MJAMR

Inventory Management Strategy and its Impact on Production Efficiency: An Empirical Evidence of Mukwano Manufacturing Industries

Dr Arinaitwe Julius


Abstract

Effective inventory control optimizes production throughput and minimizes costs. However, limited empirical research exists evaluating impact of specific inventory management strategies adopted by manufacturing firms in Uganda. This study investigated relationship between just-in-time, economic order quantity and manufacturing lead time inventory approaches and overall equipment effectiveness at Mukwano Industries using time series data from 2012 to 2021. Multiple regression analysis was conducted on SPSS and STATA while controlling for demand variability, product complexity and supply chain integration. The findings revealed that just-in-time and economic order quantity positively influenced production efficiency whereas long lead times lowered it. Adopting lean manufacturing principles tailored to the context could foster productivity. The model indicated that technical skills had a statistically significant effect on production efficiency, as evidenced by the significant coefficient (β = .373, p < .001). The R Square value of .405 suggested that approximately 40.5% of the variance in production efficiency can be explained by the predictor variables included in the model, with a slightly lower Adjusted R Square value of .398 after accounting for the number of predictors and sample size. To strategically optimize inventory management practices realizing untapped potentials for heightened productivity at Mukwano Industries, several forward-thinking recommendations should prudently be actualized.

Keywords

Inventory Management Strategy Production Efficiency Lead Time and Supplier Performance
Metropolitan Journal of Academic Multidisciplinary Research

Cite This Article

Dr Arinaitwe Julius (2024). Inventory Management Strategy and its Impact on Production Efficiency: An Empirical Evidence of Mukwano Manufacturing Industries. Metropolitan Journal of Academic Multidisciplinary Research, 3(4). https://journals.miu.ac.ug/pages/article.php?article_id=1116

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