Effect of Inventory Control Strategies on Inventory Record Accuracy in Kenya Power Company, Nakuru
Journal of Investment and Management
Volume 5, Issue 5, October 2016, Pages: 82-92
Received: Aug. 22, 2016;
Accepted: Sep. 21, 2016;
Published: Sep. 29, 2016
Views 10993 Downloads 276
Lilian Tundura, Department of Procurement and Logistics in the School of Entrepreneurship, Procurement and Management, Jomo Kenyatta University of Agriculture and Technology, Nakuru, Kenya
Daniel Wanyoike, Department of Procurement and Logistics in the School of Entrepreneurship, Procurement and Management, Jomo Kenyatta University of Agriculture and Technology, Nakuru, Kenya
The purpose of this study was to determine the effect of inventory control strategies on inventory record accuracy in Kenya Power Nakuru. The study looked at three inventory control strategies; cycle counting, inventory coding and computerized inventory accuracy. The three variables were individually and collectively related with inventory records accuracy. The study adopted a descriptive survey. The target populations for the study were the employees in Kenya Power Nakuru working in procurement, stores and finance departments. Since there are only 42 employees in the departments, all the employees were involved in the study as respondents. The researcher conducted a pilot study to test for validity and reliability of the research instruments before the actual study. Data was then collected through structured questionnaires that were self-administered by the researcher. Collected data was analyzed both descriptively and inferentially. Descriptive statistics was used to describe the study variables while correlation and regression analysis was used to relate the research variables. Single tailed t-test was used to test the hypotheses in the study. The study established that inventory control practices have significant positive influence on inventory records accuracy. The study recommends that public companies as well as private companies adopt inventory control practices as they are likely to experience enhanced efficiency and effectiveness in inventory records. The study suggests that further study is conducted to assess the role of management in implementing inventory control practices and whether inventory control practices can enhance operational performance of an organization.
Effect of Inventory Control Strategies on Inventory Record Accuracy in Kenya Power Company, Nakuru, Journal of Investment and Management.
Vol. 5, No. 5,
2016, pp. 82-92.
AgriFin (2013). Trade Finance: Warehouse and Inventory Management in Africa. Retrieved March 28, 2016, from AgriFin: http://agrifinfacility.org/trade-finance-warehouse-and-inventory-management-africa
Ahmed, F., Daas, R., Asaad, M. M. & Zien, R, (2015). The Influence of Inventory Management Practices Towards Inventory Management Performance in Malaysian Public Hospitals. International Academic Research Journal of Business and Technology 1 (2), 142-148
Braglia, M., & Bevilacqua, M. (2013). Fuzzy modelling and analytical hierarchy processing as a means of quantifying risk levels associated with failure modes in production systems. Production Planning & Control, 10 (4), 340-358
Christian Resources Industry’s Supply Chain Management Committee. (2005). Product Coding Best Practices: A guide to product coding for the Christian-resources industry. New York: Christian Resources Industry’s Supply Chain Management Committee.
CSCOInsight (2011). Five Strategies for Improving Inventory Management Across Complex Supply Chain Networks. CSCOInsight.
Drum Corps International. (2013). Redbeam Inventory Tracking Software. Retrieved March 28, 2016, from DCI Scanning: http://www.redbeamassetmanagement.co.za/RedbeamTrackingSoftware/InventoryTracking.aspx
Federation Highway Administration (1995). Recording and Coding Guide for the Structure Inventory and Appraisal of the Nation's Bridges. USA: US. Department of Transportation- Federation Highway Administration.
Financial Accounting Foundation (2011). Accounting Srtandards Codification. Norwalk: Financial Accounting Standards Board of the Financial Accounting Foundation.
Geothermal Development Company (2010). Procurement. Retrieved Juna 6, 2016, from Geothermal Development Company: http://www.gdc.co.ke/procurement/index.html
Hadley, G. (1960). A Family of Inventory Models. Management Science, 7 (1), 351-371.
Institute of Management Accountants (1999). Theory of Constraints; Management System Fundamentals. Montvale: Institute of Management Accountants.
Jihong, J. J. (1997). Yield comparison of push and pull control methods on production systems with unreliable machines. International Journal of Production Economics, 50 (1), 1-12.
Kang, Y. (2004). Information Inaccuracy in Inventory Systems: Stock Loss and Stockout. Laboratory for Manufacturing, 1 (1)1-29.
Kenya Power (2016). Kenya Power. Retrieved March 26, 2016, from About Kenya Power: http://www.kplc.co.ke/content/item/14/about-kenya-power
Kiisler, K. (2014). Inventory management – basic concepts. L-Consult OÜ.
Lee, Q. (2006). Strategic Guide to Cycle Counting & Inventory Accuracy. Kansas City: Strategos, Inc.
Lwiki, T., Ojera, O., Mugenda, N., & Wachira, V. (2013). The Impact of Inventory Management Practices on Financial Performance of Sugar Manufacturing Firms in Kenya. International Journal of Business, Humanities and Technology. 3, (5), 76-85
Munyao, M. M., & Omulo, C. O. (2015). Role of Inventory Management Practices on Performance of Production Department’ A Case of Manufacturing Firms in Kenya. International Journal of Economics, Commerce and Management. 3 (5), 1625-1656
Oballa, D., Waiganjo, E. & Wachiuri, E. (2015). Effect of Inventory Management Practices on Organizational Performance in Public Health Institutions in Kenya: A Case Study of Kenyatta National Hospital. International Journal of Education and Research, 3 (3), 707-715
Onchoke, B. N., & Wanyoike, D. M. (2016). Influence of Inventory Control Practices on Procurement Performance of Agrochemicals Distributors in Nakuru Central Sub-County, Kenya. International Journal of Economics, Finance and Management Sciences. 4 (3), 117-126
Opeyemi, A. (2013). Design of a Computerized Inventory Management System for Supermarkets. International Journal of Science and Research, 2 (9), 340-344.
Piasecki, D. (2015). Cycle Counting and Physical Inventories. Kenosha: Inventory Operations Consulting LLC.
Preston, C. C., & Colman, A. M. (2000). Optimal number of response categories in rating scales: reliability, validity, discriminating power, and respondent preferences. 104 ((2), 1-15).
Rand, K. (2000). Critical chain: the theory of constraints applied to project management. International Journal of Project Management, 173-177.
REM Associates of Princeton. (1999). Inventory Cycle Counting. Nassau: REM Associates of Princeton.
Rossetti, M. D. (2000). Inventory Cycle Counting-A Review. Fayetteville: University of Arkansas.
Schrady, D. A. (2006). Operational definitions of inventory record accuracy. Naval Research Logistics Quarterly, 17 (1), 133–142.
Schreibfeder, J. (2014). The First Steps to Achieving Effective Inventory Control. Microsoft.
Singh, D. K. (2013). JIT: A Strategic Tool of Inventory Management. International Journal of Engineering Research and Applications, 3 (2), 133-136.
SME ToolKit. (2016). Managing Your Inventory. Retrieved March 28, 2016, from SME ToolKit South Africa: http://southafrica.smetoolkit.org/sa/en/content/en/587/Managing-Your-Inventory
Steinhoff, C. J. (2002). Best Practices in Achieving Consistent, Accurate Physical Counts of Inventory and Related Property. USA: United States General Accounting Office.
Strategos, Inc. (2014). Cycle Counting & Inventory Record Accuracy. Kansas City: Strategos, Inc.
Supply Chain Metric. (2016). Inventory Record Accuracy. London: Supply Chain Metric.
Teunter, T. L. (2002). Inventory Strategies For Systems With Fast Remanufacturing. Erasmus Research Instirute of Management.
Tompkins, B. (2012). Cycle Counting Increase Inventory Accuracy & Eliminate Wall-to-Wall Physical Inventory. Japan: The Supply Chain Consortium.
Wanjara, K. (2015). Influence of Internal Control System on the Financial Performance of Kenya Power. Nairobi: KCA University.
Wild, T. (2011). Improving Inventory Record Accuracy. UK: Taylor & Francis.
Woeppel, M. (2000). Manufacturer's Guide to Implementing the Theory of Constraints. Congo: CRC Press.
Zipkin, P. H. (2000). Foundations of Inventory Management. New York: McGraw. Hill.