENT ............................................................................................................... iv

TABLE OF CONTENTS .................................................................................................................. v

LIST OF TABLES .......................................................................................................................... x

LIST OF ABBREVIATIONS .......................................................................................................... xi

ABSTRACT .................................................................................................................................. xii

CHAPTER ONE ............................................................................................................................... I

INTRODUCTION ............................................................................................................................ I

1.0 Introduction ................................................................................................................................. I

l.I Background of the study ............................................................................................................ I

1.2 Statement of the problem ............................................................................................................ 2

I .3 Purpose of the study .................................................................................................................... 3

I .4 Objectives of the study ................................................................................................................ 3

I.5 Research question ...................................................................................................................... 3

I .6 Scope of the study ....................................................................................................................... 3

1.6.I Geographical scope .................................................................................................................. 3

1.6.2 Subject scope ........................................................................................................................... 4

.6.3 Time scope ............................................................................................................................... 4

.7 Significance of the study ............................................................................................................. 4

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CHAPTER TWO .............................................................................................................................. 5

LITERATURE REVIE~ .............................................. , ...............................................•.................. 5

2.0 Introduction ................................................................................................................................. 5

2.1 Inventory control ......................................................................................................................... 5

2.1.1 Types of inventory ................................................................................................................... 6

2.1.2 Inventory costs ......................................................................................................................... 8

2.1.3 The need for holding inventories ............................................................................................. 8

2.1.4 The need for inventory control ................................................................................................ 9

2.1.5 Inventory Control Strategies .................................................................................................. I 0

2.2 Conceptual flame work ............................................................................................................. 14

2.2.1 Determinants of level of customer satisfaction ...................................................................... l6

2.2.2 Customer care and customer handling ................................................................................... 16

2.2.3 Product of service quality ...................................................................................................... 17

2.2.4 Behaviour of internal customers ............................................................................................ !8

2.2.5 Customer needs and expectation ............................................................................................ 18

2.2.6 How to measure customer satisfaction .................................................................................. 19

2.3 Relationship between inventory control and customer satisfaction .......................................... 19

2.3. I Inventory quantities ............................................................................................................... 21

2.3.2 Timing of inventory purchase and releases ........................................................................... 22

2.4 Conclusion ................................................................................................................................ 22

CHAPTER THREE ........................................................................................................................ 23

lliSEARCH METHODOLOG¥ .................................................................................................... 23

\.0 Introduction ............................................................................................................................... 23

:.1 Research Design ........................................................................................................................ 23

VI

3.2 Area of the study ....................................................................................................................... 23

I . )' 3.3 Study popu at IOn .................................................. , ............................................... , .................... -~

3.3.1 Sampling technique ................................................................................................................ 24

3.3.2 Sampling design ................................................................... ." ................................................. 24

3.3.4 Sampling procedures .............................................................................................................. 24

3.4 Sources of data .......................................................................................................................... 24

3.4.1 Primary sources ...................................................................................................................... 24

3.4.2 Secondary sources .................................................................................................................. 24

3.5 Data collection instruments ....................................................................................................... 25

3.5.1 Questionnaires ........................................................................................................................ 25

3.5.2 Interview guide ...................................................................................................................... 25

3.5.3 Observation ............................................................................................................................ 25

3.5.4 Literature survey .................................................................................................................... 26

3.5.5 Validity and Reliability of the tools ....................................................................................... 26

3.6 Data Quality Control ................................................................................................................. 26

3.7 Study variables .......................................................................................................................... 26

3.8 Data Analysis and presentation ................................................................................................. 26

3.9 Procedures of the study ............................................................................................................. 27

3.10 Limitation of the study and their likely solutions ................................................................... 2 7

CHAPTER FOUR ........................................................................................................................... 28

PRESENTATION, ANALYSIS AND INTERPRETATION OF FINDINGS ............................... 28

!.0 Introduction ............................................................................................................................... 28

k 1.0 Demographic characteristics of the respondents .................................................................... 28

.1.1 Gender composition of the respondents ................................................................................. 28

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4.1.2 Period spent working with Monitor Publication Ltd ............................................................. 28

4.1.3 Education level of the respondents ................. , ............................................... , ...................... 29

4.1.4 Age group of respondents ...................................................................................................... 30

4.1.5. Marital status of the respondents .......................................................................................... 30

4.2.0 Findings on inventory control. ............................................................................................... 31

4.2.1 Inventory control techniques are well understood by the majority employees in the

organization ..................................................................................................................................... 31

4.2.2 Inventory control is conducted annually in the organization ................................................. 32

4.:2.3 The organization puts greater emphasis on monitoring optimal stock levels and keeping

inventory records ............................................................................................................................ 32

4.2.4 Raw materials and finished goods occupy the highest levels ofactivity, .............................. 33

4.2.5 There are other items maintained by the organization apart from raw materials and finished

goods. 34

4.2.6; All inventories are inspected by the organization ................................................................. 34

4.2.7 Economic order quantity is the major inventory control technique most preferred by the

Oi'ganization ..................................................................................................................................... 35

4.2.8 There are other inventory control techniques apart tram economic order quantity .............. 35

4.3.0 Findings on customer satisfaction .......................................................................................... 36

4.3.1 Daily monitor is the major product offered to the customers by the organization ................ 36

4.3.2 Monitor Publication Ltd provides quality products to its customers ..................................... 37

0.3Individual clients are the mi(jor customers of the products offered by the organization.

'indings on whether individual clients are the major customers of the products were considered

tiid can be evidenced below ........................................................................................................... 37

.3.4 Distribution channels of Monitor Publication Ltd are convenient and attractive to

ustomers ........................................................................................................................................ 38

3.5 There is a high level of products sales in the organization .................................................... 39

4 Relationship between inventory control and customers satisfaction ........................................ 40

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CHAPTER FIVE ............................................................................................................................ 4 I

SUMMARY, CONCLUSION AND RECOMME!'IDATIONS ........................... 4 ......................... 41

5.0 Introduction ............................................................................................................................... 41

5.1.0 Summary of the findings ........................................................................................................ 41

5.1.1 Findings on Inventory control ................................................................................................ 41

5.1.2. Findings on customer satisfaction ......................................................................................... 41

5.1.3 Findings on the relationship Inventory control and customer satisfaction ........................... .41

5.2.0. Conclusion ............................................................................................................................ 42

5.2.1. Conclusion on inventory contro/ ........................................................................................... 42

5.2.2 Conclusion on customer's satisfaction ...... ; ............................................................................ 42

5.2.3. Conclusion on relationship between Inventory control and customer satisfaction .............. .42

5.3.0. Recommendations ................................................................................................................. 42

5.3.1 Recommendation on Inventory control ................................................................................. 42

5.3.2 Recommendation on customer satisfaction ........................................................................... 42

5.3.3 Recommendation on the relationship between Inventory control and customer satisfaction 43

5.4 Areas for further research ......................................................................................................... 43

REFERENCES ............................................................................................................................... 44

APPENDIX A-QUESTIONNAIRES ............................................................................................. 46

APPENDIX B ................................................................................................................................. 51

rNTERVIEW GUIDE ..................................................................................................................... 51

APPDNDIX C ................................................................................................................................. 52

liME SCHEDULE ......................................................................................................................... 52

APPDNDIX D-BUDGET ............................................................................................................... 53

APPDNDIX E-INTRODUCTION LETTER ................................................................................. 54