Abstract:
The study sought to determine the effect of inventory control practices on production
efficiency of Dashe Brewery Gondar branch. The objective of the study was to measure
the production performance of Dashe Brewery Gondar branch. The research designs
involved were descriptive and inferential explanatory design. Data were collected from
80Dashe Brewery Gondar branch employees using a survey questionnaire that was
administered to employees and conducted by researcher. Tables were used to present
data. Descriptive statistics like mean and standard deviation were used to analyze
demographic and each constructs under investigation, whereas inferential statistics like
Correlation and regression analysis were used to measure the relationship between
independent and dependent. The result of the study established that the inventory
management practices are greatly used to establish the production efficiency of Dashen
Brewery Gondar branch. Capacity utilization (b=0.382) has the most positive influential
effect on production efficiency, followed by stock availability, inventory management
practices, inventory accuracy and stock out practices (b = 0.265, b = 0.196 b = 0.180,
and b = 0.156) respectively at p value <0.001. It was also found that there is a
significant relationship between inventory control and production efficiency represented
by R2
value of 0.860 which translates to 86.0% variance explained by the five
independent variables.
