Abstract
Purpose: the general objective of was to determine role of inventory optimization on performance of state corporations in Kenya.Methodology: This research study adopted a descriptive research design approach targeting heads of procurement at the 187 state corporations. This method was preferred because it allowed an in-depth study of the subject. The study preferred this method because it allowed an in-depth study of the subject. To gather data, structured questionnaire will be used to collect data from 187 respondents. The research focused on primary data that was collected from questionnaires distributed to the target groups. This study collected both qualitative and quantitative data. After data collection the data was edited and coded in readiness for analysis by the researcher. The qualitative data collected was subjected to content analysis. On the other hand, the study used descriptive and inferential statistics to analyze the quantitative data. This study utilized the SPSS version 23 software to perform correlation and regression analysis on the collected data. The analyzed data was presented using statistical and graphical techniquesResults: R square value of 0.768 means that 76.8% of the corresponding variation in performance of state corporations in Kenya can be explained or predicted by (safety stock management, inventory control techniques, information technology integration and demand and supply forecasting) which indicated that the model fitted the study data. The results of regression analysis revealed that there was a significant positive relationship between dependent variable and independent variable at (β = 0.761), p=0.000 <0.05).Conclusion: The findings of the study indicated that; safety stock management, inventory control techniques, information technology integration and demand and supply forecasting have a positive relationship with performance of state corporationsPolicy recommendation: the study recommended that public institutions should embrace inventory optimization practices so as to improve their performance.
Highlights
Background of the StudyInventory optimization is a huge determinant for the prosperity or downfall of a business (Shafi, 2014)
R square value of 0.768 means that 76.8% of the corresponding variation in performance of state corporations in Kenya can be explained or predicted by which indicated that the model fitted the study data
The findings presented shows that taking all other independent variables at zero, a unit increase in safety stock management will lead to a 0.537 increase in performance of state corporations in Kenya
Summary
Background of the StudyInventory optimization is a huge determinant for the prosperity or downfall of a business (Shafi, 2014). Mittal (2014) define inventory optimization refers to supply chain applications which aids in the enhancement of inventory control and its management across an extended supply network, which organizes the latest techniques and technologies. Inventory optimization practices are models used by organizations in order to manage and control their stocks. According to Stevenson (2010), inventory optimization practices involves the systems that are implemented with a purpose to ensure optimal level of stocks are kept in the organization and it involves activities such as recording and monitoring the levels of stocks in the organization, forecasting the demand of the materials and products and making the decisions of how much to order, how to order and when to order. Inventory optimization involves all the activities that guarantee the customers access to a particular products and services upon demand (Miller, 2012)
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