Thesis:

Effects of inventory management practices on operational performance in Mombasa county government

nventory management is the process of keeping track of all the stock in an organization. These include purchases and procurements such as raw material and other inputs. It also includes the work in progress items which include unfinished products. These items need to be managed in such a manner that wastages and losses are minimized and productivity optimized. This study aimed at establishing the effect of inventory management practices on the operational performance of Mombasa County government. The specific objectives included the following: to examine the impact of JIT model on the operational performance of Mombasa County government; to assess the effect of Activity Based Costing (ABC) on the operational performance of Mombasa County government; to determine the impact of Economic Order Quantity (EOQ) on the operational performance of Mombasa County government and to establish the impact of stock taking practice on the operational performance of Mombasa County government. The research problem that the study addressed stated that Mombasa County government faces many challenges in its operational performance which can be attributed ineffective inventory management practices. Interventions have been sought both at the national and county government levels in order to improve the operational performance of county governments in Kenya. However, despite all the efforts undertaken, the operational performance in the county governments in Kenya is not optimal. Although several studies have been undertaken to establish the factors influencing the operational performance in county governments none directly addresses the influence of the management of inventory on the performance in county governments. This research therefore sought to establish the effect of inventory management practices on the operational performance of Mombasa County government. The research study reviewed Just in Time Theory, ABC theory, EOQ theory and the Theory and the Systems Theory. This study used a descriptive survey design. The target population was all the 250 employees working in Mombasa County government that included ICT officers, Finance officers, Budgeting officers, Internal Audit officers and Procurement officers. Sample size of 96 employees was drawn from and was selected by the use of stratified random sampling. Data was collected using a questionnaire. Data analysis was done with the aid of SPSS version 28. The descriptive analysis of the study revealed that one can meet customer needs and improve product productivity and flexibility by implementing JIT supply chain management techniques. Customers, suppliers, goods, and supply chains are a part of these operations are allotted charges by ABC. EOQ is the inventory level at which ordering and holding expenses are minimized. And that there was a positive and significant correlation on the influence of Inventory Control Techniques on Service Delivery in Parastatals in Kenya. Inferential statistics was displayed by the use of correlations and regression analysis. The ethical considerations for this study included confidentiality, informed consent, privacy and anonymity. The study concluded that JIT practices have the strongest influence on operational performance. The county government should prioritize adopting and enhancing JIT practices to achieve significant performance improvements. Regular and accurate stocktaking has a substantial positive impact on operational performance. Investing in effective stocktaking procedures can lead to considerable enhancements in inventory management and overall efficiency. ABC practices positively affect operational performance by providing precise cost allocation and better resource management. Implementing ABC can help the county government make informed decisions and improve operational efficiency. EOQ has the lowest, yet still significant, positive impact on operational performance. Optimizing order quantities through EOQ can help reduce costs and maintain optimal inventory levels, contributing to improved performance. The study recommended that Mombasa County government should Invest in advanced inventory management software that integrates JIT, ABC, EOQ, and stocktaking functionalities. This technology can provide real-time data, improve accuracy, and streamline inventory management processes. Regularly train staff on the latest inventory management practices and tools. Continuous professional development ensures that employees are equipped with the necessary skills to implement and maintain effective inventory management systems. Establish a culture of continuous improvement within the inventory management department. Regularly review and assess current practices, and make adjustments as needed to ensure optimal performance and adaptability to changing conditions. Foster strong relationships with suppliers to enhance coordination and reliability in the supply chain. Effective communication and collaboration with suppliers can support JIT practices and ensure timely delivery of materials. And implement key performance indicators (KPIs) to monitor the effectiveness of inventory management practices. Regularly track and analyze these metrics to identify areas for improvement and ensure that inventory management practices are contributing to overall operational performance.