Inventory Management Practices and Performance of Mutego Distributors Ltd, Uganda.

Abstract

This study sought to establish the relationship between inventory management practices and performance of Mutego Distributors Ltd. The objectives of the study were: to examine the relationship between storage management practices and performance of Mutego Distributors Ltd, to establish relationship between materials handling practices and performance of Mutego Distributors Ltd and to examine the relationship between lead time management practices and performance of Mutego Distributors Ltd. The study used a cross sectional survey research design on a population which entailed the employees in different departments like administration, Stores, Operations/Production departments and others. A total of 86 respondents were selected for the study on 76 responded making the research valid. The researcher used both purposive sampling and simple random sampling techniques in selecting the samples. The study was guided by a quantitative paradigm, but with substantial complementary qualitative methods. Questionnaires were selfadministered which provided sufficient data from the sample selected, and interviews were used in order to get detailed data to complement and triangulate data which was collected using questionnaires. Data from the questionnaires was analyzed quantitatively using Statistical Package for Social Scientists (SPSS) where correlation was used to establish the relationship between inventory management practices and performance. Data from questionnaires was presented in form of frequency tables and bar graphs. The study findings confirmed that storage management practices have a significant positive influence on performance of an organization (r=0.185), material handling practices and organizational performance have no significant relationship (r = 0.038) and lead-time management practices have no significant influence on performance of organizations (r=0.163). The study recommends that organizations should adopt proactive attitudes towards the issue of proper inventory management practices. Being proactive requires maintenance of the right level of inventory at any point in time. The organizations should avoid the dangers that are inherent in keeping too little or too much of stock.