Material Management and Organizational Performance of Zanzibar Sugar Factory in Zanzibar, Tanzania

Abstract

This study examined the effect of material management on institutional performance of Zanzibar sugar factory. The specific objectives of the study where; (i) To determine the effect of just in time inventory on institution performance of Zanzibar Sugar Factory in Zanzibar, Tanzania, (ii) To determine the effect of vendor managed inventory on institution performance of Zanzibar Sugar Factory, (iii) To determine the effect of material requirement planning. Problem statement was drawn on the line of sugar factory Zanzibar. The study followed a descriptive research design, whereby quantitative research approach was used to gain insight to variables. A sample of 89 respondents was used to collect necessary data for the study. The data was captured using the Statistical Package for Social Science (SPSS) software and then analyzed with respect to the research objectives using simple linear regression analysis. The study found out that; firstly just in time has no significant effect on institutional performance of Zanzibar sugar factory in Tanzania. The second objective revealed that; vendor managed inventory has positive significant effect on institutional performance of Zanzibar sugar factory in Tanzania. The third objective revealed that material requirement planning has positive significant effect on institutional performance. The study concludes that; just in time does not have significant effect on institutional performance, while vendor managed inventory and material requirement planning both have significant effect on institutional performance of Zanzibar sugar factory in Tanzania. The recommendation Just-in-time inventory management is not suitable for the sugar factory; it should not be adopted by the management of Zanzibar sugar factory because it does not have a significant effect on institutional performance. Since the sugar factory does not produce products of specialized orders, this technique of material management is not recommended by the study to be embraced by management of the sugar factory. The study further recommends that management of Zanzibar sugar should embrace vendor managed inventory and material requirement planning because these are suitable to improve on institutional performance.