Inventory management and business performance:

Abstract

The research aimed at investigating the role of inventory management to business performance using GBK Dairy products Limited as case study. This research concentrates on inventory practices and business performance basing on the general objective as; to determine the role of inventory management on the business performance in an organization. And for specific objectives as follows; to assess the effect of material requirement planning and the business performance in an organization, to examine the effect of enterprise resource planning and the business performance in an organization, to assess the effect that repetitive manufacturing has on business performance. The study was carried on using a detailed literature review thereby analysing what various authors have written about the topic. This was done by looking into different books. Data was collected using a self administered questionnaire and interviews. The study was conducted using 52 respondents among, administration and employees in GBK Dairy products limited Mbarara. The study adopted a case study and used both quantitative and qualitative methods of the study. With the qualitative method, the research focused mainly on understanding the role of inventory management to business performance while the descriptive statistics analysis was used to analyse numerical data collected from respondents. Literature was reviewed objective by objective following this order material requirement planning, enterprise resource planning and repetitive manufacturing. From the findings of the research study, the study findings also pointed out that material planning minimizes inventory to maintain high service coverage and to co-ordinate delivery schedules for manufacturing and purchasing activities consequently, creates employment chance and leads to creation and retention of a strong market share, profit margin. It was recommended that proprietors or owners and managers of businesses should invest in technology and this is especially in computers and related software as well as undertaking short courses in computer training programs where computers and related software help businesses handle many tasks repetitively in an efficient and effective manner at the smallest costs