MJAMR

Investigating the Relationship Between Inventory Control and Organisational Profitability: A Case Study of Uganda Railways Corporation.

Nalulyo Shadiah, Otim John Wasiam, Dr Ariyo Gracious Kazaara


Abstract

The study aimed at investigating the relationship between inventory control and organisational profitability and it was guided by the following objectives; To investigate the relationship between inventory turnover and current ratio of Uganda Railways Corporation, to examine the effect of holding costs to the growth and expansion of Uganda Railways Corporation and to examine the effect of transport costs to the net margin (worth) of Uganda Railways Corporation. This study was adopting a cross-sectional survey design, together with a case study design, where quantitative paradigm was be considered. Cross-sectional design was be used because it allows collecting data at one point in time hence minimizing costs and time, putting into consideration the limited time and resources available. The findings of the study illustrated the relationship between holding costs (an independent variable) and organisational profitability (a dependent variable). By employing bivariate means, it revealed that there was a connection between the holding costs and organisational profitability of (r)= 0.676. The fact that the p-value is 0.000, which was less than 0.05 (p 0.05), and the p-value was significant enough to led to the conclusion that the two parameters may be slightly positively correlated. The relationship between an enhancement in the holding costs and a corresponding change in organisational profitability appeared to be reciprocal, as indicated by the beneficial r value. It was concluded that there was a strong positive correlation coefficient between inventory control and organisational profitability. This was statistically significant since the p-value 0.00 was less than 0.05 and therefore the null hypothesis was rejected and decision made that was a strong relationship research.miu.ac.ug/publications 834 METROPOLITAN JOURNAL OF BUSINESS & ECONOMICS (MJBE) ISSN 1813-4238 Vol. 2 Issue 5, August - 2023, Pages: 834-844 between the two variables. The government should construct more inventories in order to increase organizational profitability.

Keywords

inventory control organisational profitability inventory turnover
Metropolitan Journal of Academic Multidisciplinary Research

Cite This Article

Nalulyo Shadiah, Otim John Wasiam & Dr Ariyo Gracious Kazaara (2023). Investigating the Relationship Between Inventory Control and Organisational Profitability: A Case Study of Uganda Railways Corporation. Metropolitan Journal of Academic Multidisciplinary Research, 2(8). https://journals.miu.ac.ug/pages/article.php?article_id=1327

More in This Issue

View full issue →
36
The Effect of E-Procurement and Accountability in Uganda. A Case Study of the Parliament of the Republic of Uganda.
Birungi Scovia, Otim John William, Irumba Alex
E-procurement and accountability
37
The Effect of Risk Management on Financial Performance of Insurance Companies in Uganda. A Case Study of Aar Health Insurance Services Ltd
Ayebazibwe Babrah, Alex Irumba
risk management financial performance and insurance companies
38
The Impact of Destination Image of Tourism Retention in Uganda: Case Study of Bwindi National Park in Kanungu District
Kyomuhendo Doreen, Dr. Peter Magala, Ojok Alex
destination image sustainable growth Covid-19 and tourism retention
39
The Impact of Employ Motivation on Media Performance. A Case Study of UBC Radio
Asega Juma, Asiimwe Isaac Kazaara, Okee Jill Margaret, Ojok Alex
employ motivation managers and operational staff and media
40
The Impact of Monitoring and Evaluation on the Implementation of Youths Livelihood Programs in Uganda. A Case Study of Makindye Division
Magala Fred, Akampurira Sarah, Ojok Alex
monitoring evaluation implementation and youth’s livelihood programs