Inventory Management and Organizational Profitability at Gumutindo Coffee Cooperative Enterprise Limited, Uganda

Abstract

This study seeks to explore the effect of Inventory management on organizational profitability using Gumutindo Coffee Cooperative Enterprise Limited as a case study. The study test the hypothesis: Inventory Management has a significant positive effect on organizational profitability. The study used a descriptive research design and adopted a case study strategy. Out of a population of 345 staff, a sample size of 181 was derived. However only 168 responded out of the 200 questionnaires sent out. The study revealed that inventory management positively affected profitability of the organization with a Pearson correlation coefficient of 0.455. The adjusted R2 was 0.202 implying that 0.2% of changes in GCCE profitability are accounted for by inventory management. Thus the hypothesis was accepted. The study concluded that the inventory management as adopted by GCCE was quite effective and recommended further investment in inventory to boost inventory levels.