Authors :
Desta Faltaso Mena; Legese Lemma Chuma
Volume/Issue :
Volume 5 - 2020, Issue 12 - December
Google Scholar :
http://bitly.ws/9nMw
Scribd :
https://bit.ly/3huIKQU
Abstract :
The main objective of this study was to
investigate the effect of logistics practice on operational
performance of the Arjo Didesa Sugar Factory.
Therefore, explanatory research design with both
qualitative and quantitative approach was used in order
to explain the effect of logistics practices on operational
performance. The sample of 219 respondents from Arjo
Didesa sugar factory working in factory operation and
supply and facility management was taken for the study
and data were collected from 186 respondents. A
stratified random sampling was applied; in which the
target population is stratified and then, sample was
randomly selected from each stratum. Purposive sampling
was used for the interview of the managers of respective
department. Both primary and secondary sources of data
were used for study. The questionnaire with closed ended
questions and semi-structured interview were used to
gather data. Mean is employed in order to summarize and
describe quantitative information. From inferential
statistics, multiple linear regression were used to analyze
the effect of logistics practices on the operational
performance and to determine the relationship between
variables, correlation analysis was also used. The findings
of the study revealed that transportation and inventory
management have high significant positive effect on
operational performance even though procurement
practice, information flow and warehousing have positive
significant effect on operational performance. In order to
improve operational performance of the factory,
researchers recommend to Arjo Didesa sugar factory to
upgrade investment on infrastructure for transportation
of raw materials within factory. Researchers also initiated
to provide recommendation on using principle of
economic order quantity that enable effective inventory
management.
Keywords :
Logistics, Logistics Practices, Operational Performance, Sugar Factory.
The main objective of this study was to
investigate the effect of logistics practice on operational
performance of the Arjo Didesa Sugar Factory.
Therefore, explanatory research design with both
qualitative and quantitative approach was used in order
to explain the effect of logistics practices on operational
performance. The sample of 219 respondents from Arjo
Didesa sugar factory working in factory operation and
supply and facility management was taken for the study
and data were collected from 186 respondents. A
stratified random sampling was applied; in which the
target population is stratified and then, sample was
randomly selected from each stratum. Purposive sampling
was used for the interview of the managers of respective
department. Both primary and secondary sources of data
were used for study. The questionnaire with closed ended
questions and semi-structured interview were used to
gather data. Mean is employed in order to summarize and
describe quantitative information. From inferential
statistics, multiple linear regression were used to analyze
the effect of logistics practices on the operational
performance and to determine the relationship between
variables, correlation analysis was also used. The findings
of the study revealed that transportation and inventory
management have high significant positive effect on
operational performance even though procurement
practice, information flow and warehousing have positive
significant effect on operational performance. In order to
improve operational performance of the factory,
researchers recommend to Arjo Didesa sugar factory to
upgrade investment on infrastructure for transportation
of raw materials within factory. Researchers also initiated
to provide recommendation on using principle of
economic order quantity that enable effective inventory
management.
Keywords :
Logistics, Logistics Practices, Operational Performance, Sugar Factory.
