INVENTORY MANAGEMENT AND PERFORMANCE OF STATE AGENCIES UNDER THE MINISTRY OF AGRICULTURE AND LIVESTOCK DEVELOPMENT, KENYA
Abstract
State agencies in Kenya have been experiencing problems in their supply chain, which include overstocking, stock-outs, and inefficiencies. They experience challenges in their inventory management, which leads to inefficiencies, delays, and increased costs. The general objective of the study is to assess the relationship between inventory management and performance of state agencies under the Ministry of Agriculture and Livestock Development, Kenya. The study further sought to examine the moderating role of internal integration on the relationship between inventory management and performance of state agencies under the Ministry of Agriculture and Livestock Development, Kenya. The study was anchored on lean theory and supply chain network theory. The study adopted explanatory research design. Positivist research philosophy was adopted. The target population was therefore 192 procurement assistants, senior procurement assistants, procurement officers, senior procurement officers, deputy directors of supply chain management and directors of supply chain management in 32 state agencies under the Ministry of Agriculture and Livestock Development. The study adopted a census approach and hence the whole population was included in the study. The study used primary as well as secondary data. The questionnaires generated qualitative and quantitative data. Descriptive and inferential statistics were used in analyzing quantitative data with the assistance of statistical software known as Statistical Package for Social Sciences (SPSS) version 25 statistical software. Descriptive statistics comprised of frequency distribution, percentages, standard deviation and mean. Inferential data analysis was carried out using Pearson correlation coefficient, multivariate linear regression, and step-wise regression analysis. The study found that inventory management is positive and statistically significant in explaining performance of state agencies under the Ministry of Agriculture and Livestock Development, Kenya. The study concludes that internal integration has significant moderating effect on the relationship between inventory management and performance of state agencies under the Ministry of Agriculture and Livestock Development, Kenya. From the findings, the study recommends that the management of state agencies under the Ministry of Agriculture and Livestock Development, Kenya should adopt advanced inventory management systems to help streamline inventory tracking, reduce errors, and provide real-time data on stock levels.
Key Words: Inventory Management, Internal Integration, State Agencies Under the Ministry of Agriculture and Livestock Development
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