Buffer Stock Practice and Supply Chain Leverage of Sugar Manufacturing Firms in Kenya.

Abstract

This research paper aimed at establishing the relationship between Buffer stocks Practices and supply chain leverage of sugar manufacturing firms in Kenya. The specific objective of the study was; to determine the effect of buffer stocks practices on supply chain leverage of sugar manufacturing firms in Kenya. The research study was anchored on supply chain road map theory. The research study methodology followed a descriptive approach where; the target population of the study was 241 respondents. A census survey was conducted on all the 15 registered sugar manufacturing firms in Kenya. From the study, 20 respondents were selected for the pilot study, constituting 8%, which is within the recommended range of, 1% to 10% of the population. Data collected was analyzed by both descriptive and inferential statistics using statistical package for social sciences (SPSS Version 28). Descriptive statistics involved calculation of means, frequencies, percentages and standard deviation. Model diagnostic tests such as Normality test, Multicollinearity, Heteroskedastity were also executed for determination of fitness of regression models. Inferential statistics further included the use of Pearson correlation coefficient to determine the extent of relationship between the independent study variables, while multiple regression analysis was used to establish the relationship between dependent variable and independent variables. The results from the analyzed data were then presented using figures, charts, tables and histograms to facilitate data interpretation. Findings from data analysis indicated that green stocks practices significantly affect supply chain leverage of sugar manufacturing firms in Kenya. This yielded a regression model Y = 2.507 + 0.117X. The findings from the regression models indicated that buffer stocks practices, significantly affected supply chain leverage of sugar manufacturing firms in Kenya. The study further recommended that sugar manufacturing firms in Kenya, to keep buffer stocks to overcome any uncertainties in the demand and supply markets and support continuous production even with seasonal variation in the supply of raw materials to ensure full capacity of operations, production efficiency, cost control and environmental protection. As a result idle time for the machines and people will be completely zero rated, through continued production process without a halt, even when there is shortage of raw materials in the market, hence continued supply of sugar products in the market.