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4.5 Null Hypothesis Three: There is no Significance Relationship between Inventory
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Fig 6.Reveals toexamine whether CAAFICompanyalwaysmatchesitssupplyvolumetocustomer demand.Based on the results fig 6, 21 (22.8%) 0f the respondents strongly agreed that CAAFI Company always matches its supply volume to customerdemand, 23 (25%) of the respondents agreed,13 (14.1%) of the respondents were neutral. Finally, 22 (23.9%) of the respondents disagreed that CAAFI Company always matches its supplyvolume to customer demand, while 13 (14.1%) were strongly disagreed CAAFI Company always matches its supply volume to customer demand. This is supported by Deloof, (2003) who states the primary function of an Inventory Optimization solution is to allow companies to effectively fulfill demand and identify how to gain additional profits from their inventories. Improved efficienciesthrough effective resource management and optimization lead to an increase in service level, improved performance.
Table 4.15 Inventory Optimization Enables CAAFI Company to do the Job Faster, More Accurate with Business Profit
Valid Frequency Percentage
Strongly Agree 22 23.9%
Agree 23 25%
Neutral 21 22.8%
Disagree 16 17.4%
Strongly Disagree 10 10.9%
Total 92 100%
Source: primary data 2019
Table 4.15 is sought to examine whether inventory optimization enables CAAFI Company to do the job faster, more accurate with greater business profit. According totable4.15, it shows that 22 (23.9%) of the respondents were strongly agreed inventory optimization enables CAAFI Company to do the job faster, more accurate with greater business profit, 23 (25%) of the respondents agreed, and 21 (22.8%) of the respondents were neutral. Table 4.20 also depicts that 16 (17.4%) of the respondents disagreed that inventory optimization enablesCAAFI Company to do the job faster, more accurate with greater business profit, while 10 (10.9%) of the respondents were strongly disagreed inventory optimization enablesCAAFI Company todo the job faster, more accurate with greater
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business profit. This is supported by Deloof, (2003) who states Inventory optimization is the key to keeping the profitability of a company at a constant level and to increasing the company‟scompetitiveness. Inventory optimization- takes inventory management tothe next level,enablingbusinessestofurtherreduceinventory levels while improving customer service levels and maximizing capitalinvestments
Table 4.16 CAAFI Company Uses Software that Capable of Solving Complex Inventory Optimization Problems
Valid Frequency Percentage
Strongly Agree 23 25%
Agree 34 37%
Neutral 7 7.6%
Disagree 19 20.7%
Strongly Disagree 9 9.8%
Total 92 100%
Source: primary data 2019
In table 4.16, the researcher wants examine CAAFI Company uses softwarethat capable of solving complex inventory optimization problems. The findings in table 4.16, 23 (25%) of the respondents were strongly agreed that CAAFI Company uses software that capable of solving complex inventory optimization problems,34 (37%) of the respondents agreed, 7 (7.6%) of the respondents were neutral. While 19 (20.7%) of the respondents disagreed CAAFI Company uses software that capable of solving complex inventory optimization problems, 9 (9.8%) of the respondents were strongly disagreed CAAFI Company uses software that capableof solving complexinventoryoptimizationproblems.Basedontheresultsoftable4.21, the majority of the respondents agreed thatCAAFI Company uses software that capable of solving complex inventory optimizationproblems.
Table 4.17 CAAFI Company Established Effective Supply Chain Management
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Valid Frequency Percentage
Strongly Agree 15 16.3%
Agree 19 20.7%
Neutral 10 10.9%
Disagree 32 34.8%
Strongly Disagree 16 17.4%
Total 92 100%
Source: primary data 2019
Establishing effectivesupply chain management is very important to any organization. Based onthe findings of table 4.17, it reveals that 15 (16.3%) of the respondents were strongly agreed that CAAFI Company established effective supply chain management, 19 (20.7%) of the respondents agreed, while 10 (10.9%) of the respondents were neutral. The table also shows that 32 (34.8) of the respondents disagreed that CAAFI Company established effective supply chainmanagement, 16 (17.4%) of the respondents were strongly disagreed CAAFI Company established effective supply chainmanagement. However‟themajority ofrespondentsdisagreed that CAAFICompany established effective supply chain management. This is supported by Afzaand Nazir, (2007), they argues that effective supply chain management givethebusinessacompetitiveadvantageinthe market place and mitigate risks associated with acquiring raw materials and delivering gproducts.
Table 4.18 CAAFI Company Distribute Finished Goods to the Customers
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Valid Frequency Percentage
Strongly Agree 19 20.7%
Agree 25 27.2%
Neutral 17 18.5%
Disagree 23 25%
Strongly Disagree 8 8.7%
Total 92 100%
Source: primary data 2019
According to findings of table 4.18 , it indicates that 19 (20.7%) of the respondents were strongly agreed that CAAFI distribute Finished goods to the customers at right place and time, 25 (27.2%) of the respondents agreed, while 17 (18.5%) of the respondents were neutral. Based on the findings of table 4.18, if depicts that CAAFI distribute finished goods to the customers at right place and time, and also it shows that 8 (8.7%) of the respondents were strongly disagreed CAAFI distributeFinished goods to the customers at rightplace and time. Thereforethemajority of the respondents agreed that that CAAFI distribute finished goods to the customers at right place and time. This in line with the view of Deloof(2003) who argues companies can increase their customer service level through distributing the products at the right time and place to reach their target audiences to the marketplace.
The study also attempts to examinewhetherthereis relationship between Inventory Optimization and Financial Performance of CAAFI mineral water Mogadishu Somalia. The study also employed Pearson correlation todetermine whether their relationship between Inventory Optimization and Financial Performance of CAAFI mineral water Mogadishu Somalia.
Table 4.14 Correlations
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Financial Inventory Performance Optimization Financial Pearson Correlation 1 .802**
Performance Sig.(2-tailed) .000
N 92 92
Inventory Pearson Correlation .802** 1
Optimization
Sig.(2-tailed) .000
N 92 92
**. Correlation is significant at the 0.01 level (2-tailed).
Correlation is a statistical that indicates the extent towhich two or more variables Fluctuate together. The results in table 4.19, there is a strong and positive relationship between Inventory Optimization and Financial Performance of CAAFI mineral water Mogadishu Somalia. [r=.802, P<0.05]. The result of table 4.19 shows that there is strong andpositive significant relationship between Inventory Optimization and Financial Performance of CAAFI mineral water Mogadishu Somalia. This result rejects thenull hypothesis that there is no relationship between Inventory Optimization and Financial Performance of CAAFI mineral water MogadishuSomalia.