Introduction

 The study will investigate the impact of inventory management on organizational performance in Mukwano Group of Companies. This chapter comprises of eight major segments that’s background to the study, statement of the problem, main objective of the study, objectives of the study, research questions, significance of the study, scope of the study, and conceptual frame work.

1.1 Background to the Study

1.1.lHistorical Perspective In the earlier years, Inventory Management was treated as a cost Centre, since PurchasingDepartment was spending money on inventory while Stores was holding huge stock of inventory, blocking money and space, Ramakrishna (2005).However, with the process of liberation and opening up of global economy, there has been a drastic change in the business environment, resulting in manufacturing organizations exposed to intense competition in the market place. Service companies’ worldwide has been working out various strategies to face the challenges and to cut down manufacturing costs to remain competitive (Blomqvist, 2006).Sommer (1981) argued that fuzzy dynamic programming was to determine optimal inventory and production levels in a real-world integrated multi-period inventory and production scheduling problem for an organization engaged in a planned withdrawal from a market.