Cheboi, Amos K.2026-06-282025https://repository.kcau.ac.ke/handle/123456789/1153In Kenya, sugar manufacturing firms face challenges relating to inventory management that hampers their operations. It is evident that inventory management practices are crucial in improving the performance of any manufacturing firm but few studies have examined the effects of different inventory practices in the performance of sugar manufacturing firms in the country. The main objective of the study was to establish the effect of inventory management practices on performance of sugar manufacturing firms in Kenya. The specific objectives of the study were to; analyze the effect of Economic Order Quantity adoption on performance, evaluate the effect of vendor managed inventory practice on performance, establish the effect of ABC analysis on performance and assess the effect of Just in Time production technique on performance of sugar manufacturing firms in Kenya. The study was guided by scientific management theory, lean theory, contingency theory and system theory. Descriptive research design was adopted by the study. The study targeted 105 respondents comprising of 15 Factory managers, 15 Supply chain managers, 15 Operations managers, 15 Sales and distribution managers, 15 Finance managers, 15 Warehouse supervisors and 15 Marketing managers. Census sampling approach was utilized where all the respondents participated in the study during data collection. Pilot test was conducted at Chemelil Sugar Company Ltd. Reliability was tested using Cronbach’s alpha. Validity of research instruments was tested using KMO test and Bartlett’s test. Data was analyzed using descriptive statistics such as, frequency and percentages and inferential statistics such as correlation and regression analysis. Diagnostic tests such as normality test, autocorrelation test, heteroscedasticity test, and multicollinearity test were conducted. The results were presented using Tables and Figures. The correlation results indicated that economic order quantity, vendor managed inventory, ABC Analysis and Just in time had a correlation coefficient of 0.885, 0.891, 0.894 and 0.898 each with a p value of 0.000 respectively indicating a positive and significant relationship between each of the independent variable and the dependent variable. The results indicated an R² value of 0.220 depicting that 22.0% of the variation in company performance is accounted for by the collective impact of the inventory management practices analyzed. Regression results indicated that economic order quantity, vendor managed inventory, ABC Analysis and Just in time had a regression coefficient of 0.466, 0.405, 0.245, and 0.285, respectively indicating positive and significant effect on performance of sugar manufacturing firms. The study concluded that economic order quantity, vendor managed inventory, ABC Analysis and Just in time had a positive and significant effect on performance of sugar manufacturing firms. The research recommended that sugar production companies should establish EOQ practices by routinely calculating optimal order quantities to reduce holding and ordering expenses. The study also recommended that companies work together with suppliers to create and implement delivery timelines that match production needs, guaranteeing prompt and sufficient restocking. The study also suggested that sugar should conduct periodic assessments and revisions of ABC inventory classifications to align with existing consumption trends and worth. Future researchers should investigate why EOQ principles are not consistently applied or integrated into inventory management systems.enThesis