JUST IN TIME INVENTORY MANAGEMENT TECHNIQUE AND SUPPLY CHAIN PERFORMANCE IN PROCESSING FIRMS IN KENYA: A CASE OF CROWN PAINTS LIMITED

2021 ◽  
pp. 80-97
Author(s):  
Penina Kibisu ◽  
Paul Machoka
Keyword(s):  
Supply Chain ◽  
Inventory Management ◽  
Significant Relationship ◽  
Quantitative Data ◽  
Just In Time ◽  
Management Technique ◽  
Supply Chain Performance ◽  
Pull System ◽  
Customer Order ◽  
Takt Time

ABSTRACT The main objective of the study was to investigate the effect of just in time inventory management technique on supply chain performance in processing firms in Kenya with focus to Crown Paints Limited. This study analyzed several theories majoring on the deterministic inventory which deterministic models of stock control are utilized to decide the ideal stock levels in the company. This study adopted descriptive research design. Target population of this study was 279 staff working in various department at Crown Paints Limited. Stratified random sampling technique was used in this study to come up with a sample size of 81 respondents. Questionnaires were used to collect primary data. Qualitative and quantitative data was collected where quantitative data was coded in the SPSS (Version 22). Data has been presented using frequency tables and figures while interpretation has been done in prose form. Inferential statistics was used to establish relationship between just in time inventory management technique on supply chain performance. The study concluded that customer order cycle influence supply chain performance. There was significant relationship between customer order cycle and supply chain performance. The study concludes that supply chain cycle contributes to supply chain performance, and that there was significant relationship between supply chain cycle and supply chain performance. The study concludes that there was linear relationship between Takt Time and supply chain performance. There was significant influence of Takt Time on supply chain performance. The study concludes that pull system contributes to the supply chain performance. The study concludes that the overall significant relationship between pull system and supply chain performance. The study recommends that organizations should have multiple objectives like enhanced competitiveness, better customer service and increased profitability among other. To seek these objectives organizations should employ various defensive as well as offensive business performance improvement approaches. In order to receive an accurate result using takt time formula on supply chain performance, organizations should put both the production time available and the customer demand into frames. Goods should simply be produced according to the pace of consumption in the market a market demand-pull supply chain system.

JIT Inventory Management Strategy

2019 ◽  
pp. 57-74 ◽  
Author(s):  
Alan D. Smith
Keyword(s):  
Supply Chain ◽  
Inventory Management ◽  
Management Strategy ◽  
Economic Order Quantity ◽  
Just In Time ◽  
Order Quantity ◽  
Business World ◽  
Safety Stock ◽  
Operating Process ◽  
Strategic Approach

Implementing a just-in-time (JIT) inventory management strategy seems to be the latest hot topic in the business world, particularly in manufacturing industries. In today's competitive supply chain environment, more and more companies are either adopting JIT methodology or at least beginning to research and understand how JIT would affect their business. But what exactly is JIT? Many companies may be already putting into practice some of the concepts of JIT – such as looking at always improving or trying to reduce waste in terms of product or labor steps. Some companies may be fully ready to embrace a JIT operating process; yet, perhaps JIT is not the best choice for their business. The goal of this chapter is to develop a better understanding of JIT, from this history behind its inception to the various risks and benefits that relate to adopting JIT from an interdisciplinary/strategic approach to a transdisciplinary viewpoint. Those strategies, which include the basic methods of minimum stock, economic order quantity (EOQ), and Safety stock methods, are explored and explained in this chapter.

scholarly journals Inventory Management Practices and Supply Chain Performance of Antiretroviral Medicines in Public Hospitals in Nyamira County, Kenya

2021 ◽  
Vol 4 (2) ◽  
pp. 257-268
Author(s):  
Anyona Johnson ◽  
Karimi Peter ◽  
Maru Shital
Keyword(s):  
Supply Chain ◽  
Inventory Management ◽  
Lead Time ◽  
Management Practices ◽  
Performance Metrics ◽  
Public Hospitals ◽  
Supply Chain Performance ◽  
Key Informant ◽  
Wastage Rate ◽  
Reporting Rates

BackgroundUnreliable supply systems have plagued the provision of an uninterrupted supply of life- saving medicines in many developing countries, with antiretroviral (ARV) medicines having the worst repercussions.ObjectiveTo identify the inventory management practices used, evaluate the supply chain performance, and determine the challenges affecting inventory management of ARV medicines in public hospitals.MethodsThe study used a descriptive cross-sectional design, gathering snapshot data on inventory management practices happening in all the 8 public hospitals across Nyamira County. Data collection was done using structured questionnaires, key informant interviews, checklists and data from the national health information system.ResultsThe response rate was 97.3% for the questionnaires and 100% for the key informant interviews. The prevailing inventory management practices were: use of scheduled inventory control model (80.95%), forecasting demand using previous consumption data (100%), keeping accurate and updated stock records for each commodity (92.31%), having essential logistical data in reports (100%), including safety stock (61.54%) when ordering and keeping ARV medicines in dedicated stores (75%). With the exception of order lead time (17.98 days), the other supply chain performance metrics namely stock out rate (52.12%), stock wastage rate (43.2%), and reporting rates (70.84%) were found to be deficient. The challenges mostly affecting inventory management included inadequate staff and training, lack of proper storage, and unreliable supply of medicines.ConclusionInventory management practices were according to the recommended best approaches despite various challenges. The supply chain performance metrics evaluated, with the exception of order lead time, were all found to be unsatisfactory owing to the high stock out rates, below par reporting rates and high stock wastage rate due to expiries discovered. Adoption of an electronic inventory system, use of data for decision making, dedicated storage of ARV medicines, and inclusion of buffer stock, are some strategies to improve inventory management.Rwanda J Med Health Sci 2021;4(2): 257-268

The Critical Success Factors in Supply Chain Implementation

2006 ◽  
pp. 272-290
Author(s):  
Panyaluck Udomleartprasert ◽  
Chamnong Jungthirapanich
Keyword(s):  
Supply Chain ◽  
Supply Chain Management ◽  
Data Collection ◽  
Significant Relationship ◽  
Critical Success Factors ◽  
Success Factors ◽  
Supply Chain Performance ◽  
Chain Management ◽  
Critical Success ◽  
Relationship Of

This chapter introduces critical success in supply chain implementation by empirical research. The widespread implementation of supply chain management induced companies to move beyond national borders and be enticed by the global competition in business. Applying supply chain management overall in organizations, companies generally considered it successful in managing their supply chains. However, some of them have not reached the magnitude of improvements or the desired results ascribed to supply chain management. With supply chain concerns and problems related to some basic companies’ infrastructures, the supply chain knowledge and operational skill affected the effectiveness of supply chain practices and performances. In this research, we studied the infrastructures enhancing the success of supply chain implementation that influence supply chain performance. The author adopts three categories of infrastructure as the critical success factors of supply chain implementation: man, machines, and management. The EQS is used to analyze the data collection. A total of 114 pieces of data were completed, and the result shows the significant relationship of operational infrastructures and the success of supply chain management.

Supply Chain in Cross-Border E-Commerce

2021 ◽  
pp. 54-77
Author(s):  
Md. Nuruzzaman ◽  
Alicia Neva Weber
Keyword(s):  
Supply Chain ◽  
Inventory Management ◽  
Supply Chain Performance ◽  
Internet Infrastructure ◽  
Cross Border ◽  
Blockchain Technology ◽  
Fast Development ◽  
Key Issues ◽  
International Aspects ◽  
Significant Attention

Cross-border e-commerce has emerged with significant attention in the field of international trade. Exports and imports are more integrated with the revolutionary e-commerce platforms where people can buy things from other countries at their fingertips. However, the supply chain behind the business transactions beyond the country's boundaries is more complicated than traditional businesses. The successful supply chain performance of e-commerce depends on many local and international aspects. Issues and challenges of the supply chain rapidly change due to the fast development of internet infrastructure. The chapter identifies some key issues like supply chain facility, inventory management, legal obstacles with today's supply chain performance of international e-commerce. Comprehensive solutions and recommendations are given here with focusing the integration of blockchain technology, which tells how the businesses can initiate the combination of both e-commerce and cryptography for effective intercountry supply chain performance.

scholarly journals INVENTORY MANAGEMENT SYSTEMS ON SUPPLY CHAIN PERFORMANCE OF FAST-MOVING CONSUMER GOODS MANUFACTURERS IN KENYA

2021 ◽  
Vol 5 (1) ◽  
pp. 1
Author(s):  
Eric Jepherson Muhalia ◽  
Dr. Patrick Karanja Ngugi ◽  
Dr. Makori Moronge
Keyword(s):  
Supply Chain ◽  
Inventory Management ◽  
Consumer Goods ◽  
Fast Moving ◽  
New Technology ◽  
Management Systems ◽  
Primary Data ◽  
Supply Chain Performance ◽  
Sampling Frame ◽  
Fast Moving Consumer Goods

Purpose: The purpose of this study was to determine the influence of inventory management systems on supply chain performance of fast-moving consumer goods manufacturers in KenyaMethodology: The study adopted descriptive research design. The unit of observation was the operations manager of the 51 FMCG manufacturers located in Nairobi. The sampling frame of the current study consisted of operations managers in the manufacturers of the FMCGs in Nairobi. The study used the census method to select 51 manufacturers of the FMCGs in Nairobi, thus the sample of the study was 51 respondents. Primary data was used in the study. The study used questionnaires to collect data. Mixed methods technique of analyzing data was used where both descriptive and inferential analysis were used. The data collected from the field was analyzed using SPSS 23 program. The questionnaires were referenced and the items in them coded for easier data entry. The presentation of the findings was done using tables.Results: The study found that inventory management systems positively and significantly influences Supply chain performance of FMCG in Kenya. The study found that respondents agreed that inventory management systems promotes improved supplier, vendor, and partner relationships; inventory management systems enables the company to maintain a centralized record of every asset; inventory management systems helps in reduction in storage costs; inventory management systems helps to keep track on current stock levels which enables the company to reorder with greater accuracy; and that inventory management systems promotes better reporting and forecasting capabilities.Unique contribution to theory, practice and policy: The study recommended that the recommends the company to adopt new technology (updated inventory management system) to ensure that the processes in the company are efficient; this can be achieved by upgrading operation standards and implementation of new technology and software. Because of technological itches, it is possible for the company to lose data, therefore it is recommended that the company should always have backup of inventory data.

scholarly journals DEVELOPMENT OF OPTIMAL INVENTORY MANAGEMENT MODELS WITH HYBRID PUSH/ PULL SYSTEM AS INCREASED PERFORMANCE OF FISHERY ENTITIES IN NORTH SULAWESI

2018 ◽  
Vol 1 (3) ◽  
pp. 190
Author(s):  
Anita Ludia Vivian Wauran ◽  
Joseph Nugraha Tangon ◽  
Alpindos Toweula
Keyword(s):  
Inventory Management ◽  
Quantitative Data ◽  
Qualitative Data ◽  
Resource Constraints ◽  
Primary Sources ◽  
Optimal Management ◽  
Key Factors ◽  
Pull System ◽  
Secondary Sources ◽  
North Sulawesi

Proper production and inventory policies are key factors for the success of modern companies in a competitive environment. In order to be a winner and a very high demand, it is very important for the company to overcome the problems of production, timely delivery, and the transfer of which is a limitation or difficult company. There is a need for an optimal management that can manage the resource constraints of a companythrough the theory constrains of a hybrid policy that collaborates between push strategies, which is to make an order by pull strategy, which is to make it stored (David Claudio, Jie Zhang, and Ying Zhang, 2007). The purpose of this research is to produce an optimal management model with hybrid push/pull system as a manifestion of fishery performance in North Sulawesi.The types of data used in this study are qualitative data and quantitative data, qualitative data directly from primary sources of fisheries entities in North Sulawesi through interviews. While quantitative data is obtained from secondary sources is data of corporate financial statements including production reports of Fisheries Entities in North Sulawesi through documents with all the contents of all fisheries entities.

scholarly journals LEAN MANUFACTURING PRACTICES AND SUPPLY CHAIN PERFORMANCE OF SUGAR MANUFACTURING FIRMS IN WESTERN KENYA

2021 ◽  
Vol 6 (1) ◽  
pp. 27-43
Author(s):  
Bob Ochieng
Keyword(s):  
Quality Control ◽  
Supply Chain ◽  
Lean Manufacturing ◽  
Manufacturing Firms ◽  
Just In Time ◽  
Supply Chain Performance ◽  
Total Quality ◽  
Western Kenya ◽  
On Demand ◽  
Defect Prevention

Introduction: Western Kenya is the largest producer of sugar in Kenya, supporting about 170,000 smallholder farming households and contributing about 80 percent of the total sugar produced in Kenya. This contribution is however threatened given that the sugar firms in that region are producing sub optimally with obsolete technology. Comparing to related sector, other firms in Kenya such as the tea manufacturing firms have implemented energy efficiency practices so as to manage energy wastage and reduce production costs. Were they to employ effective production methods, they could increase their production significantly. While that is the case, scholars have suggested that adoption of lean manufacturing practices is a panacea to quality addition and waste minimization. Perhaps what these firms need are lean practices. Purpose: This study interrogated the extent to which the firms have adopted lean manufacturing practices, just-in-time and total quality control and if they have, its effect on supply chain performance. Methodology: The study targeted and conducted a census on the 11 sugar manufacturing firms in the Western Kenya belt where the procurement managers, line managers, finance managers, production managers, production engineers, quality assurance officers and operations managers of each of the 11 firms (total 87) were targeted. The study employed a descriptive research design to collect quantitative data. Quantitative primary data was collected through questionnaires and analyzed using statistical package for social sciences.  Findings: The findings of the study indicated that the just in time productionand total quality control are positively and significantly associated with supply chain performance of the sugar manufacturing firms. Unique Contribution to Practice and Policy: The study recommended adoption of just in time production practices such as availing labor on demand in order to manage labor costs, availing resources on demand in order to manage wastage, production on demand in order to manage inventory costs, ordering raw materials from the suppliers only when there is demand for production from customers, having a simplified production design to ensure timely production and having multiple skilled workers to ensure faster production. In addition, in order for the sugar manufacturing firms to increase supply chain performance, there is need to adopt total quality control practices such as having manageable defect prevention costs related to quality planning, putting in place manageable defect prevention costs related to investment in quality related information systems, having manageable appraisal costs related to test and inspection of purchased materials, having manageable appraisal costs related to quality audits, having controllable internal failure costs related to reworks and having manageable internal failure costs related to scrap.

A Colored Petri Net-based modeling method for supply chain inventory management

SIMULATION ◽  
2021 ◽  
pp. 003754972110387
Author(s):  
Maria Drakaki ◽  
Panagiotis Tzionas
Keyword(s):  
Supply Chain ◽  
Inventory Management ◽  
Petri Net ◽  
Simulation Modeling ◽  
Modeling Method ◽  
Operating Conditions ◽  
Supply Chain Performance ◽  
Colored Petri Net ◽  
Wide Range ◽  
The Impact

Supply chain planning and control approaches need to include a wide range of factors in order to optimize production. Supply chain simulation modeling has been identified as a potential methodology toward increasing the efficiency of current systems to this end. The purpose of this paper is to evaluate the impact of inventory management decisions on supply chain performance using a Colored Petri Net based simulation modeling method. The presented method uses hierarchical timed Colored Petri Nets to model inventory management in a multi-stage serial supply chain, under normal operating conditions, and under the presence of disruptions, for both traditional and information sharing configurations. Disruptions are introduced as canceled orders and canceled deliveries, in a time period. Supply chain performance has been evaluated, in the context of order variance amplification and stockout amplification. Validation of the method is done by comparing results obtained for the bullwhip effect with published literature results, as well as by state space analysis results.

A Study on CPFR Inventory Management Technology

2014 ◽  
Vol 599-601 ◽  
pp. 2079-2082
Author(s):  
Pei Zhang ◽  
A Qian Yuan
Keyword(s):  
Supply Chain ◽  
Inventory Management ◽  
Management Technique ◽  
Forecasting Accuracy ◽  
Supply Chain Efficiency ◽  
Management Technology ◽  
Cooperative Relationship

CPFR is a collaborative supply chain inventory management technique, it is very important for supply chain partners to improve cooperative relationship, reduce inventory, improve the forecasting accuracy and supply chain efficiency. This paper identifies what CPFR is, explains the CPFR process, cites benefits that have been achieved, identifies obstacles to implementation, and discusses the necessary measures for CPFR to running succesfully.

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