The Influence of Inventory Management Practices on the Performance of Manufacturing Enterprises
Purpose: This study assessed the effect of inventory management on the performance of manufacturing enterprises. Design/Methodology/Approach: The study used a descriptive research design and adopted convenience sampling techniques. The population of the study was made up of 317 staff of Nutrifoods construction limited. The sample size of the study was 76 respondents. The study employed Questionnaire as a Data collection tool and analyzed data gathered using inferential analysis. Findings: The study results showed that inventory management policies used were not effective. The study discovered that there are various inventory management techniques adopted in the organization, namely ABC analysis, just in time technique, Material requirement planning method, Economic order quantity method, and Minimum safety stock, with Just in time inventory management technique being the most used. Practical implications: The research focused on identifying and assessing the effectiveness of inventory management policies used, ascertaining the nature of the relationship between inventory management procedure and adequate inventory supply, and evaluating the effect of inventory management procedure on the performance of an organization. Originality value: The study concludes that the nature of the relationship between inventory management procedure and adequate inventory supply is a significant strong positive relationship and that inventory management procedure has a positive effect on how well an organization performs.