INFLUENCE OF LEAN INVENTORY MANAGEMENT TECHNIQUES ON PERFORMANCE OF MANUFACTURING FIRMS IN NAIROBI CITY COUNTY KENYA
Abstract
Procurement managers are bound to embrace the essence of adopting lean production which is a business initiative to reduce waste in manufacture production. To this extent therefore, this initiative leverage companies to achieve long term competitive advantages by putting in place the proper production systems and technologies particularly with regard to product quality, shortening product design time, the reducing of wastage improving end customer satisfaction and inventory management. The study was guided by the following objectives, the material requirement planning, the just in time technique, Analysis based costing and vendor managed inventory. The research objectives and research questions set out and the scope of study limited to manufacturing firms in Nairobi County, Kenya. The research used descriptive research design. Data was analyzed using both descriptive and inferential statistics where regression analysis was used to establish the effect of independent variables on the dependent variable. The population was 455 respondents drawn from manufacturing firms in Nairobi County with a sample size population of 213. The data was analyzed with SPSS version 23. The study findings showed that the four variables had a significant influence on firm performance. The study recommended that a similar research should be conducted with an aim at investigating the effects of inventory management techniques on firms’ performance with other variables or of other firms in other sectors, including the service industry in the Kenyan market. The study indicated that there had been limited amount of research on effects of lean inventory management techniques on firms’ performance of manufacturing firms in Kenya. Thus, the findings of this study served as a basis for future studies on lean inventory management. The lean inventory management techniques and firm performance of manufacturing firms had not been widely studied which presented gaps in African and Kenyan contexts.
Key Words; Material Requirement Planning, Just in Time, Vendor Managed Inventory System, ABC Analysis Performance
CITATION: Rono, E., & Miroga, J. (2019). Influence of lean inventory management techniques on performance of manufacturing firms in Nairobi City County Kenya. The Strategic Journal of Business & Change Management, 6 (4), 527 – 541.
Full Text:
PDFReferences
Azzouz E. & Zhang Y. (2013). The Relationship Between Activity based Costing, Business Strategy And performance In Moroccan Enterprises. Accounting and Management Information Systems, 12(1), 22–38.
Bagaka, C. (2017). Role Of Material Management On Performance Of Sugar Manufacturing Industries In Kenya Case Of Mumias Sugar Company Limited. The Strategic Journal of Business & Change Management, 4(12), 227 - 245,
Jonsson, P. and Mattsson, S. (2006). A longitudinal study of material planning applications in manufacturing companies. International Journal of Operations & Production Management, 26(9), 971-995
Maina, A. W., & Were, S. (2018). influence of vendor managed inventory on performance of retail outlets in Kenya. a case of Tuskys supermarket limited. The Strategic Journal of Business & Change Management, 5(4), 567 - 581,
Migwi, B.M. & Kwasira, J. (2016). Success Factors For The Implementation Of Vendor Managed Inventory Systems In Retail Supermarkets In Nakuru Town, Kenya. International Journal of Economics, Commerce and Management, United Kingdom, 4(9).
Monday, J. U (2008). Effects of Efficient Materials Management on Performance of Firms in Food and Beverage Manufacturing Industry in Nigeria, MBA Dissertation, Nigeria: Obafemi Awolowo University.
Mugenda, O.M and Mugenda, A.G (2003) Research Methods, Quantitative and Qualitative Approaches, Nairobi: Acts Press
Navon, R., &Berkovich, O. (2006). An automated model for materials management and Control, Construction Management and Economics, 24(6), 635-646.
Palevich, R. (2012). The lean sustainable supply chain: how to create a green infrastructure with lean technologies, Pearson Education, Inc., London
Porteus, E. (2008). Stochastic inventory theory, Journal Operations Research and Management Science 2, 605-652
Radzuan, K. (2015). Inventory Management Practices and its Effects on Vendor Managed Inventory Performance. Advanced Science Letters, 21, 2115-2118
Sandeep, K. (2007). Supply chain management: New Trends and Strategies, Infosys.
Shapiro, J. (2009). Modeling the supply chain (2nd ed.). Cengage, USA: Cengage Learning
Silver, A. (2007).Inventory management: University of Calgary, Haskayne School of Business, Calgary
Song, J. & Zipkin, P. (2011). Inventory control with information about supply condition, Management Science 42, 1409-1419
Yin, R. K. (2009). Case study research;Design and methods. CA: Sage productions.
Zaman, M. (2009). The Impact Of Activity Based Costing On Firm Performance: The Australian Experience. International Review of Business Research Papers, 5(4), 200-208
Zhang F., Mohammad N. and Che R. I. (2017). Investigating the Empirical Effect of ABC Stages on the Performance of Companies. Iranian Journal of Management Studies (IJMS), 10(1), 175-205
DOI: http://dx.doi.org/10.61426/sjbcm.v6i4.1407
Refbacks
- There are currently no refbacks.
This work is licensed under a Creative Commons Attribution 3.0 License.
PAST ISSUES:
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.