The Effect of Inventory Management on the Performance of Small and Medium Enterprises in Central Mukono on Supermarkets.

Abstract

The general purpose of the study was to evaluate the effect of inventory managemnet on the performance of small and medium enterprises in Central Mukono and the specific objectives were; to establish the inventory management practices used in the businesses in central Mukono, to examine the effects of inventory planning and control on the performance of businesses in central Mukono and to examine how inventory costs affect the performance of businesses in central Mukono. The researcher used purposive sampling to get a representative sample size to obtaine responses on the case study. The study revealed that the major contributions of inventory management practices on the performance of small and medium enterprises in central Mukono are that inventory management practices ensure that there is adequate categorizing of inventory and they provide measures for preventing inventory shrinkage. On inventory planning and control ,inventory planning and control is essential for the businesses through use of demand forecasting during planning which has improved efficiency in the businesses and through conducting regular stock counts which have helped in planning and improving on the efficiency in the businesses. The researcher made the following recommendations, proper management of records should be done to enable the businesses forecast the current and future demand and supply needs of clients. Training of personnel involving with management of inventory should be done frequently to enable them acquire skills and knowledge regarding inventory management. Supermarkets should purchase inventory with long expiry dates to minimize on the expiry problems and buying inventory from recommended suppliers should also be adopted.