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

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