Abstract
Effective Inventory management and control systems are critical to the profitability and overall performance of many companies. Many Adventist Institutions have trouble resulting from operating losses and cash flow problems. This could be because of low income, poor management of inventory systems, and lack of financial discipline. The aim of this study was to investigate the effects of the management of warehousing inventory systems on Seventh day Adventist institution’s financial performance in Kenya. The main objective is to evaluate the effects of inventory warehousing systems on Seventh Day Adventist Institution’s financial performance of. The specific objective that guided this research was to assess the effect of Inventory warehousing systems on the financial performance of Adventist Book Centers. The researcher used descriptive research design in undertaking this study. The target population was 216 employees at HHES while sample size was 30% of the target population totaling to 64 employees. The sampling design adopted was be stratified random sampling because population is heterogeneous. Data was analyzed by use of statistical package for social science (SPSS) regression and correlation. Data was then presented using tables and figures. The empirical results revealed a positive significant relationship between financial performance and Inventory warehousing systems at 0.05 significance level. Further, they showed that Inventory warehousing systems had a significant effect on performance with a beta coefficient of 0.311. The study suggests that owners/managers of ABC embrace effective inventory warehousing systems as a tactic to further their financial performance and in overall performance of their organization.
Highlights
Inventory management systems curb the challenge of productive inventory management to support an upward trend in sales while keeping the investment cost at the lowest level consistent with adequate customer service (Ellram, 1996)
The results indicate the effects of inventory warehousing management systems on financial performance
The findings shows that most respondents agreed that proper handling of materials was cost-effective on inventory warehousing management systems affecting financial performance of the institutions with a weighted average of 3.63
Summary
Inventory management systems curb the challenge of productive inventory management to support an upward trend in sales while keeping the investment cost at the lowest level consistent with adequate customer service (Ellram, 1996). According to Gerald (2006), inventory management systems are processes of managing inventory in order to meet customers needs by maintaining the lowest possible cost of investment. Preliminary aspect in the inventory management process is determining the cost of carrying inventory. These costs include, among others, storage cost, inventory risk, and loss of opportunity cost of capital. The effectiveness of inventory management system, is directly measurable by how successful a company is in providing high levels of customer service, low inventory investments, www.ccsenet.org/ijbm
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