Inventory Forecasting and Control Decisions for Effective Inventory Management in the South African Automotive Component Manufacturing Industry: Pre COVID-19 and Lockdown Period

Abstract

The COVID-19 global health pandemic significantly affected the global economy and the automotive industry when lockdown measures were implemented. This study seeks to investigate the influence of inventory forecasting and control decisions on effective inventory management in the South African automotive component manufacturing (SAACM) industry. Using a positivistic paradigm with a quantitative research approach, data was sourced from 162 Automotive Component Manufacturers (ACMs) to establish whether their inventory forecasting and control decisions changed from prior COVID-19 to the lockdown period during the COVID-19 pandemic. The multiple regression analysis found statistically significant relationships between inventory forecasting decisions and effective inventory management prior to COVID-19, inventory control decisions and effective inventory management prior to COVID-19 and inventory forecasting decisions and effective inventory management during the lockdown period. Thus, regardless of the COVID-19 pandemic, inventory managers in ACMs in South Africa (SA) should use inventory forecasting methods such as demand forecasting, economic order quantity and materials requirement planning. They should further consider using an inventory information sharing system and inventory replenishment procedure to manage inventory more effectively.