Inventory Management Systems and Performance of Selected Foreign Super Markets in Kampala, Uganda

ABSTRACT

The study sought to assess the effect of inventory management systems on performance of super markets in Kampala Uganda. It was guided by three specific objectives, that included; to determine the effect of just-in-time inventory on performance of super markets in Kampala Uganda, to establish the effect of vendor managed inventory on performance of super markets in Kampala Uganda and to establish the effect of material requirements planning on performance of super markets in Kampala Uganda. This research employed cross-sectional, survey and descriptive research design to describe the variables and the questionnaire and interview guide were used as the research instruments. Descriptive statistics were used in this study included frequencies, means and regression analysis on variables. The findings revealed the following: The findings indicated that just-in-time significantly affects the performance of super markets in Kampala Uganda, this effect therefore implies that just-in-time highly contribute to the performance of super markets in Kampala Uganda, the findings revealed that there is a significant effect vendor managed inventory has on performance of super markets in Kampala Uganda , findings of this study proved a weak positive significant effect material requirements planning has on performance of super markets in Kampala Uganda. Still the conclusions were that; there is a weak positive significant effect just-in-time has on performance of super markets in Kampala Uganda (β=0.491, Sig=0.000), effective vendor managed inventory significantly improves performance of super markets in Kampala Uganda (β=0.425, Sig=0. 000), Material requirements planning highly affects the performance of super markets in Kampala Uganda (β=0.533, Sig=0. 000). The researcher recommended that the: the owners should develop a good system to monitor, record and track all the inventory so that there is effectiveness in inventory management and ensure to cover loopholes in the system to enhance performance of super markets, owners and managers of the super markets in Kampala should develop vendor managed inventory system for example alternatives ways of keeping inventory which makes vendor managed inventory easy and flexible so as to boost performance of super markets. The study contributed to knowledge by showing that one of the most prominent findings from this study is the fact that it has provided evidence to support the fact that inventory management systems can improve the state of performance of super markets in Kampala. Another important revelation that can be attributed to this study is that it is now clear that inventory management system is somehow lacking, little is done through to improve performance of super markets in Kampala Uganda. The contribution to knowledge included the following; One of the most prominent findings from this study is the fact that it has provided evidence to support the fact that inventory management systems can improve the state of performance of super markets in Kampala. The research gap has been filled by this study. The study covered both the content and geographical gap of inventory management systems and performance. Another important revelation that can be attributed to this study is that it is now clear that inventory management system is somehow lacking, little is done through to improve performance of super markets in Kampala Uganda.

TABLE OF CONTENT

DECLARATION ............................................................................................................................ ii

APPROVAL ..................................................................................................................................iii

DEDICATION............................................................................................................................... iv

ACKNOWLEDGEMENT.............................................................................................................. v

TABLE OF CONTENT................................................................................................................. vi

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

ABSTRACT................................................................................................................................... xi

CHAPTER ONE............................................................................................................................. 1

INTRODUCTION .......................................................................................................................... 1

1.1 Background to the study ........................................................................................................... 1

1.1.1 Historical perspective............................................................................................................. 1

1.1.2 Theoretical perspective .......................................................................................................... 2

1.1.3 Conceptual perspective .......................................................................................................... 3

1.1.4 Contextual perspective........................................................................................................... 3

1.2 Problem Statement.................................................................................................................... 4

1.3 Purpose of the study.................................................................................................................. 5

1.4 Objective of the study:.............................................................................................................. 5

1.5 Research Questions................................................................................................................... 6

1.6 Hypothesis: ............................................................................................................................... 6

1.7 Scope of the study..................................................................................................................... 6

1.7.1 Geographical scope................................................................................................................ 6

1.7.2 Content scope......................................................................................................................... 6

1.8 Significant of study................................................................................................................... 7

1.9 Operational Definition .............................................................................................................. 7

CHAPTER TWO ............................................................................................................................ 9

LITERATURE REVIEW ............................................................................................................... 9

2.0 Introduction............................................................................................................................... 9

2.1 Theoretical review .................................................................................................................... 9

2.2 Conceptual frame work:.......................................................................................................... 11

2.3 Inventory Management System .............................................................................................. 12

2.4 Performance ............................................................................................................................ 13

2.4.1 Effect of just-in-time on performance of super markets in Kampala .................................. 15

2.4.2 Effect of Vendor Managed Inventory on performance of super markets............................ 18

2.4.3 Effect of Material Requirements Planning (MRP) on performance of super markets ........ 19

2.5 Effect 0f Inventory Management Systems On Performance .................................................. 24

2.6 Research Gaps......................................................................................................................... 25

CHAPTER THREE ...................................................................................................................... 27

METHODOLOGY ....................................................................................................................... 27

3.0 Introduction............................................................................................................................. 27

3.1 Research Design...................................................................................................................... 27

3.2 Population of the study ........................................................................................................... 27

3.3: Sample size ............................................................................................................................ 28

3.4 Sampling procedure ................................................................................................................ 28

3.5 Research Instrument................................................................................................................ 28

3.5.1 Questionnaire ....................................................................................................................... 28

3.6 Validity and reliability ............................................................................................................ 28

3.6.1 Validity of instrument.......................................................................................................... 29

3.6.1 Multi-collinearity ................................................................................................................. 29

3.6.2 Reliability of instruments..................................................................................................... 30

3.7 Data gathering procedure........................................................................................................ 31

3.8 Data Analysis.......................................................................................................................... 31

3.9 Ethical considerations............................................................................................................. 32

3.10 Limitations of the Study........................................................................................................ 33

CHAPTER FOUR......................................................................................................................... 34

DATA PRESENTATION, ANALYSIS AND INTERPRETATION .......................................... 34

4.0 Introduction............................................................................................................................. 34

4.1 Response rate .......................................................................................................................... 34

4.2 Demographic characteristics of the Respondents................................................................... 34

4.2 Inventory management systems.............................................................................................. 36

4.3 Performance of super markets ................................................................................................ 39

4.4 Effect of just-in-time on performance of super markets in Kampala Uganda...................... 42

4.5 Effect of vendor managed inventory on performance of super markets in Kampala Uganda 43

4.6 Effect of material requirements planning on performance of foreign selected super markets,Kampala Uganda............................................................. 45

4.7 Multiple regression analysis ................................................................................................... 47

CHAPTER FIVE .......................................................................................................................... 50

DISCUSSIONS, CONLUSIONS AND RECOMMENDATIONS .............................................. 50

5.0 Introduction............................................................................................................................. 50

5.1 Discussions ............................................................................................................................. 50

5.1.1 Discussion of the effect of just-in-time on performance of super markets.......................... 50

5.1.2 Discussion of the effect of vendor managed inventory on performance of super markets.. 51

5.1.3 Discussion of the effect of material requirements planning on performance of supermarkets........................................................... 52

5.2 Conclusions............................................................................................................................. 53

5.2.1 Objective one; the effect of just-in-time on performance of super markets........................ 53

5.2.2 Objective two; the effect of vendor managed inventory on performance of super markets 53

5.2.3 Objective three; the effect of material requirements planning on performance of supermarkets............................................................. 53

5.3 Recommendation .................................................................................................................... 53

5.4 Contribution to knowledge ..................................................................................................... 54

5.5 Areas for further research ....................................................................................................... 54

REFERENCES ............................................................................................................................. 55

APPENDIX: I ............................................................................................................................... 64

RESEARCH QUESTIONNAIRE FOR EMPLOYEES ............................................................... 64