Influence of Inventory Control Techniques on Service Delivery in Parastatals in Kenya: A Case Study of Kenya Medical Supplies Authority

The purpose of this project was to establish the influence of inventory control techniques on service delivery in parastatals in Kenya. Particularly Kenya Medical Supplies Authority It was purposively selected due to the fact that the company purchases high volume of expensive goods from the international market which amounts to 44.9 % but gains excessive losses due to poor inventory control leading to less than expected performance and service delivery. The broad objective of the study was to establish the influence of inventory control techniques on service delivery in parastatals in Kenya and the specific objectives of the study were To find out how economic order quantity influence service delivery in parastatals. To examine how period review systems influences service delivery in parastatals. To establish how fixed order systems on influences service delivery in parastatals. To access how material requirement planning influences service delivery in parastatals. In gathering out the data the researcher used a descriptive case study design. This entails the use of structured questionnaire, personal interviews which entailed the aspect of asking questions in a prescribed form and order. The study conducted a multiple regression analysis to determine the relationship between service delivery and the variables of the study. Multiple regression analysis was used to make a prediction of a dependent variable in relation to the independent variables. The results also indicated that there was a positive and significant correlation between inventory control techniques and service delivery in parastatals. Furthermore, the study indicated that economic order quantity influences service delivery positively. The study recommends mismanaged inventory can lead to an unnecessary increase in the working capital. Effective inventory control techniques would lead to low storage costs, reduction of wastage and obsolescence which will in turn lead to an increase in the companys profits. Hence help satisfy customers by providing them with the products they need in the swiftest manner.