Inventory management practices and production performance in beverage companies in Uganda, a case study of century bottling company, Namanve,

Abstract

This study examined the relationship between inventory management practices and production performance at Century Bottling Company. Focusing on three objectives, (1) periodic review practices; (2) reorder-point (ROP) and safety-stock practices; and (3) inventory technology adoption, the study used a mixed-methods cross-sectional design. Data were collected via 56 structured questionnaires, semi-structured interviews with key informants, and document review of inventory records, SOPs and related management reports. Descriptive analyses reported in the dissertation indicated moderate levels of implementation across the three inventory practice domains and a moderate-to-high composite score for production performance (the uploaded draft did not include construct means and standard deviations in a single, consolidated table). Inferential statistics show a positive, statistically significant relationship between the bundle of inventory management practices and production performance. A multiple regression with production performance as the dependent variable and periodic review, ROP & safety-stock, and technology as predictors explained about 33.1% of the variance (R² = .331; Adjusted R² ≈ .293). The overall model was significant, F (3,52) = 8.596, p < .001. Individually, periodic review was the strongest and highly significant predictor (B = 0.620, p < .001); ROP & safety-stock was also a significant positive predictor (B = 0.432, p = .0048); technology showed a positive but marginal effect (B = 0.220, p ≈ .081). Qualitative and document-review findings qualify these quantitative results: formal inventory policies and templates exist but are applied inconsistently; ROP and safety-stock calculations and enforcement are irregular; technology systems (inventory management modules/portals) are underused and training is uneven; and KPI tracking and periodic audits are weak. These implementation gaps constrain the full production performance gains potentially available from sound inventory governance. The study recommends that Century Bottling Company adopt and enforce a documented periodic-review schedule and scorecard with cross-functional sign-off; standardise ROP and safety-stock calculation procedures and embed measurable KPIs and review points into SOPs; expand and integrate inventory technology (centralised IMS/portal) while investing in targeted user training; and institute routine KPI monitoring and periodic audits to ensure compliance and continuous improvement. Implementing these measures should improve production outcomes, reduce stockouts and excess holding, and strengthen throughput and operational reliability at Century Bottling Company.