Inventory Management Practices and Operational Performance of Manufacturing Firms in Ghana (original) (raw)
Related papers
Inventory Management and the Performance of Listed Manufacturing Firms in Ghana
Open Journal of Business and Management
The purpose of this research was to investigate how inventory management affected the performance of manufacturing enterprises in the Kumasi Metropolis. In addition, the research used both descriptive as well as explanatory research approaches. The research demographic included all of the manufacturing companies in Ghana's Kumasi Metropolis, and the target demographic included all of the staff members who work in essential departments of the manufacturing businesses sited throughout the Assembly. The total population is 62. The sample size was determined using the Yamane sample size determination formula in the study. Because the population and location of manufacturing companies were available, probability sampling was utilized in this investigation, with a sample size of 54. According to the research, a one-unit gain in inventory management leads to a 20.3 percent, 31.9 percent, and 21 percent rise in marketplace efficiency, financial results, as well as client satisfaction, respectively. Ultimately, the research shows that stock management is a factor in the success of manufacturing companies. As a result, it is advised that optimum stock management methods be implemented in order to improve the operation of industrial enterprises in Ghana's Kumasi Metropolis.
Inventory Management and Operational Performance of Manufacturing Firms in South-East Nigeria
International Business Research, 2019
This study aims to ascertain the relationship between inventory management and operational performance of quoted manufacturing firms in the south-east; one of the geographic regions with high industrialization prospects in Nigeria. To achieve this, operational performance of manufacturing firms and their association with components of inventory management; inventory cost, just-in-time approach, materials requirement planning and strategic supplier partnership, was examined through a questionnaire. Three hundred and seventy-one copies of a questionnaire issued to five hundred and thirty-eight sampled respondents of four quoted manufacturing firms in the south-east region of Nigeria were properly filled and found relevant to the study. The study used SPSS and Excel-based descriptive statistics to analyze the data collected. Regression analysis was used to test the hypotheses of the study. Study results conclude that there is a positive significant relationship between; inventory cost,...
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.
The manufacturing sector plays an important role in the Ghanaian economy, therefore, this study deems it necessary to investigate the impact of efficient inventory management on the profitability of manufacturing firms in Ghana. The study design was cross sectional. The study employed the use of secondary data. Cross sectional data from 2004 to 2014 was gathered for the analysis from the annual reports of four manufacturing companies listed on the Ghana Stock Exchange. Judgmental sampling was used to select the four companies and only manufacturing companies listed on the Ghana Stock Exchange (GSE) whose data was up to date were considered. Measures of profitability were examined and related to proxies for efficient inventory management by manufacturers. The Ordinary Least Squares (OLS) stated in the form of a multiple regression model was used in the data analysis. The study revealed that there is a significantly strong correlation between the main variable, raw materials inventory management and profitability of manufacturing firms in Ghana and it is positive. Therefore, efficient management of raw material inventory is a major factor to be considered by Ghanaian manufacturers in enhancing or boosting their profitability. This study is only based on manufacturing companies and listed on the Ghana Stock Exchange so it may reflect some partial.
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 aimed at examining the role of inventory management practices in the performance of the production department. The study sought to find the inventory management techniques used by manufacturing firms in Mombasa County, established the level of effectiveness of inventory management practices of manufacturing firms in Mombasa County. It also determined the level of performance of production departments of manufacturing firms in Mombasa County and finally determined whether computerized inventory management influences the performance of the production department. The study adopted the descriptive research design. The target population was textile, rolling mills and food and beverage manufacturing firms in Mombasa County. A survey was conducted which adopted stratified random sampling technique. Out of 150 manufacturing firms, a sample size of 45 manufacturing firms was used.
The Inventory Management Practices and Organizational Performance. A Case Study of Taso Mbarara
Industries are key to many economies they are used as a proxy for country's economic growth and development. The steel industry constitutes about 15% of the aggregate production by manufacturing firms hence it plays a key role in the performance of a country's GDP and many are forecasting that its demand will continue to rise due to various development activities the national government and private firms have embarked on towards realisation of the country's vision 2030. Inventory management is critical in the aspects of organization performance within the context of steel industries therefore steel companies must check on their inventory management practices in order not to impact on their Organization performance. This is achievable through operation at absolute minimum stock out events with prompt response to market fluctuations while at the same time carrying minimal buffer stocks. The study sought to fill the existent literature gap in the area of inventory management and organization performance in the steel industry. Descriptive research design was used in the study. The target population for this study were employees in the, Quality, administration, sales and marketing, production departments of three steel companies in Nairobi County Kenya. The study employed both primary and secondary during the stages of data collection where questionnaires were administered through drop and pick method while secondary data was obtained from the firms published comprehensive profit and loss statement particularly the company's sales. A sample size of 45 respondents was utilized. The pilot study was conducted using a pretest of the questioner using 10% of the respondents that is 5 respondents. The validity of the data collection instrument was examined during the pilot study using a set of experts in the area inventory management as well as the supervisors. The reliability of the data collection was examined through the use of the cronbach alpha coefficient of a threshold of 0.7 and above. The researcher used descriptive method as well as SPSS. V.23 to analyse data. The research established that there is a positive and significant correlation between Economic order quantity and organization performance of steel manufacturing companies in Nairobi County. The study also found a significant positive correlation between Material/Inventory control and organization performance. It also established an existence of a positive and significant correlation between quality control and organizational performance. However, the study found a negative correlation between Legislation and organization performance. The study concludes that organization performance among steel firms in Nairobi County is influenced by Economic order quantity, material/inventory control and quality control. The study therefore recommends that the stakeholders should consider these factors in order to improve the performance of steel manufacturing firms as well as developing policies to protect local steel manufacturing firms from stiff completion from firms in developed countries particularly from China and U.S.A.
2015
This study aimed at examining the role of inventory management practices in the performance of the production department. The study sought to find the inventory management techniques used by manufacturing firms in Mombasa County, established the level of effectiveness of inventory management practices of manufacturing firms in Mombasa County. It also determined the level of performance of production departments of manufacturing firms in Mombasa County and finally determined whether computerized inventory management influences the performance of the production department. The study adopted the descriptive research design. The target population was textile, rolling mills and food and beverage manufacturing firms in Mombasa County. A survey was conducted which adopted stratified random sampling technique. Out of 150 manufacturing firms, a sample size of 45 manufacturing firms was used. A questionnaire was used as data collection instrument. One questionnaire was issued to one responden...
The purpose of this study was to assess inventory management practices and its effect on the financial performance of SMEs in the Northern Region of Ghana. The study adopted a descriptive cross-sectional survey research design which allowed the collection of primary quantitative data through structured questionnaires. The target population was 1000 owner/ managers of SMEs. Stratified random sampling technique was used to obtain a sample of 300 SMEs comprising 164 trading 26 manufacturing, 10 hairstyling, 62 dressmaking, and 38 carpentry enterprises. The data was analyzed using both descriptive and inferential statistics. The study revealed that SME financial performance was positively related to efficiency of inventory management (EIM) at 1 per cent significance level. The study concluded that stock management practices have influence on the financial performance of SMEs, hence there was need for SME managers to embrace efficient stock management practices as a strategy to improve their financial performance and survive in the uncertain business environment. Keywords: Inventory Management Practices, Financial Performance, SMEs
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.