INFLUENCE OF INVENTORY CONTROL TECHNIQUES ON PERFORMANCE OF RETAIL CHAIN STORES IN NAIROBI CITY COUNTY, KENYA

James Mbugua Ndwiga

M.Sc Scholar (Procurement and Logistics),

Jomo Kenyatta University of Agriculture and Technology, Kenya

Dr. Dr. David Mburu Kiarie

Lecturer, Dedan Kimathi University of Technology, Kenya

CITATION: Ndwiga, J., M. & Kiarie, D., M. (2017). Influence of Inventory Control Techniques On Performance Of Retail Chain Stores In Nairobi City County, Kenya. International Journal of Human Resources and Procurement. Vol. 6 (5) PP 163 – 192.

ABSTRACT

The main objective of the study was to assess the effects of inventory control techniques on performance of retail chain stores. The study was guided by four specific objectives; to establish the influence of economic Order Quantity on inventory technique on performance of retail chain stores, to evaluate how ABC analysis inventory control technique affects performance of retail chain stores, to examine the influence of just in time inventory control technique on performance of retail chain stores and to ascertain the effects of VMI inventory control technique on performance of retail chain stores. The study target population was compromised of senior staff in the retail chain stores. The study adopted a descriptive survey design which is analytical and descriptive in nature. The data was collected using a structured questionnaire and administered by the research assistant through a drop and pick method. A total of 198 questionnaires were administered to the respondents. Quantitative data was analyzed using descriptive statistics such as mean scores, frequencies and percentages. Results of quantitative data analysis were presented in charts and tables. Content analysis was used to analyze qualitative data collected from interviews and open ended questions in questionnaires. Results of qualitative data were presented in narrative format. From the study findings on the regression equation established, taking all factors into account (independent variables) constant at zero performance in retail chain stores was 11.098. The data findings analyzed also shows that taking all other independent variables at zero, a unit increase in Economic Order Quantities would lead to a 0.769 increase in performance of retail chain stores; a unit increase in ABC Analysis would lead to a 0.709 increase in performance of retail chain stores, a unit increase in Just In Time would lead to 0.678 increase in performance of retail chain stores and a unit increase in Vendor Management Inventory would lead to 0.598 increase in performance of retail chain stores. This infers that Economic order Quantities contributed most to performance of retail chain stores. Based at 5% level of significance, Economic Order Quantities had a .000 level of significance; ABC Analysis showed a .003 level of significance, Just In Time show a .007 level of significance and Vendor Management Inventory show a .009 level of significance hence the most significant factor was Economic Order Quantities. Based on the study findings, the study concludes that performance of retail chain stores in Nairobi, Kenya is affected by Economic Order Quantities (EOQ), ABC Analysis, Just In Time (JIT) and Vendor Management Inventory (VMI) are the major factors of inventory control techniques that mostly affect performance of retail chain stores in Nairobi, Kenya. This study used qualitative and quantitative techniques. This study confined itself to the retail chain stores in Nairobi County, Kenya. A comparative study should be carried out to compare whether the findings also apply for other retail chain firms in Kenya and other countries in order to validate whether the findings can be generalized. Additionally, there is need to undertake another research to examine the other inventory management techniques such as RFID which could be influencing performance of retail chain stores in Kenya.

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