Effects of Inventory Management System on Organizational Performance: Case Study of Grain Bulk Handlers Limited

Abstract

This study sought to critically analyze Inventory Management System as a determinant for performance of Grain Bulk. It sought to establish effects of inventory management system on organizational performance. Specifically it evaluated effects of inventory; control, speed, cost and accountability on organization performance. Having not yet adopted inventory management systems, organizations face stock out cost, which results into great loss. This study developed research questions such as what are the effects of inventory; control, speed, cost and accountability on organization performance. The study adopted a descriptive research design which ascertained and described characteristics of the variable of interest in a situation. The target population for this study was 672 workers with a size sample of 100.

The study used semi-structured questionnaires with both closed and open end. The filled-in and returned questionnaires were coded and entered into a Statistical Package for Social Sciences version 22.0. Descriptive statistics such as means, standard deviations as well as regressions analysis was done to establish relationships between the variables of the study and organizational performance. The findings revealed that inventory management system is positively related and is significant for organizational performance in Grain Bulk. Three of the four attributes of inventory management system were found to be positively related to organizational performance. The researcher thus recommended that inventory management should be held strategically to boost organizational performance in Grain Bulk Handlers LTD.