INFLUENCE OF INVENTORY MANAGEMENT PRACTICES ON ORGANIZATIONAL PERFORMANCE IN ENERGY SECTOR: A CASE STUDY OF KENYA POWER

Abstract

the energy sector in Kenya. The target population of this study was composed of the management staff of Kenya Power. Simple random sampling technique was applied to come up with a sample size where primary data was gathered directly from respondents and for this study the researcher used a questionnaire. The questionnaire consisted of close and open-ended questions. The researcher conducted a multiple regression analysis so as to determine the relationship between inventory management and organizational performance. The target population was 300 staff management. The researcher used stratified random sampling procedure to select a sample size of 90 respondents. Quantitative data was collected using questionnaires and analyzed by the use of descriptive statistics using SPSS. From the findings, the researcher recommended that strong policies should be implemented in in the energy sector for them to do away with the problem of organizational non-performance. To curb various challenges of inventory shrinkage in the organization, the energy sector should consider implementation of a vendor managed inventory to lower incidences of stock-out situations. The inventory investment for any organization should be spelled out as part of the organization terms. The institutions should put up to date information technology systems which are easy to follow for both the employees and the borrower, and so as to avoid carrying of excess inventory that might be a risk to the Company, accurate forecast should be in place.