Effect of Inventory Management Practices on Performance of Food Processing Firms in Nairobi County, Kenya.
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Date
2024
Journal Title
Journal ISSN
Volume Title
Publisher
Chuka University
Abstract
the better performance of any firm. The food processing sub sector
performance has been declining thus its contribution to the Gross
Domestic Product has reduced to 10% thus leading to operation
inefficiency. The overall objective of the study was to probe the effect
of inventory management practices on performance of food
processing firms in Nairobi County. The study was premised on the
lean theory. Descriptive design was employed.
A population of 172 food processing firms and a sample size of 120
firms was determined. Stratified and simpler random sampling were
used to pick specific firms while data was collected using structured
questionnaires. Descriptive statistics aided in describing the primary
characteristics of the data. Regression analysis aided to ascertain the
effect of inventory management on performance of food processing
firms with the aid of SPSS version 28. T-statistics were used to gauge
the significance of individual objectives at 5%confidence level while
F-statistic was used to establish the overall significance of the model.
The study established inventory management was found to be
positively correlated to performance, ((regression coefficient 0.492, p
value0.000). The study concluded that inventory management
practices had substantial impact on performance on Food processing
firms and recommends that firms should establish adequate quality
control and quality monitoring points in order to get the best quality
during the production and also as a way of minimizing on cost. The
findings will contribute to theory of supply chain management and
policy making regarding different of inventory management practices
to ensure increase in performance.
Description
Article
Keywords
Keywords: Inventory Management Practices, Performance and Food and Processing Firms.
Citation
Mayabi Peres Linda, Thogori Miriam & Masinde Joseph (2024). Effect of Inventory Management Practices on Performance of Food Processing Firms in Nairobi County, Kenya. In: Mutembei Henry, Nduru Gilbert, Munyiri Shelmith, Gathungu Geofrey, Kiboro Christopher, Otiso Wycliffe, Rithaa Jafford, Miriti Gilbert, Gichumbi Joel, Mwathi David, Gitonga Lucy, Nanua Jackin, Kahindi Roseline, Jonathan Kathenge & Muthui Zipporah (Eds.). Proceedings of the Chuka University Tenth Annual International Research Conference held in Chuka University, Chuka, Kenya from 5th to 6th October, 2023. 343-350 pp