Effects of inventory control on the performance of construction companies in Uganda: a case study of Kavuma investments (U) Ltd

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Kampala International University, College of Economics and Management
The purpose of the study was to establish the relationship between inventory control and its impact on the performance of construction companies in Uganda basing on the following objectives; to determine approaches to inventory control used by Kavuma Investments, to find out the Inventory costs incurred in procurement process in Kavuma Investments, and to find out the relationship between approaches of inventory control and financial performance of Kavuma Investments The descriptive aspect of the research design was used in establishing the company performance and the analytical research design was used to establish relationship between inventory control and performance. The sample size of 30 was determined by fomulae of Krejcie Morgan (1970). Data was both primary and secondary. Primary data was collected by the use of questionnaires and secondary data was got from repo11s, journals, and internet. Frequency tables, and graphs were worked out basing on the data entered into excel. In these frequency tables, and graphs analysis was done with a corresponding percentage. However statistical packages for social sciences (SPSS) were used to determine the relationship between the two variables. Findings revealed that Goods are not inspected on receipt, staff members of Kavuma lnvestments do not pay maximum attention to those inventories whose value is highest, all store staffs of Kavuma Investments are not highly skilled, it experiences under stocks situations, and gets damaged goods from its stored. Besides that Kavuma Investments is faced with costs of checking on orders and m maintaining records of the entire process, handling costs. Nevertheless, there is a strong positive relationship between approaches of Inventory Control and Financial Performance at Pearson correlation coefficient 1= 0.794. It was recommended that Kavuma Investments should forecast market for its products so that it stocks enough inventories to avoid under stocks and reduce on damaged inventory.
A Research Report Submitted To College Of Economics And Management In Partial Fulfillment Of The Requirements For The Award Of Bachelor’s Degree In Procurement And Supplies Management At Kampala International University
Inventory control, Construction companies, Uganda, Kavuma investments (U) Ltd