INFLUENCE OF INVENTORY MANAGEMENT SYSTEMS ON PERFORMANCE OF SOFT DRINKS MANUFACTURING FIRMS IN KENYA

Abstract

This study examined the influence of inventory management systems being the independent variable on the performance of soft drinks manufacturing firms being the dependent variable. The specific objectives of the study assessed the influence of Material Requirement Planning in firm"s performance, determine the influence of Just in Time on firm"s performance, and examine the influence of Vendor Managed inventory on firm"s performance and to explore the influence of bar coding on firm"s performance. The research used descriptive research design. The target population for the study will be 455 employees in the soft drink manufacturing firms in Kenya. The study population will be soft drinks manufacturing firms registered by Kenya National Bureau of Statistics (KNBS) 2016 and respondents designated heads of supply chain of these firms. A sample population of 213 is selected by using Slovin"s fomula. Questionnaires were administered through both e-mails and hand delivery. Secondary data were obtained from both published and unpublished records. Questionnaires were tested for both reliability and validity. Qualitative and quantitative techniques were used to analyze data with the assistance of SPSS software program version 22.A good response rate of 63% was realized. It was established that most of the inventory management systems indicators have positive impact on performance of the firm. The study further adopted a regression analysis to determine the relationship between the variables at 5% confidence level of significance. The study findings showed that the four variables had a significant influence on performance of the firms.