EFFECTS OF INVENTORY OPTIMIZATION ON PERFORMANCE OF GOVERNMENT MINISTRIES IN KENYA
Abstract
The study main objectives were to determine effect of strategic electronic sourcing practices on performance of government ministries in Kenya. The study specific objectives were to establish the effects of inventory optimization on performance of Government Ministries in Kenya. The specific objectives were; to establish the effect of lead time on performance of Government Ministries in Kenya, to determine the effect of customer service level on performance of Government Ministries in Kenya, to evaluate how organizational policy affects performance of Government Ministries in Kenya and to find out how ICT integration affects performance of Government Ministries in Kenya. The study was anchored on theory of constraints, resources based theory, institutional theory and innovation diffusion theory. The study targeted 1315 employees in procurement department from 21 ministries in Kenya governments. Cluster and random sampling technique was used to select a sample size of 310 respondents. The research utilized primary data obtained through the use of questionnaires. Cronbach’s alpha coefficient was used to determine reliability. Descriptive techniques were used to analyze quantitative data in which frequencies and proportions were used in analyzing the views of the respondents regarding different items presented in the study. In addition, inferential statistical methods were employed especially regression analysis and correlation analysis, to draw conclusions from the study data. The findings showed that organization policy, customer service, ICT integration and lead time had a positive and significant effect on Performance of government ministries. There is therefore need for government ministries to have clear policies on regular assessment of supplier’s capabilities.
Key words; lead time, customer service level, organizational policy, ICT integration, inventory optimization and performance
CITATION: Jepchirchir, J., & Noor, I. (2019). Effects of inventory optimization on performance of government ministries in Kenya. The Strategic Journal of Business & Change Management, 6 (4), 142 – 160.
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DOI: http://dx.doi.org/10.61426/sjbcm.v6i4.1378
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