Effects of inventory management practices on the organizational performance of the dairy processing industry in Harare, Zimbabwe
- Author
-
Mariga, Sharon Tanaka
- Title
- Effects of inventory management practices on the organizational performance of the dairy processing industry in Harare, Zimbabwe
- Abstract
- This paper investigates the effect of bullwhip effect on the performance of the firms in the dairy processing industry in Harare, Zimbabwe particularly on the inventory management system. From this study, VMI implementation, product postponement, JIT and periodic stocktaking significantly reduce Bullwhip Effect. The literature of this research was also presented using previous studies where the theoretical, conceptual and empirical contexts were made. Data gathered from Dairy Board Holdings Limited is secondary data that is collected with the purpose of computing the different inventory indices and the data is analyzed by SPSS 27. These basic measures indicate that there is moderate variation in the overall inventory management, where current inventories and inventory values present high coefficients of variation. Multivariate analysis shows the comparative impact of current inventory level of JIT order quantities, lead times, and postponements. It has a very slight influence on the actual stock quantity during stock consumption or periodical stock taking. Implications from the analysis show that VMI is supportive in minimizing the bullwhip effect on the raw materials and similarly, product postponement is useful in the minimization of the bullwhip effect on the finished products. JIT practices are most suitable in the current conditions of inventory efficiency. These results highlight the significance of real-time and reliable inventory information in optimizing the supply chain and eliminating unnecessary losses. From this study, it can be concluded that the overall management of inventory is highly important when it comes to the elimination and reduction of bullwhip effect for the overall better performance of the organizations dining processing industry. Suggestions made are attaining high levels of demand forecasting tools, improving cooperation with the suppliers, adopting JIT inventory and VMI, providing encouragement for supply development, and maintaining the progressive and versatile supply chain models. It is recommended to conduct the studies to verify realistic solutions of these problems over long term and to analyze qualitative factors, which affect inventory control and the bullwhip effect. This research also emphasizes the need to balance on several inventory management practices in a bid to reduce the bullwhip effect and ultimately enhance the organizational performance in the dairy processing sector in Harare, Zimbabwe.
- Date
- 2024
- Publisher
- BUSE
- Keywords
- Inventory management system
- Dairy processing industry
- Organizational performance
- Supervisor
- Dr Mukucha
- Media
-
SHARON TANAKA MARIGA.pdf