Inventory and Organisational Perfomance
UGANDA CHRISTAIN UNIVERSITY
MUKONO
FACULTY OF BUSINESS AND ADMINISTRATION
NAME: LOKIRU DAVID
REG NUMBER ESO8B05/365
COURSE UNIT: RESEARCH METHODS AND PROPOSOL
LECTURER: KATONO ISAAC
TUTOR: NAMAROME AGATHA
RESEARCH TOPIC:
TO ASSES THE IMPACT OF INVENTORY MANAGEMENT ON ORGANIZATIONAL PERFORMANCE-A CASE STUDY OF CHILDREN’S AIDSFUND UGANDA
STATEMENT OF THE PROBLEM
Inventory management has become a very prominent concern for both large and small companies as they strive for better quality and higher customer satisfaction (Mentzer et al. 2000; Chopra and Meindle 2001). According to a recent Deloitte Consulting Survey, 91 percent of North American manufacturers rank inventory management as very important or critical to their companies' success, yet only 2 percent of the manufacturers in the same survey rank their inventory management as world-class (Thomas 1999; Gulisano 2000).
Inventory management is a core cost center in organizations and its effective control implies that organizations generate reliable stocks to meet their customer obligations while avoiding stock holding costs. It is also important to note that, inventory control if poorly managed can contribute to increased expenses, lead to lose of profits to the firm due to stock outs, and deterioration of stock due to over stocking among others.
However, despite its importance, theoretical development, and popularity in the business and academic press, there is little empirical research that clearly defines inventory management and investigates its impact on the firm as a whole. Consequently, more information is needed to understand successful inventory management and problems encountered therein.
Therefore, on critical examination, the researcher felt that, their impact on
MUKONO
FACULTY OF BUSINESS AND ADMINISTRATION
NAME: LOKIRU DAVID
REG NUMBER ESO8B05/365
COURSE UNIT: RESEARCH METHODS AND PROPOSOL
LECTURER: KATONO ISAAC
TUTOR: NAMAROME AGATHA
RESEARCH TOPIC:
TO ASSES THE IMPACT OF INVENTORY MANAGEMENT ON ORGANIZATIONAL PERFORMANCE-A CASE STUDY OF CHILDREN’S AIDSFUND UGANDA
STATEMENT OF THE PROBLEM
Inventory management has become a very prominent concern for both large and small companies as they strive for better quality and higher customer satisfaction (Mentzer et al. 2000; Chopra and Meindle 2001). According to a recent Deloitte Consulting Survey, 91 percent of North American manufacturers rank inventory management as very important or critical to their companies' success, yet only 2 percent of the manufacturers in the same survey rank their inventory management as world-class (Thomas 1999; Gulisano 2000).
Inventory management is a core cost center in organizations and its effective control implies that organizations generate reliable stocks to meet their customer obligations while avoiding stock holding costs. It is also important to note that, inventory control if poorly managed can contribute to increased expenses, lead to lose of profits to the firm due to stock outs, and deterioration of stock due to over stocking among others.
However, despite its importance, theoretical development, and popularity in the business and academic press, there is little empirical research that clearly defines inventory management and investigates its impact on the firm as a whole. Consequently, more information is needed to understand successful inventory management and problems encountered therein.
Therefore, on critical examination, the researcher felt that, their impact on