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Daniel Ndirangu Githumbi

College of Human Resource and Development,

Jomo Kenyatta University of Agriculture and Technology

P. O. Box 62000, 00200 Nairobi, Kenya

Corresponding Author email: This e-mail address is being protected from spambots. You need JavaScript enabled to view it


Dr. Joseph Mwangi Gichure, Ph.D.

College of Human Resource and Development,

Jomo Kenyatta University of Agriculture and Technology

P. O. Box 62000, 00200 Nairobi, Kenya.


CITATION: Githumbi, D., N., & Gichure, J., M. (2018). Relationship Between Supply Chain Planning and Stock Levels in Supermarkets in Kenya: A Case of Tusker Mattresses Limited. International Journal of Human Resources and Procurement. Vol. 7 (2) pp 23 – 42.


The study sought to expound on the effects of supply chain planning on optimal stock levels in Tusker Mattresses supermarkets in Kenya. Stock levels are an important part of supply chain management. It directly impacts on the firms’ profitability, as it represents a big portion of the current assets and working capital of the retail stores. Supply chain planning aims at taking appropriate decisions and actions that enables availing of desired goods in a cost effective way, to meet and surpass customer requirements. There is little empirical evidence in the Kenyan context to establish such a relationship hence the need of the study. The main objective of this study was therefore to examine the role of supply chain planning on determination of optimum stock levels in retail stores. The key questions this sort to investigate was the influence of supply chain planning on optimal stock levels. And also establish which supply chain planning strategies can be adopted to achieve optimum stock levels in retail stores. The Resource-Based View Theory RBVT, Transaction Cost Economics Theory (TCET), Social Network Theory (SNT) and The Assimilation Contrast Theories was used to guide the research process. To achieve the study objective and answer the research questions. The study adopted a descriptive and correlation research design. A survey was undertaken targeting staff of Tuskys Mattresses ltd. A sample of 66 staff out of 188 total staff establishment who includes the managers and supply chain officers from 52 outlets in Kenya participated. Questionnaires were used as the main data collection instruments for primary data, and it was administered online. Secondary data from the supermarket was analyzed and recorded. Data collected was analyzed using SPSS. This generated frequency tables took into account the relationship between the various supply planning components and optimal stock levels. A multiple regressions was performed to determine all the relationship between dependent and independent variables. The study establishes there is a relationship between supply chain planning factors and optimum stock levels in retail stores. However, only a third of the variation on stock level in Tuskys supermarket stores can be attributed to demand planning and forecasting, supply network planning, vender managed inventory and logistic planning; whereas two thirds of the variation on stock levels is affected by other variables not studied.


Key words: Demand Planning & Forecasting, Supply Network Planning, Vendor managed inventory, Logistics Planning, Stock Levels

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