The Effect of Inventory Management on the Performance of Business Organization in Uganda Case Study: Follam Hotel

Abstract

The study examined the effect of inventory management on the performance of business organization in Uganda, Follam Hotels. The specific objectives of the study were to establish the effects of stock valuations on the performance of business organizations, to establish the effect of stock taking and the effect of stock records on the performance of business organization in Uganda. The effect of inventory management on organization performance in most Hotels remains a debated problem for the over past years, manufacturing industries having proficient challenges while trying to carry out its inventory management and material control processes, that has not been solved for many years. The study therefore employed a case research design which involved an intensive analysis of the research variables. The study used a sample size of 36 and these respondents included respondent from human resource department, procurement, operations and production, marketing, finance, plus respondents from the support staffs of Follam Hotel, purposive and random sampling techniques were used to select the respondents. The respondents were issued with self-administered questionnaires which had both opened and closed ended questions. The study found out that one of the effects of inventory management that led to the performance of business organizations in Uganda was that inventory management was given adequate attention as a prerequisite of improved performance and profitability. The study then concludes that inventory management determine organization profit level, assess their effectiveness and efficiency, ensure that each and every item of stock is identified with its principal function, helps the hotels keep track of price changes of all items of stock by keeping records of purchase prices. Therefore, suggests that more studies should be conducted in the inter-related topics like the role of stock control on the performance of service delivery of central government of Uganda, so that organizations can effectively enhance their performances.

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