INVENTORY MANAGEMENT PRACTICES AND FINANCIAL PERFORMANCE OF BUGISU COOPERATIVE UNION, MBALE CITY
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2024-10-25
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Abstract
This study sought to establish the relationship between inventory management practices and financial performance of Bugisu Cooperative Union. The objectives of the study were: to examine the relationship between storage management practices and financial performance of Bugisu Cooperative Union, to establish relationship between materials handling practices and financial performance of Bugisu Cooperative Union and to examine the relationship between lead time management practices and financial performance of Bugisu Cooperative Union. The study used a cross sectional survey research design on a population which entailed the employees in different departments like administration, Stores, Operations/Production departments and others. A total of 86 respondents were selected for the study and 76 responded making the research valid. The researcher used both purposive sampling and simple random sampling techniques in selecting the samples. The study was guided by a quantitative paradigm, but with substantial complementary qualitative methods. Questionnaires were self- administered which provided sufficient data from the sample selected, and interviews were used in order to get detailed data to complement and triangulate data which was collected using questionnaires. Data from the questionnaires was analyzed quantitatively using Statistical Package for Social Scientists (SPSS) where correlation was used to establish the relationship between inventory management practices and performance. Data from questionnaires was presented in form of frequency tables and bar graphs. The study findings confirmed that storage management practices have a significant positive relationship on financial performance of an organization (r=0.956), material handling practices and financial performance have no significant relationship (r = 0.978) and lead-time management practices have no significant related on financial performance of organizations (r=- 0.978). The study recommends that organizations should adopt proactive attitudes towards the issue of proper inventory management practices. Being proactive requires maintenance of the right level of inventory at any point in time. The organizations should avoid the dangers that are inherent in keeping too little or too much of stock.