The effect of inventory management practices on supply chain performance of Mt.

Elgon Millers Limited.

Problem statement

Inventory management has emerged as a critical strategy for such firms to offer quality
products that meet or exceed customer needs, increase responsiveness and meet demand
expectations and uncertainties (Mangan, Lalwani & Lalwani, 2016).Despite the inventory
practices put in place at Mt. Elgon Millers such just in time as well as stock control, there is
seemingly poor performancein the supply chain characterized byinadequate storage space,
late shipment of raw materials by suppliers, late delivery of finished goods to the consumer,
wrong information distribution during production. (Mt. Elgon Millers End of Year Report,
2020). This has resulted to longer lead time and high cost of operations for the company. It
is upon such a state of affair that the researcher is triggered to take an insight in to the effect
of inventory management practices on supply chain performance of Mt. Elgon Millers
Limited, Mbale city.

Specific Objectives

1. To determine the effect of just-in-time inventory system on firm performance of Mt.

Elgon Millers Limited
2. To assess the effect of material requirement planning inventory system on supply
chain performance of Mt. Elgon Millers Limited.
3. To examine the effect of stock valuation on supply chain performance of Mt. Elgon
Millers Limited.
Conceptual Framework

Independent variable Dependent variable

Inventory
1. Management Practices Supply Chain Performance
Just-in-time
2. inventory Order accuracy
Material
3. requirement planning
Inventory turnover
Stock4.valuation
5. Inventory velocity

Moderating Variables
 Inflation
 Organizational culture
 Government policies

Source: Researcher, 2022