Correlate of Inventory Management and Organizational Performance (original) (raw)
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Iconic Research And Engineering Journals, 2018
Inventory management has been a problem to many business organizations in Nigeria. Hence, it has become imperative to identify and enlighten management on the proper use of inventories. How inventory management systems affects operational performance in manufacturing firms is the primarily concern of this study. To further investigate the study and accurately analyze the result, three hypotheses were formulated. A descriptive research design random sampling techniques were employed where the sample size comprised of a total of sixty (60) staff were randomly selected from May and Baker Manufacturing Nigeria Limited in Lagos State. A non-parametric statistics of chi-square was employed to test for the relevant hypotheses. The outcome of this study reveals that, there is significance relationship between poor inventory management system and organizational performance. This study conclude that, failure to maintain a proper, adequate and accurate inventory control management will results in fall in profit and performance of May and Baker Nigeria Limited and vice-versa. It was recommended that, the organization should avoid the dangers that are inherent in keeping too little or too much of stock. There is also the need for organizations to train their personnel in the area of inventory control management. In general, the findings that emerged from this study have indicated that organizations stand to gain a lot from effective inventory control management system. Some of this benefit include optimal use of resources, cost reduction, improved profitability, reduction of waste, transparency and accountability, easy storage and retrieval of stock amongst others.
Several penalties could be apportioned to excesses in either direction. Inventory management has been a problem to many business organizations in Nigeria. Hence, it has become imperative to identify and enlighten management on the proper use of inventories. How inventory management systems affects operational performance in manufacturing firms is the primarily concerned of this study. To further investigate the study and accurately analyse the result three hypotheses were formulated: the relationship between poor inventory management system and organizational performance, incapability of organizational policy and inventory management system as well as the relationship between inventory management system and profitability in manufacturing industries. A descriptive research design random sampling techniques were employed where the sample size comprised of a total of sixty (60) staff were randomly selected from May and Baker Manufacturing Nigeria Limited in Lagos State. A non-parametric statistics of chi-square was employed to test for the relevant hypotheses. The outcome of this study reveals that, there is significance relationship between poor inventory management system and organizational performance. It was also reveals that the incapability of organizational policy negatively impacts inventory management system and finally, the outcome of this study also gathered that, there is a positive and direct relationship between inventory management system and profitability in May and Baker Nigeria Limited. This study conclude that, failure to maintain a proper, adequate and accurate inventory control management will results in fall in profit and performance of May and Baker Nigeria Limited and vice-versa. It was recommended that, the organization should avoid the dangers that are inherent in keeping too little or too much of stock. There is also the need for organizations to train their personnel in the area of inventory control management. In general, the findings that emerged from this study have indicated that organizations stand to gain a lot from effective inventory control management system. Some of this benefit include optimal use of resources, cost reduction, improved profitability, reduction of waste, transparency and accountability, easy storage and retrieval of stock amongst others.
This study took into consideration the relationship between effective system of inventory management and organization performance in the seven-up bottling company, Nile Mile Enugu. The researchers were motivated to embark on this study, in order to bring to fore the importance of effective inventory control system on organizational performance as it relates to the bottling company. A total of eighty-three respondent constitute the sample for the study. Four research questions and Four hypotheses were generated and tested at 10% (that is 0.10) significant level using descriptive statistics and non-parametric test (chi-square that is, ). The result of the analysis showed that flexibility in inventory control management is an important approach to achieving organizational performance. It was found that organizations benefits from inventory control management by way of easy storage and retrieval of material, improved sales effectiveness and reduced operational cost. The study also found that there is a relationship between operational feasibility, utility of inventory control management in the customer related issues of the organization and cost effectiveness technique are implemented to enhance the return on investment in the organization. Effective inventory control management is recognized as one of the areas management of any organization should acquire capability. It is recommended that organizations should adopt the inventory keeping method that best suit their operations.
2020
This study examines the effect of inventory management on organizational operations, productivity, as a means of causing the profitability of companies. The study was, therefore designed to study how the manufacturing firms managed their inventory materials. We used questionnaire in collecting our data. The data collected was analysed using spearman's rank-order correlation coefficient and the Pearson product-moment correlation coefficient. The findings indicated that the method used by 7Up Bottling Company to manage their inventories in both raw materials and the finished product was efficient as the amount of naira saved in the course of purchase have more effect on the profitability of the company during production/ selling of the finished goods. Controlled purchasing is found to be costeffective. The study recommends the following: an adoption and application of the economic order quantity (EOQ) model to save cost and make the operations more efficient.
This study looked at the relationship between inventory management and financial performance. The population of the study comprises all conglomerate quoted company in the Nigerian stock exchange market as at 31 st December 2010. The scope of the study covered the period from 2010 to 2014. Descriptive, Pearson correlation and multiple regressions are used to analyze the data. It was found that inventory management is significantly related to the profitability of a company. This entails that; an efficient management of inventory cycle will enhance the profitability of a company. Also, lack of proper management of it will hinder the financial performance of the organizations. Based on the result, it was recommended that Conglomerate Company should try to see that inventories are kept to the minimum, as well as make sure that proper checks are kept to make sure only needed inventories are in the store and also to keep track of the movement of goods, in order to avoid necessary delay of finished and WIP goods in the store and warehouse.
This study was about the effect of inventory control management systems on organization performance in Tanzania manufacturing industry: a case study of food and beverage manufacturing company in Mwanza City. The specific objectives of the study were to: determine the types and purposes of inventory control management practices followed ascertain the influence of inventory control management practices on organizational performance and determine how technology adopted in operationalization of inventory control management practices affect organization performance. In order to accomplish the objectives, qualitative approach methodwas adopted. Using purposive sampling, five participants in the inventory and production department were selected and interviewed. Data was analyzed using content analysis techniques with the aid of Nvivo Qualitative Analysis software. Other data was collected from documentary review company and industry published reports. The findings of the study revealed that the food and beverage manufacturing company had evidence of different types of inventories which included raw materials, work-in-progress and finished goods managed under FIFO system for cost reduction and production efficiency. It was also evident that the company carried inventory control management using perpetual inventory system done on periodic basis and inventory system is combined with acomputerized database of inventory quantities at various locations for updating in real time by store and warehouse using barcode scanners. It was also revealed that inventory control management system using principles of Economic order quantity [EOQ]affects organizational performance in terms of cost reduction, production efficiency, flexibility and profitability. The study recommends an implementation of new practices/models such as Vendor Managed Inventory (VMI) in the company's inventory control management.
Inventory Management System and Performance of Food and Beverages Companies in Nigeria
Inventory management decisions are an integral aspect of organisations. Inventory postponement as argued by is where a firm deliberately delays the purchase and the physical possession of inventory items until demand or usage requirements are known with certainty. This is an effective supply chain strategy adopted by most manufacturing organisations by reducing the inventory, and in turn reducing the cost of obsolete stock. This study explores the relationship between inventory management and control and performance and Food and Beverages companies in Nigeria. Secondary data were obtained from annual financial reports and accounts of Food and Beverages companies listed on the Nigerian Stock Exchange. The data obtained were analyzed using simple and multiple regression models. The results show that there significant relationship between inventory management and control and the performance of Food and Beverages companies in Nigeria. The multiple regression correlation coefficient (R) =0.996, R2=0.990 and pvalue =0;00<0.05 The results also show the relative importance of the inventory management decisions made by the organisation, and the implications these decisions have on the consumer. The findings show that the three key qualities that are essential in inventory management decisions for manufacturing organisation from the perspective of the third party logistics provider are customer satisfaction, on time delivery and order fulfillment.
International Journal for Research in Applied Science & Engineering Technology (IJRASET), 2022
This research study examined the impact of inventory management on organizational performance in telecom companies. The study used a descriptive study design, and SPSS was used to conduct statistical analysis. In order to choose the samples, the researcher used both purposive and simple random sampling methods. Data for the study was collected from 130 respondents out of which 92 responded making the research valid. The relationships and hypothesis proposed in the conceptual framework were tested using multi-linear regression equation model. The research results indicate that higher levels of inventory management practice can lead to an enhanced competitive advantage and improved organizational performance. The study also accepted the hypothesis that was tested that inventory management and organizational performance have a significant positive relationship. Therefore, it is recommended that telecom organizations in Uganda should adopt Vendor management inventory, maintain good communication with the suppliers as this helps to eventually transfer inventory management responsibilities from the company's procurement function to the vendors thus revamping organizational performance and increasing their competitiveness. They should also update their inventory management system in order to improve effectiveness by investing more money in the latest IT systems and utilizing sophisticated technologies such as purchasing fuel sensors for inventory monitoring and management so as to minimize on downtime and as well as cost reduction. The research study also suggests that management should take a more proactive approach to the problem of inappropriate inventory management strategies being used by constantly exposing its employees to training on a regular basis in order to strengthen their inventory management skills and allow them to understand current inventory management systems thus if implemented it can enable the company in lowering costs by ensuring that stock records are maintained accurately and kept in order to prevent the risk of overstocking or understocking.
Food and beverage manufacturing companies faced several challenges with regards to their daily operations. These challenges have continued to affect their performance in the form of low product quality, decline in sales, excessive inventory and low product turnover. Key challenge to the companies is poor inventory management and implementation. Inventory management is the backbone of many manufacturing companies around the world which when properly managed contributes immensely in improving firm performance. The food and beverage manufacturing companies in Nigeria however faces issue with regards to poor management and control of materials within the sector which contributes to its low performance. This studytherefore examines the effect of inventory management on profitability of food and beverage manufacturing companies in Lagos State, Nigeria. A cross sectional survey research design was adopted. The target population comprised of 2027 top, middle and lower level managers within the selected food and beverage companies in Lagos State, Nigeria. Stratified random sampling technique was used for the study. A validated questionnaire was used. Cronbach's alpha coefficients for the constructs ranged from 0.702 to 0.955. Data was analysed using descriptive and inferential statistics.The findings revealed that inventory management had significant effect on profitability of selected food and beverage manufacturing companies in Lagos State, Nigeria (Adj. R 2 = 0.538, F (4, 351) = 104.185, p < 0.05). The study concluded that inventory management affects profitability of selected food and beverage manufacturing companies in Lagos State, Nigeria. The study thus recommended that proper inventory management techniques should be put in place by the companies in order to avoid delays, wastage and increase the overall profitability.
Sokoto Journal of the Social Sciences, 2019
This paper examines the effect of inventory management practice on operational performance of Nigeria Breweries Company, Kaduna State. A descriptive and survey research design was adopted for the study. The study has a population size of 130 staff, out of which a sample size of 97 was realized using Krejcie and Morgan's table for sample determination. Structured questionnaire was the primary instrument used for data collection. Out of the 97 copies of questionnaire administered to the respondents only 89 copies of the questionnaire were returned while 8 were not returned. Data collected were analysed using multiple regression statistical tools with the aid of SPSS version 23. Findings from the study show that, inventory management practised by Nigeria Breweries Company has significantly affected their operational performance through operational efficiency, customer satisfaction and high productivity. This indicates that there is a correlation between good inventory management practice and operational performance of Nigeria Breweries. The study confirmed that inventory management is essential in the operation of any manufacturing company. The study recommends among others that, Management of Nigeria Breweries Company should put in place strong stock control measures through the use of multiple records keeping of stock values at each stage of their operation. This will help management to immediately dictate stock discrepancies which will guide against inventory shrinkage.