Effect of Inventory Management on Organizational Productivity of Manufacturing Companies in Rwanda; A Case of Urwibutso Enterprise
DOI:
https://doi.org/10.53819/81018102t2232Abstract
The general objective of this study was to assess the effect of inventory management on organizational productivity of Urwibutso Enterprise. Specifically the study assessed the effect of raw material inventory management on productivity of Urwibutso Enterprise, examine the effect of work in progress inventory management on productivity of Urwibutso Enterprise and assess effect of finished goods inventory management on productivity of Urwibutso Enterprise. This study based on Theory of Constraints (TOC), Resource-Based View (RBV) Theory, Just-In-Time (JIT) Theory and inventory Control Theory. The study was descriptive designed, correlative designed, qualitative designed, quantitative designed, and primary and secondary data-based designed. Target population was 136 populations who have direct works related to inventory management of Urwibutso Enterprise. The sample size determined by the help of Solvin formula. Researcher used cluster sampling to select 101 respondents into groups based on each employee department. To collect main data, Researcher used a questionnaire and predetermined interview questions, and to compile secondary data, Researcher did a paper search means documentary technique. The researcher used SPSS (Statistical Package for Social Scientists, version 20) findings to make sense of things like frequency, percentage, mean, and standard deviation. Bivariate Correlation analysis used for testing the validity of hypotheses. The value of R was 0.930, indicating a strong linear relationship. The R Square was 0.864, indicates that approximately 86.4% of the variability in the outcome variable (Productivity of Urwibutso Enterprise) can be explained by the predictors (Finished goods inventory management, Work in progress inventory management, and Raw material inventory management) in the model, and the adjusted R Square of 0.859 reinforces the goodness of fit. It was shown that Raw material inventory management (p=0.000 less than 0.05), Work in progress inventory management (p=0.00 less than 0.05), and Finished goods inventory management (p=0.000 less than 0.05) are statistically significant in Productivity of Urwibutso Enterprise. Urwibutso Enterprise's inventory management should include optimizing procurement processes, implementing Just-in-Time inventory for raw materials, streamlining production processes for work in progress inventory, adopting real-time monitoring, implementing demand forecasting and inventory segmentation for finished goods. These steps aim to enhance efficiency, reduce carrying costs, and maintain optimal inventory levels.
Keywords: Inventory Management, Raw Material Inventory Management, Work in Progress Inventory Management, Finished Goods Inventory Management, Organizational Productivity
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