The Effect of Inventory Management and Control System on Operational Performance Cement Industry

The purpose of this research study was to examine the effects of inventory management and control system on operational performance: the case of National Cement Share Company. The research objectives were to determine the effect of just in time, economic order quantity, ABC, and vendor managed inventory on operational performance of NCSC. The research study was conducted through a descriptive and inferential research design. The research design enables a researcher to gather data at a particular point on time and use it to describe the nature of the existing conditions. A sample of thirty four workers was selected to participate in the study. The data was analyzed based on descriptive statistics in which SPSS version 20 was used. The research study established that effective inventory management model, ABC, Economic Order Quantity and Vendor Managed Inventory is statistically significant with a P-value > 0.05 and it has more impact on operational performance of National Cement Share Company. The research concluded that inventory management & control system impact significantly the operational performances of National Cement Share Company and it leads to many benefits in the company, including ensuring reduction in cost of operations, decline of overall administration and inventory costs, increased operations efficiency and timely response to customers’ needs, which are all associated with operational efficiency. While there are different inventory management & control systems, the findings of this research sstudy establish that National Cement more likely to benefit from Economic Order Quantity, Vendor Managed Inventory and ABC model. The research study establishes that National Cement should embrace effective inventory management and control this is because an effective management of inventories has an overall impact on enhancing operational performance of the organization, including a reduction of cost of operation, ensure optimum production, and timely response to customer need.