Application of Inventory Models in Management of Raw Materials by Food Manufacturing Firms in Kenya

Abstract

Proper inventory management represents one of the ways in which firms can manage their costs, and satisfy their customers by giving them quality products at the right prices. The objectives of the study were to research on the different inventory models that are applied by food manufacturing firms in Kenya to manage their raw materials and to determine the factors that are considered important for success in inventory management. The research adopted a descriptive research design to answer the research question. The study realized that food manufacturing firms in Kenya apply a variety of inventory models to manage their raw materials. None of the firms interviewed applied a single model in isolation. Instead, firms used a combination of different models to manage different sets of raw materials. In conclusion, the food industry in Kenya is employing professionalism in their operations and most highlighted the benefits they have reaped. Efficient ordering systems and efficient material handling procedures were recorded as the most common areas in which companies had benefited. However, most companies are yet to achieve great success in meeting budgetary constraints of raw material management The researcher recommends that despite the recorded benefits, there is a lot that needs to be done to achieve total efficiency in raw material management both in education of staff and in acquisition of proper systems. The knowledge base of inventory studies needs to be expanded through research so as to equip industry practitioners with more information in this field.