The effect of inventory management on customer satisfaction in sugar manufacturing companies in Uganda(case study:Bwendero sugar factory)

Abstract

The purpose of the study was to establish or investigate the effect of inventory management on customer satisfaction in sugar manufacturing firms (Bwendero sugar works limited) basing on the following objectives. To examine the effect of ABC analysis on customer satisfaction in sugar manufacturing firms, to examine the effect of Just in Time (JIT) on customer satisfaction in sugar manufacturing firms, to examine the effect of economic order quantity (EOQ) on customer satisfaction in sugar manufacturing firms. The improper management of inventory in most sugar manufacturing firms has led to the rise of speculators/middlemen who purchase goods and, in the process, inflate the prices due to over purchase of good from the factories causing inefficiency and hence customer dissatisfaction The researcher used descriptive and quantitative research designs. Correlation co-efficient was used to determine the relationship between inventory management and customer satisfaction. The sample size of 30 respondents was selected using stratified random sampling. Self-administered questionnaires were used to collect data. Primary data was collected through use of questionnaires and secondary data was collected from magazines, journals and articles. Data was collected, edited and analyzed. According to the findings, the organization uses EOQ technique other than any other system at over 65%. The study showed positive relationship between inventory management and customer satisfaction at Pearson correlation coefficient r=0.876. It was also concluded that inventory management techniques were effectively considered in Bwendero sugar works limited, it was recommended that management Bwendero sugar works limited should provide fringe benefits to workers in order to improve on their behaviors. Also, it was recommended that management of Bwendero sugar works limited ensure that inventory management techniques are practiced by people with trained qualifications skills.