Abstract: Building internal capacity, conducting energy audits, training energy management teams, facilitation of new technology in tea factories has been some of the several interventions made to decrease the cost of production and ensure more money in the pockets of tea growers. However, a decline in tea prices, bonuses and increase in cost of production proven to be a challenge. Therefore, this study investigated the effect of inventory cost management on the financial performance of Kapkoros Tea Factory in Bomet County, Kenya. The study adopted descriptive research design. The target population was Kapkoros Tea Factory in Bomet County, Kenya. The total number of respondents was 350 respondents who were employees in the marketing, production, personnel and finance departments of the factory. Respondents in this study were divided into groups according to their industry. Respondents were selected using stratified method and simple random method respectively. The sample size was 187 respondents. The data collection tool for this study was semi-structured questionnaire. A pilot study was conducted in 18 respondents. Assessment of validity of research tools was done using content validity. Cronbach's alpha test was used to measure reliability. Data analysis using descriptive and inferential analysis methods was done. The study found that inventory cost management, had a significant positive impact on the financial performance of Kapkoros tea factory. Regarding inventory cost management, the study concluded that inventory cost management increases accuracy by ensuring that factories have optimal inventory to fulfill orders. The study recommends that factories should always ensure that they can easily track the status of raw materials and finished goods in the supply chain.
Keywords: Inventory Cost Management, Financial performance.
Title: EFFECT OF INVENTORY COST MANAGEMENT ON THE FINANCIAL PERFORMANCE OF KAPKOROS TEA FACTORY IN BOMET COUNTY, KENYA
Author: Chelangat Annah, Dr. Salome Musau
International Journal of Social Science and Humanities Research
ISSN 2348-3156 (Print), ISSN 2348-3164 (online)
Vol. 11, Issue 3, July 2023 - September 2023
Page No: 215-221
Research Publish Journals
Website: www.researchpublish.com
Published Date: 16-September-2023
