Effect of inventory management techniques on customer satisfaction in manufacturing industries

Abstract

The purpose of the study was to establish or investigate the effect of inventory management techniques on customer satisfaction in Mukwano group of companies basing on the following objectives, to determine the effect of Economic order quantity on customer satisfaction, to examine the effect of ABC technique on customer satisfaction and to investigate the effect of just-in-time technique on customer satisfaction. The researcher used descriptive and quantitative research designs. Correlation co-efficient was used to determine the relationship between inventory management techniques and customer satisfaction. The sample size of 97 respondents was selected using stratified random sampling. Self administered questionnaires were used to collect data. Primary data was collected through use of questionnaires and secondary data was collected from text books, magazines, journals and articles. Data was collected, edited and analyzed. According to the findings, the organization involves in production planning, inventories are reviewed periodically which improves customer satisfaction. The study showed positive relationship between inventory management and customer satisfaction at Pearson correlation coefficient r=0.997. It was also concluded that inventory management techniques were effectively considered in Mukwano group of companies. It was recommended that management of Mukwano group of companies should provide fringe benefits to workers in order to improve on their behaviors. Also was recommended that management of MGCS should ensure that inventory management techniques are practiced by people with trained qualifications and skills.