The Effect of Inventory Management on the Operational Performance in a Business’ Stores a Case of Crown Beverages Limited

Abstract

The study examined on the effect of inventory management on operational performance in a business’ stores with specific reference Crown Beverages Limited. It was guided by three research objectives which were; the effect of economic order quantity, just in time and vendor managed inventory on operational performance in a business’ store.

The study used a case study design with both qualitative and quantitative results. Data was collected using questionnaires and interviews.

In data analysis frequencies, percentages and mean, correlations and regressions to show the magnitude of effect the independent variables have on the dependent variable. Study findings revealed that the study findings showed a positive significant relationship (r = 0.394**, p < 0.01) between economic order quantity and operational performance in a business’ store, the study findings showed a positive significant relationship (r = 0.294**, p < 0.01) between just in time and operational performance in a business’ store, the study findings showed a positive significant relationship (r = 0.312**, p < 0.01) between vendor managed inventory and operational performance in a business’ store.

It can therefore be concluded that that inventory management has a positive and significant relationship on operational performance in a business’ store based on the findings of the study is presented according to the objectives of the study with back up of reviewed literature to make the discussion more authentic.

It was therefore recommended that Crown Beverages Limited should ensure that economic order quantity is enhanced through ensuring that the firm orders inventory when current inventory level has reached a certain defined level this will increase operational performance of the company.

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