Consignment Inventory System and Obsolescence Management in the Drilling Fluid Firms in Nigeria

Abstract

This study investigated the consignment inventory system and obsolescence management in the drilling fluid firms in Nigeria. The study adopted cross sectional design and ex-post facto design. A total population of 9432 and sample size of 384 was determined using Taro Yamane Formula at 0.05 level of significance using purposive and proportionate stratified random sampling technique. The 384 copies of questionnaire were administered, only 317 was deem fit after processing, retriever, coding and cleansing. The Split Half method was employed to determine the reliability of the instrument with Spearman Prophesy approach. Four research questions and four hypotheses were raised which was tested with Pearson Product Moment Correlationand Partial Correlation because of the bivariateand multivariate functionrespectively via SPSS 25 version. From the findings, consignment inventory system positively correlates with the obsolescence management. Hence, it was revealed that the alternate hypotheses were accepted. In conclusion, the explanatory variable has positive significant influence response variable. From the findings, maximum stock level, re-order stock level and minimum stock level expresses strong correlates on reactive and proactive obsolescence management in the short term and long term. It could be recommended that re-order level should only be implemented and demonstrated by the top management of the drilling fluid companies because of its complexity towards balancing the ordering cost and holding cost.