Challenges Facing Micro and Small Enterprises in Inventory Management in Kisii Town, Kenya

Abstract

This study focused on the challenges facing micro and small enterprises (MSEs) in inventory management in Kisii Town, Kenya. The objective of the study was to evaluate the challenges facing MSEs in inventory management in Kisii Town-Kenya. Some of the inventory management challenges include demand variability, material handling, inventory costs, inadequate information and stock setting. The accessible population was the three hundred and eight (308) registered MSEs in Kisii Town. The study used stratified random sampling to group the businesses into homogeneous entities. A random sample was then drawn from the each group. Questionnaire with both open and closed items used to obtain data. Correlation analyses were used to ascertain the relationship between inventory challenges and effective inventory management in MSEs. The study established the existence of a strong negative relationship between demand variability, inadequate information sharing and inventory costs and inventory management.