INFLUENCE OF INVENTORY MANAGEMENT ON PERFORMANCE OF THE ENERGY SECTOR IN KENYA

Kamau Fredrick, Mwangangi Patrick

Abstract


Every firm whether big or small that wants to achieve success must take inventory management into consideration. The most important and challenging aspect of inventory management is achieving a balance between inventory supply and to ensure there is no overstocking or under-stocking. The general objective of this study was to determine the influence of inventory management on the performance of the energy sector in Kenya. Specifically, the study sought to determine the influence of order processing, warehouse management, inventory management systems and inventory tools and techniques on the performance in the energy sector in Kenya. This study used of a descriptive explanatory research design. The research targets a population of 170 staff working in supply chain departments in Kenya Electricity Generating Company, Kenya Electricity Transmission Company and Rural Electricity Authority. Slovin's Formula was adopted in this study to determine the sample size. Both purposive sampling and a simple random sampling were used in the selection of the sample size. The study used primary data, which was used by use of semi-structured questionnaires. The research instruments generated both qualitative and quantitative data. For analyses of descriptive data, thematic content analysis was used and for easy understanding, the results were presented in form of prose. Descriptive and inferential statistics with the assistance of SPSS version 22) was used in the analyses of quantitative data. Presentation of the research findings was in the form of figures and tables that was inclusive of pie and bar charts. The association between dependent and independent variables sought using regression analysis, content analysis and inferential statistics. The study found out that order processing has a significance influence on performance of energy sector in Kenya. The study also established that order preparation has a positive significance influence on performance of energy sector in Kenya. Moreover, the study found out that order consolidation has a positive influence on significance influence on performance of energy sector in Kenya. Further, the study established that order transmittal has a significance influence on cost minimization, satisfaction of customers, and firms’ profitability. The study recommends that the energy transmission and generation companies should adopt order processing so as to cope up with the increase in market demands related to the flexibility, speed, and efficient delivery of goods and services. The study also recommends that energy transmission and generation companies should improve on its warehouses to cater for special storage requirements. Further, the study recommends that energy generation and transmission companies should adopt the use of the just in time, lean production and material requirement planning so as to improve on their storage management and accessibility and retrieval of resourceful information.

Full Text:

PDF

References


Buyukkaramikli, N. Ooijen, H., & Bertrand, J. (2015). Intergrated Inventory Control and Management. Yearly Operations Research, 23(1), 185-206

Chalotra, V. (2013). Management of Inventory and SMEs Performance: Analytical Research in Supply Chain. Vision, 17(3), 213-222.

Chou, Y., Lu, C., & Tang, Y. (2012). Identification of Inventory Challenge in aerospace firm by the use of constraints theory. International Journal of Production Research,50(16), 4686-4698.

Dimitrios, P. K. (2008). Influence inventory management organizational performance. International Journal of Productivity and Performance Management, 57(5), 355 –369.

Fernandes, R., Gouveia, B., & Pinho, C. (2013). Integrated inventory valuation in multi-echelon production/distribution systems. International Journal of Production Research, 51(9), 2578 -2592.

Folinas, C. & Shen, C. (2014). Exploring the Linkage between Inventory & Financial Performance in Agricultural-based Machinery Firms. International Journal of Food and Agricultural Economics, 2(4), 1-12

Genevieve, A. (2017). The System of Inventory Management for Emels Ghana. Retrieved from https://air.ashesi.edu.gh/bitstream/handle/20.500.11988/347/

Greener, S.L. (2008). Business Research Methods. Copenhagen: Ventus Publishing ApS.

Harchol-Balter, M. (2012). Scheduling: Non-Pre-emptive, Size-Based Policies. Performance Modeling and Design of Computer Systems, 23, 499-456.

Kamau, L. W. & Kagiri, A. W. (2015). The effect of inventory management on firms’ competitiveness: A case of Safaricom Kenya Ltd. International Academic Journal of Procurement and Supply Chain Management, 1(5), 72-98


Refbacks

  • There are currently no refbacks.