INVENTORY MANAGEMENT STRATEGIES AND PERFORMANCE OF COMMERCIAL GOVERNMENT ENTITIES IN KENYA
Abstract
The general objective of this study was to explore inventory management strategies and the performance of commercial government entities in Kenya. Specifically, the study looked at Just-In Time, Economic order quantity model; Perpetual Inventory System and ABC inventory Model in relation to performance of commercial Government Entities in Kenya. The study was anchored on four theories, namely; inventory control theory; Lean theory; theory of constraints and strategic choice theory. Descriptive research design was adopted and the scope was 54 commercial Government entities in Kenya sourced from the presidential taskforce report on parastatal reforms of the year 2013. A total of 54 supply chain managers were the target population. The study adopted census survey of the 54 commercial Government entities in Kenya. The study used primary data that was collected through a structured questionnaire, analyzed using descriptive and inferential statistics and presented by use of frequency tables, figures and graphs. Correlation and multiple linear regression model was used to determine the degree of association between the study variables. The study established that Perpetual Inventory System was the highly adopted and practiced inventory management strategy among commercial Government entities in Kenya followed by ABC inventory Model, Economic order quantity model and Just-in Time respectively. The study concluded that ABC inventory Model had the largest influence on performance of commercial Government entities in Kenya followed by economic order quantity model, Just-in Time and lastly perpetual inventory system. The study recommended that the information and communication managers (ICT) managers of the entities in Kenya should improve on the functionality and effectiveness of the JIT system in place. The supply chain managers of the commercial Government entities in Kenya should formulate relevant policies that guide use of economic order quantity model in their organization. Supply chain managers of the commercial Government entities in Kenya should focus more on ABC inventory model in order to greatly influence performance of their institutions and pay least attention on perpetual inventory system since it does not greatly contribute to their performance.
Key Words: Just-In Time, Economic Order Quantity Model; Perpetual Inventory System, ABC Inventory Model
CITATION: Elijah, Y. D., & Ngugi, P. K. (2021). Inventory management strategies and performance of commercial government entities in Kenya. The Strategic Journal of Business & Change Management, 8 (2), 87 – 106.
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DOI: http://dx.doi.org/10.61426/sjbcm.v8i3.2029
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