INFLUENCE OF JUST-IN-TIME INVENTORY STRATEGY ON PERFORMANCE OF VEHICLE MANUFACTURING FIRMS IN KENYA
Abstract
The study’s main objective was to establish the influence of Just-in-Time inventory strategy on performance of vehicle manufacturing firms in Kenya. The study guided by the following specific objectives: to determine effects of lead-time, examine the effect of cost reduction, effects of organization policy and buyer/supplier relationship on performance of vehicle manufacturing firms. This study used a target population of 400 employees and targeted a sample size of 100 respondents that represented 25% of target population. Primary data collection method was used. This was derived mainly through the administration of questionnaires to the respondents personally, which was further processed and analysed. The data was collected from target respondents through the questionnaire administrative technique. The study findings revealed that lead time, cost reduction, organization policy and buyer supplier relationship have a significant role in ensuring full implementation of JIT as well as ensuring that performance of vehicle manufacturing firms is achieved to the best of an organization. The study recommends that manufacturing organizations continuously institute or improve on prevailing strategy due to its immense benefits especially in enhancing coordination and stock replenishment, also organizations should adopt and appreciate new information technology equipment in order to improve customer relations, which is a cornerstone for customer satisfaction. The study findings were of significance to vehicle manufacturing companies in Kenya in order to achieve benefits that accrue with the adoption of JIT inventory strategy.
Key Words: Lead-Time, Cost Reduction, Organization Policy, Buyer/Supplier Relationship, Organization Performance
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DOI: http://dx.doi.org/10.61426/sjbcm.v5i3.877
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