Operations strategy is the value-adding process used by the company to guarantee that customers receive value through the conversion of resources into finished goods and services. Operations management procedures include quality control, supply chain management, inventory management, risk management, and information technology. The main objective of this study was to establish the influence of inventory management strategy on the performance of retail chains in the Nairobi Central Business District. The study was anchored on the systems theory. The study adopted a descriptive research design and the target population was 34 retail chains within the Nairobi CBD area. The sample population involved 80 managers who were in charge of the retail chains in Nairobi CBD. Self-administered structured questionnaires were used to collect primary data. Data was analyzed using descriptive and inferential statistics. The study found that inventory management strategy has a positive significant influence on the performance of retail chains in the Nairobi Central Business District. This is because an increase in a unit of inventory management strategy leads to an improvement of the performance of the retail chains. The study recommended that retail chains should implement inventory management practices that aim to reduce deadstock and minimize inventory holding costs. The study also recommended that organizations should utilize inventory forecasting techniques to accurately predict demand and adjust inventory levels accordingly. The study further recommended that retail chains should explore vendor-managed inventory (VMI) arrangements with key suppliers to maintain optimal stock levels. The study recommended that retail chains should regularly assess and update inventory turnover strategies to meet customer demand effectively.
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