Inventory Management Practices and Performance of Food and Beverage Manufacturing Firms in Kisumu City County, Kenya

Abstract

Purpose: The primary objective of the study was to examine the effect of inventory materials management on the performance of food and beverage manufacturing firms in Kisumu City County, Kenya. Specifically, the study focused on the roles of economic order quantity and just-in-time inventory practices.

Material/methods: The study targeted 115 respondents from the production, finance, and procurement departments of selected manufacturing firms. Data were collected using both open- and closed-ended questionnaires. A pilot test involving 10% of the sample was conducted to assess the reliability and validity of the instrument, with expert validation provided by the research supervisor. Reliability was tested using the test–retest method. Purposive random sampling was employed to include all relevant elements in the study. Data were cleaned and edited for clarity and relevance, and analyzed using the Statistical Package for Social Sciences (SPSS) Version 28. Results were presented in frequency tables and percentages.

Findings: The findings revealed a strong positive relationship between inventory materials management practices—specifically economic order quantity and just-in-time inventory—and the performance of food and beverage manufacturing firms.

Conclusion: The study concluded that effective inventory materials management significantly enhances organizational performance in the manufacturing sector. The application of appropriate inventory control techniques contributes to improved operational efficiency and overall firm performance.

Value: This study adds to the empirical literature on supply chain and operations management within Kenya’s manufacturing sector. It provides practical recommendations for manufacturing firms seeking to improve performance through strategic inventory management practices.