CHALLENGES FACED IN THE APPLICATION OF VARIOUS INVENTORY CONTROL TECHNIQUES AMONG SUPERMARKETS IN NAIROBI, KENYA

Abstract

Supermarket hold large volume of inventory and thus a need exists to hold inventory control systems. This
enables holding of an optimum levels of inventory in these supermarkets. The common inventory control
techniques include: Minimum stock level, stock review inventory technique, and just in time (JIT) technique
amongst others. The study found challenges with the EPOS and FIFO inventory systems. The main concern for EPOS system was that it was expensive to install and maintain the system. The study adopted a survey research design with a target population drawn from all supermarkets based in Nairobi. It utilized a sample size of 50 supermarkets. Data was analyzed using statistical package for social sciences(SPSS).Correlation analysis was used to establish the level of correlation between the techniques investigated ,while factors analysis was used to  ascertain the inventory control techniques that were most widely applied by Supermarkets in Nairobi. The respondent also noted that FIFO was not applicable to all types of inventory and was inaccurate in predictingreorder levels. The main challenges observed in the application of EOQ were that it was not easy learn and was also expensive to install and maintain.