The Effect of Inventory Management


This research intended to establish the effect of inventory control system and inventory layout on organizational performance as well as the relationship between codification and organizational performance. At Century Bottling Company Limited. The study used descriptive research design to collect data, which was analysed using Statistical Package for Social Scientists. The Pearson correlation coefficient method was used to test the relationship between the independent variable and dependent variables.

The inferential statistics revealed that there is a weak positive correlation at 0.069 significant at 0.347>0.05 between inventory management and organisational performance at Century Bottling Company Limited.Therefore, the study concludes that inventory control improves the organizational performance of Century Bottling Company. Furthermore, correlation results revealed that there is a weak positive correlation at 0.059, highly significant at 0.421>0.05 between inventory layout and organisational performance.Therefore, the study concludes that inventory layout improves the organizational performance of Century Bottling Company.

The study also found out that there was a weak positive correlation at 0.045, highly significant at 0.542>0.05 between codification and organisational performance. Therefore, the study concludes that codification improves on the organizational performance of Century Bottling Company. Thus, the study recommends that Century Bottling Company should consider establishing inventory optimization as part of the entire inventory control system to evaluate its 6 entire network and determine the best inventory policies for each product at each node in its supply chain. If optimization takes into account demand variability, supply variability, and replenishment parameters to determine how much inventory to hold in order to guard against that variability, then, Century Bottling Company should strive to operate at full capacity by ensuring that every square foot of space is properly utilized, within the warehouse and production facilities. This will enable it keep overhead costs to a minimum and increase productivity.
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