Inventory Management Techniques and Performance of Selected Supermarkets in Kampala Central Division, Uganda

ABSTRACT

The study sought to assess the effect of inventory management techniques on performance of selected super markets in Kampala Central Division, Uganda. The study was guided by theory of Inventory Management by Grabara (2007).It was guided by three specific objectives, that included; to determine the effect of just-in-time inventory on performance of selected super markets in Kampala Central Division, Uganda, to establish the effect of vendor managed inventory on performance of selected super markets in Kampala Central Division, Uganda and to establish the effect of material requirements planning on performance of selected super markets in Kampala Central Division, 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 selected super markets in Kampala Central Division, Uganda, this effect therefore implies that just-in-time highly contribute to the performance of selected super markets in Kampala Central Division, Uganda, the findings revealed that there is a significant effect vendor managed inventory has on performance of selected super markets in Kampala Central Division, Uganda , findings of this study proved a weak positive significant effect material requirements planning has on performance of selected super markets in Kampala Central Division, Uganda. Still the conclusions were that; there is a weak positive significant effect just-in-time has on performance of selected super markets in Kampala Central Division, Uganda (β=0.491, Sig=0.000), effective vendor managed inventory significantly improves performance of selected super markets in Kampala Central Division, Uganda (β=0.425, Sig=0. 000), Material requirements planning highly affects the performance of selected super markets in Kampala Central Division, Uganda (β=0.533, Sig=0.000). The researcher recommended that the: the owners should develop a good system to manage all the inventory so that there is effectiveness in inventory management techniques 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 techniques 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 techniques are somehow lacking, little is done through to improve performance of super markets in Kampala Central Division, Uganda. The research gap has been filled by this study. The study covered both the content and geographical gap of inventory management techniques and performance.

TABLE OF CONTENT

DECLARATION........................................................................................................... i

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

DEDICATION .......................................................................................................iii

ACKNOWLEDGEMENT ..............................................................................................iii

TABLE OF CONTENT................................................................................................. v

LIST OF TABLES ..................................................................................................... viii

ABSTRACT............................................................................................................ix

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

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

1.0 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........................................................................................ 4

1.1.4 Contextual Perspective ........................................................................................ 5

1.2 Problem Statement ................................................................................................ 5

1.3 Purpose of the Study.............................................................................................. 6

1.4 Specific Objectives:................................................................................................ 6

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

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

1.7.1 Geographical Scope............................................................................................. 7

1.7.2 Content Scope .................................................................................................... 7

1.8 Significant of Study ................................................................................................ 4

1.9 Operational Definition of Key Terms ........................................................................ 8

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

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

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

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

2.2 Conceptual Review................................................................................................12

2.3 Review of related literature....................................................................................13

2.3.1 Effect of just-in-time on Performance of selected super markets in Kampala ...........13

2.3.2 Effect of Vendor Managed Inventory on Performance ofselected Supermarkets .......15

2.3.3Effect of Material Requirements Planning (MRP) on Performance of selected super markets ............................17

2.4 Empirical review ...................................................................................................22

2.4.1 Inventory management ......................................................................................22

2.4.2 Performance......................................................................................................23

2.5 Empirical studies...................................................................................................26

2.5 Research Gaps......................................................................................................28

CHAPTER THREE .....................................................................................................30

METHODOLOGY.......................................................................................................30

3.0 Introduction .........................................................................................................30

3.1 Research Design...................................................................................................30

3.2 Population of the study .........................................................................................30

3.3: Sample size.........................................................................................................31

3.4 Sampling Procedure ..............................................................................................32

3.5 Research Instrument.............................................................................................32

3.5.1 Questionnaire ....................................................................................................32

3.6 Validity and Reliability ...........................................................................................32

3.6.1 Validity of Instrument.........................................................................................33

3.6.2 Reliability of Instruments ....................................................................................33

3.7 Data gathering Procedure......................................................................................34

3.8 Data Analysis........................................................................................................35

3.9 Ethical Considerations ...........................................................................................37

CHAPTER FOUR.......................................................................................................38

DATA PRESENTATION, ANALYSIS AND INTERPRETATION...................................38

4.0 Introduction .........................................................................................................38

4.1 Response rate ......................................................................................................38

4.2 Demographic characteristics of the Respondents .....................................................39

Table 4.1: Demographic characteristics of the Respondents ...........................................39

4.2 Inventory Management Techniques ........................................................................40

4.3 Performance of selected Supermarkets ...................................................................43

4.4 Effect of just-in-time on performance of selected Supermarkets in Kampala Central Division, Uganda .........................46

4.5 Effect of Vendor Managed Inventory on Performance of selected Super markets in Kampala Central Division, Uganda.....................48

4.6 Effect of Material Requirements Planning on Performance of selected Supermarkets, Kampala Central Division, Uganda....................50

4.7 Multiple regression analysis ...................................................................................52

CHAPTER FIVE ........................................................................................................55

DISCUSSIONS, CONLUSIONS AND RECOMMENDATIONS.....................................55

5.0 Introduction .........................................................................................................55

5.1 Discussions ..........................................................................................................55

5.1.1 Discussion of the effect of Just-in-time on Performance of selected Supermarkets ...55

5.1.2 Discussion of the effect of Vendor managed inventory on Performance of selected Supermarkets..................56

5.1.3 Discussion of the effect of Material Requirements Planning on Performance of selected supermarkets ..............57

5.2 Conclusions ..........................................................................................................58

5.2.1 Objective one; the effect of just-in-time on Performance of selected Supermarkets .58

5.2.2 Objective two; the effect of Vendor Managed Inventory on Performance of selected Super markets..................58

5.2.3 Objective three; the effect of Material Requirements Planning on Performance of selected Super markets....................58

5.3 Recommendation..................................................................................................59

5.4 Contribution to knowledge.....................................................................................59

 5.5 Limitations to the study.................................................................................................... 60

5.6 Areas for further research......................................................................................61

REFERENCES...........................................................................................................62

APPENDICES ...........................................................................................................72

APPENDIX: I ...........................................................................................................72

RESEARCH QUESTIONNAIRE FOR EMPLOYEES.....................................................72

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