The Effect of Logistic Management Practice on the Performance of Food Manufacturing Industry: The Case of Fafa Food Share Company
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Date
2016-06
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Addis Ababa University
Abstract
In this paper, the effect of logistic management practice on performance of fafa foods
Share Company is investigated. Logistic management practice is one of the functions
accomplished in the company among the other practice. The specific objective of this
research is to investigate individual logistics practices such as product quality, logistic
responsiveness, product variety, delivery time and logistic cost on performance. To
check whether these variable practices affect or not, 241 samples were selected from
kolfe keraniyo and Gulele sub cities from the existing 610 registered lists. To determine
the sample size, total distribution route are listed in the table and the sample size is
computed proportionally from each rout using systematic sampling. Only quantitative
data was used in this research.
Data analysis was performed with the use of stepwise regression analysis using SPSS
20 statistical software. To check the internal consistency of the data cronbach alpha test
was conducted.
Finding showed that Product quality has statistically significant effect on performance
from the point of view of customer satisfaction followed by product variety, delivery time
and responsiveness. The study recommends that there should be dedication and
apparent motivation on the parts the company and of all agents who distribute the
company’s products with respect to the product quality and responsiveness of the
logistic function for the better performance of the company and better profit. The
company as much as possible should work for further enhancement of the management
of the logistic function
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Keywords
Fafa food, Food manufacturing industry