Inventory Management Performance Research Articles

Moderating Impact of Innovation Practices on Logistics Practices of 3PLs Service Provider in Malaysia Context

Innovation consists of making collaborative efforts in term of relationship with other organization and institutions to attain competitive advantage by means of innovative services and products, as well as different relationships with their shareholders and stakeholders. Logistics services includes warehousing, freight, transportation, product return and repairs, inventory management, packaging, order entry/order processing. All these can be managed internally. But the challenges of coping with manufacturing and handling logistics which is not the core of the organization business model result to the outsourcing for logistics service providers, such as third-party logistics service providers. This paper aimed at investigating the moderating effect of innovation on logistics practices, particularly, warehousing, transport and packaging services, of 3PLs service provider in Malaysia manufacturing sector. Quantitative method of research was adopted, and questionnaire was distributed electronically. It was analysed using SPSS and the result indicated that innovation of green logistics moderates the relationship between inventory management and operational performance, packaging and service performance but does not moderate relationship between transportation and service performance.

Inventory Management and Financial Performance of Private Hospitals: A Positivist Evidence from Western Uganda

Purpose: This study set out to empirically examine the relationship between inventory management and private hospitals' financial performance in Western Uganda.
 Methodology: The study adopted a positivist approach and a cross-sectional research design to collect data from 32 Private hospitals in Western Uganda. The study used a closed-ended questionnaire to collect data and simple linear regression for data analysis.
 Findings: Results revealed inventory management as a significant predictor of private hospitals' financial performance in Western Uganda. The study recommended that private hospitals adopt robust and scientific inventory management systems and models that aim to optimise stock levels and minimise costs if they are to achieve substantial financial performance.
 Contribution to Practice and Policy: The study has deep-rooted the urgent need for private hospitals to adopt more stringent inventory management systems that will ensure adequate stock levels, minimise costs and enhance superior financial performance. However, the study was positivistic, thus subject to methods bias that could have affected the results' validity.

ANALISIS KINERJA MANAJEMEN PERSEDIAAN PRODUK UD. SINAR JAYA KARANGASEM

Inventory plays an important role in the company's operational activities, it is necessary to do inventory management in order to minimize losses caused by the large inventory costs. This research is conducted at UD. Sinar Jaya, aims to determine the performance of product inventory management and whether it’s efficient or not. Research data are obtained through interviews and observations. Descriptive analysis technique is used, which describes systematically several stages starting with ABC analysis, EOQ calculation, safety stock calculation, re-order point calculation, maximum inventory calculation, inventory turnover calculation, and comparing the total inventory cost between the method applied by the company with the EOQ method. Results show that product inventory management performance is not efficient. This is indicated by the total cost of inventory incurred using the company method in 2019 amounting to IDR 43,058,137. The product inventory management system that should be carried out is to classify products with ABC analysis, then determine EOQ of 1,208 units, determine safety stock of 518 units, and determine the re-order point of 1,099 units for each classification at unit A, so that the total cost of inventory incurred is only IDR 32,716,517 or 24.02 % lower than the actual application of company methods.
 Keywords: ABC analysis, EOQ, inventory costs

A Study on Inventory Management Efficiency to measure Inventory Management Performance

본 연구의 목적은 우연적 변동요인이 제거된 새로운 방식의 재고관리성과 지표를 개발하고자 하는 것이다. 이를 위해 우리나라 소매업 및 관련 업종에 속하는 40개 기업의 2000~2018년 자료를 선택하여 분석을 실시하였다. 구체적으로 생산경제(Production Economy)이론의 기술적 효율성(Technical Efficiency) 개념을 차용하여 재고관리효율성(Inventory Management Efficiency)이라는 새로운 성과지표를 정의하였고, Gaur 등(2005)에서 제시된 재고회전율을 결정하는 주요 요인과 재고회전율과의 관계가 승법적(Multiplicative) 형태로 표현된 재고회전율함수를 설정하였다. 그리고 재고관리효율성을 적절히 정의하기 위해 요구되는 주요 조건을 재고회전율함수가 만족하고 있는지 면밀히 검토하였고, 재고관리효율성의 추정을 위해 우연적 변동과 재고관리효율성을 구분할 수 있는 모수적 방법으로 확률변경분석(Stochastic Frontier Analysis)을 적용하였다. 또한 재고관리효율성의 추정을 위해 설정된 연구모형의 타당성 여부를 살펴보았고 재고관리효율성항의 통계적 존재 여부를 확인하였다. 본 연구의 주요 결과는 다음과 같다. 첫째, 본 연구에서 설정된 재고회전율함수는 ‘명확히 정의된’ 함수이며 재고관리효율성은 알맞게 정의된 재고관리성과 지표이다. 둘째, 재고관리효율성은 통계적으로 존재한다고 볼 수 있다. 셋째, 최대 재고회전율 수준과 비교했을 때 분석대상 기업들의 실제 재고회전율 수준은 평균적으로 약 64.3% 수준에서 결정되고 있다. 한편 본 연구는 기술적 효율성의 개념을 차용한 새로운 지표를 제안하였다는 점에서 학술적 시사점이 있다고 평가할 수 있다. 또한 본 연구에서 제안된 재고관리효율성 및 방법론을 적용함으로 실무관리자들은 경쟁기업과 비교하여 평가될 수 있는 기업의 상대적 재고관리성과 또는 능력을 분석할 수 있으며 재고관리 개선을 위해 참고할 만한 타 기업을 찾아낼 수도 있다. 이러한 측면이 본 연구의 실무적 시사점이라고 할 수 있다.

Inventory management performance for family planning, maternal and child health medicines in public health facilities of West Wollega zone, Ethiopia

BackgroundInventory management is the heart of the supply system in improving availability of medicines, reducing the cost, and improving patient care quality. However, in the government facilities’ supply system, inventory management is poor. So, the purpose of this research is to assess inventory management performance for family planning, maternal and child health medicines in public health facilities of West Wollega zone, Oromia region, Ethiopia.MethodFacility-based descriptive cross-sectional quantitative study was conducted using checklist, structured and semi-structured questionnaire, and triangulated with qualitative method. Quantitative data were coded and analyzed using SPSS Version 20 and Microsoft excel spreadsheet. Qualitative data were analyzed manually, using thematic analysis technique. Different indicators were used to measure variables.ResultsAmong 23 health facilities assessed, availability of family planning/maternal and child health medicines ranged from 0 to 100%. Average availability of medicines was 14 (61.30%) with mean stock-out duration of 70.71 days. Bin cards were available for 559 (78.40%) of medicines, and 374 (52.45%) bin cards were accurate. Report submission rate was 116 (84.06%), with 47 (40.52%) report and resupply forms reported on time, 73 (62.93%) of them were complete and 69 (59.48%) were accurate. Supplier-related problem, lack of human resource, administrative problem, and lack of computer infrastructure were inventory management challenges identified.ConclusionInventory management performance for Family planning/maternal and child health medicines was poor as indicated by low availability, high stock-out duration, and poor LMIS performance. Efforts should be undertaken by concerned bodies to improve it.

Synergic Effect of Reworking for Imperfect Quality Items with the Integration of Multi-Period Delay-in-Payment and Partial Backordering in Global Supply Chains

Abstract In intercontinental trade and economics goods are bought from a global supplier. On occasion, the expected lot may include a fraction of defective items. These imperfect items still have worth and can be sold to customers after repair. It is cost-effective and sustainable to rework such items in nearby repair workshops rather than return them. The reworked items can be returned from the workshop to the buyer when shortages are equal to the quantity of imperfect items. In the meantime, the supplier correspondingly deals a multi-period delay-in-payments strategy with purchaser. The entire profit has been maximized with paybacks for interim financing. This study aims to develop a synergic inventory model to get the most profit by making an allowance for reworking, multi-period delay-in-payments policy, and shortages. The findings of the proposed model augment inventory management performance by monitoring cycle time as well as fraction of phase with optimistic inventory for a supply chain. The results demonstrate that profit is smaller if the permitted period given by supplier to buyer is equal to or greater than the cycle time, and profit is greater if the permitted period is smaller than the cycle time. The algebraic method is engaged to make a closed system optimum solution. The mathematical experiment of this study is constructed to provide management insights and tangible practices.

Inventory management performance for laboratory commodities in public hospitals of Jimma zone, Southwest Ethiopia

BackgroundMaintaining an efficient and effective inventory management system ensures a reliable supply of laboratory commodities. The aim of this study was, therefore, to assess the performance of inventory management for laboratory commodities in public hospitals in the Jimma zone.MethodsA facility-based cross-sectional descriptive study, accompanied by a qualitative method, was conducted in seven public hospitals between April 30 and May 29, 2019. We collected data through document reviews (225 bin-cards), physical observation, self-administered questionnaires, and in-depth interviews. The quantitative data were analyzed using Excel spreadsheets and SPSS version 24. Fifteen key informants of different backgrounds took part in the qualitative study. The data were then analyzed using thematic analysis techniques.ResultsAll the public hospitals in the zone were included in the study, making a response rate of 100%. Of the total estimated bin-cards, 225 (69.9%) of them held along with the items, and only 30.4% of them filled accurately. In four of the hospitals, pharmacists determined how much to order. Five of the hospitals used average monthly consumption data to calculate purchase quantity. Over the past 6 months, four of the hospitals had placed at least one or two emergency orders. The wastage rate of the commodities in the hospitals was 27.2% and resulted in a loss of about 10,248.5 US dollars. The hospitals had met 70.6% of the criteria for proper storage conditions. Budget constraints, absence of prompt administrative support, lack of staff commitment, and frequent shortages of commodities on the part of suppliers were major bottlenecks of inventory management.ConclusionsThe hospitals had weak inventory management practices, showed by inaccurate records, stock-outs (frequent emergency orders), a high wastage rate compared to national baseline statistics, and the storage conditions below the standard.

Inventory management, managerial competence and financial performance of small businesses

PurposeThe purpose of this study is twofold (1) to establish the relationship between inventory management, managerial competence and financial performance and (2) to test whether inventory management mediates the relationship between managerial competence and financial performance.Design/methodology/approachWe employed cross-sectional and correlational research designs. A questionnaire survey of 304 small businesses in Uganda was utilized. Hypotheses were tested using a bootstrap analysis technique with the aid of Analysis of Moments Structures (AMOS) software.FindingsResults indicate that inventory management and managerial competence are significantly associated with financial performance of small businesses. Further, inventory management partially mediates the relationship between managerial competence and financial performance.Originality/valueRather than focusing on only the direct effects of managerial competence and inventory management, moreover independently, the indirect effect of inventory management is tested. Further, the behavioral perspective of inventory management, as opposed to financial ratios, is utilized.

Strategic Inventory Management Practices and the Performance of Supermarkets in Nairobi County, Kenya

This study establishes the influence of strategic inventory management practices on the performance of supermarkets in Nairobi County, Kenya. Specifically, the study examined the effect of vendor managed inventory, lean-inventory system, e-inventory management system and activity-based costing system on performance of supermarkets in Nairobi County. The study was grounded on the resource based view theory. A descriptive cross-sectional survey research design was employed and stratified random sampling approach used to ensure representativeness of the study population. From the target population of 158 supermarkets a sample size of 113 supermarkets was picked. A structured questionnaire was used to collect primary data and was administered to the heads of supply chain management in the respective firms. Descriptive statistics and multiple regression equation were applied to analyse data with the help of Statistical Package for Social Sciences (version 21.0). The study established a positive significant relationship between strategic inventory management practices and performance of supermarkets. Explicitly, e-inventory management system and activity-based costing system registered the highest influence on performance of supermarkets while lean inventory management systems had no significant influence on performance. The study concludes that strategic inventory management practices significantly improve performance of supermarkets. Consequently, the study recommends that management of supermarkets in the County should implement e-inventory management systems and practice activity-based costing in order to improve their performance through reduction of operation costs and improved inventory control, the management of supermarkets should institutionalize employment of cost accountants as part of supply chain management team for effective application of activity based costing in inventory management. and the government should give tax rebate on IT infrastructure related to e-inventory management systems to encourage up take of the systems by firm as a way of boosting their performance and growth. Further the study suggests that future research should focus on undertaking a comparable study incorporating a wider spatial and population scope as well as give attention to constructs affecting the effectiveness of strategic inventory management practices once they are implemented by supermarkets in order to obtain a comprehensive understanding of the subject matter and contribute towards the existing body of knowledge in this area.

Lean Inventory Management Systems and Performance of Supermarkets in Nairobi County, Kenya

Lean inventory management systems (LIMS) is postulated to have the capability of enhancing performance of firms through minimization of overheads associated with inventory management in firms where inventory forms a significant portion of operational costs. Therefore in this study LIMS(s); just-in-time, cross-docking, drop shipping and backordering were theorised to have an impact on the performance of supermarkets in Nairobi County, Kenya. The study used of a descriptive research design and surveyed 113 supermarkets randomly sampled from 158 supermarkets in Nairobi City County. A structured questionnaire was used as the primary data collection intrument. The questionnaire was administered through drop and pick later mode to the respective supply chain managers of the supermarkets. The instrument was piloted for validity, reliability and to identify potential gaps. Multiple regression model was applied to test the study hypothesised model and the statistical package for social science (version 21.0) facilitated the tests. The tests established a positive significant link between lean inventory management systems and performance of supermarkets. This implies that an increase in use of lean inventory management systems in the operations of supermarkets, increases their performance positively. The study further established that just in time system had the highest influence on supermarkets performance followed by backordering, drop picking and cross-docking respectively. The study concludes that lean inventory management systems such as just-in-time, cross-docking, drop shipping and backordering improve supermarket performance. The study recommends that retail supermarket owners/managers should implement an inventory policy in support of lean inventory management practices, define stock keeping units to better understand and forecast demand. Secondly, supermarket owners should make profound cultural changes to re-enforce a lean transformation and develop a performance culture focusing continuous improvement where staff are always actively discussing and implementing improvements through either formal or informal. Finally supermarket owners/managers need to close the gap by hiring a few people with lean expertise and experience from outside the retail sector to seed the transformation and build new internal capabilities in lean inventory management practices in managing their inventory.

EFFECT OF THE CHALLENGES FACING USE OF INFORMATION AND COMMUNICATIONS TECHNOLOGY ON INVENTORY MANAGEMENT AMONGST BREWERIES IN NIGERIA

Information and communications technology (ICT) in recent times has become a viable strategic policy option adopted by many businesses in order to compete favorably in a competitive and dynamic ICT driven market. This strategic move by business organizations is being hindered by some challenges which has invariably reduced the benefits accruable from ICT deployment for business operations especially in the inventory management. Primary data formed the methodology of the study. Descriptive and inferential statistics were used to analyze data obtained through the administration of structured questionnaire. It was established during the field survey that challenges facing the use of ICT had impacted negatively on the performance of inventory management in the Nigerian brewery industry during the period under study. It was also revealed that the cost of software was a major challenge in the industry and conclude that the identified challenges had significant effect on customers' satisfaction of the firms in the Nigerian brewery industry. It is recommended that management of firms in the Nigerian brewery industry should collaborate with software developers in Nigerian to develop a software that will be a replica of ERP but should be efficient, effective and affordable for inventory management and other operations in the industry.
 Odesola, O. T. | Registrar's Office, Obafemi Awolowo University, Ile-Ife, Nigeria

Impact of Inventory Management Performance on Technical Efficiency of Korean Steel Companies

Impact of Inventory Management Performance on Technical Efficiency of Korean Steel Companies

Improving the Performance of Procurement and Inventory Management of Hospital Materials (Case of a Taiwanese Medical Centre)

Within healthcare organization, the main goal of material procurement and inventory management is to reduce the cost associated with supplies without sacrificing the quality of patient care. In general, there are two ways to maintain supply level, i.e., joint procurement and direct purchase from the point-of-use location. For joint procurement, the demand of the associated point-of-use will place order to central warehouse. The other way is the order is directly place to the supplier by the individual department. The focus of this study is to examine the current procurement and inventory management and improve the inventory policies for central storeroom and induvial department. To maintain the service by setting new order policies. In this study, we define a performance indicator, supply-demand ratio to measure the improvement of the operation of procurement and inventory management. With new policy, holding cost and idle stock, and usage of space can be reduced meanwhile it can maintain its service level.

Inventory Management and Financial Performance of Small Scale Apicultural Enterprises in Cameroon: The Case of Oku Honey Cooperative Society Limited

This study examines inventory management and financial performance of Small Scale Apicultural Enterprises in Cameroon, the case of Oku Honey Cooperative Society Limited (OHCSL). The independent variable (Inventory management) proxy by raw materials inventory, work-in-progress inventory, finished products inventory, and packaging material inventory was regressed against dependent variable (financial performance) proxy by gross profit margin. Data used in this study cover the period 1988-2017. The primary data was collected using interviews, structured and semi- structured questionnaires administered to the management staff of the organization. Using magazines, internship reports and annual reports of the enterprise, secondary data was collected. Using multiple regression analysis, the study established that a positive relationship exist between the independent (inventory management) and dependent variables (financial performance) at OHCSL. However, it was uncovered that holding raw material inventory contributed minimal on the financial performance of OHCSL. This was attributed to the fact that honey is processed within 24hours postharvest and hence the cooperative avoids holding raw material inventory. Consequently, the study recommended improvement in inventory management practices including improving staff capacity at the cooperative.

Inventory Management and Operational Performance of Manufacturing Firms in South-East Nigeria

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, just in time approach, materials requirement planning and strategic supplier partnership and operational performance of quoted manufacturing firms in the south-east region, Nigeria. The study recommends among others that, manufacturing firms in south-east Nigeria should adopt inventory practices such as strategic supplier partnership, just-in-time approach, materials requirement planning and inventory cost control due to the significant effect these practices have on operational performance.

Inventory Management Practices and Organization Performance of Steel Industries in Nairobi County, Kenya

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.

The Role of Inventory Management on Financial Performance in Some Selected Manufacturing Companies in Mogadishu

In this study, the research team studied the role of inventory management on the financial performance in some selected manufacturing companies in Mogadishu with the major objective of the study is to determine the inventory management practices used in manufacturing firms and to investigate the relationship between inventory management and financial performance in manufacturing firms. The research team selected 72 respondents with the use of questionnaire as instrument and data was analyzed using both descriptive and correlation statistics of mean and frequency (percentage) for SPSS. After gathering and analyzing data, the study found that there is significant positive relationship between the inventory management and financial performance where r=0.683.

EFFECT OF THE CHALLENGES FACING USE OF INFORMATION AND COMMUNICATIONS TECHNOLOGY IN INVENTORY MANAGEMENT AMONGST BREWERIES IN NIGERIA

Information and communications technology (ICT) in recent times has become a viable strategic policy option adopted by many businesses in order to compete favourably in a competitive and dynamic ICT driven market. This strategic move by business organizations is being hindered by some challenges which has invariably reduced the benefits accruable from ICT deployment for business operations especially in the inventory management. Primary data formed the methodology of the study. Descriptive and inferential statistics were used to analyze data obtained through the administration of structured questionnaire. It was established during the field survey that challenges facing the use of ICT had impacted negatively on the performance of inventory management in the Nigerian brewery industry during the period under study. It was also revealed that the cost of software was a major challenge in the industry and conclude that the identified challenges had significant effect on customers' satisfaction of the firms in the Nigerian brewery industry. It is recommended that management of firms in the Nigerian brewery industry should collaborate with software developers in Nigerian to develop a software that will be a replica of ERP but should be efficient, effective and affordable for inventory management and other operations in the industry.

Sustainable Inventory Management for Environmental Impact through Partial Backordering and Multi-Trade-Credit-Period

Incorporation of sustainable management for the rework of defective items brings long lasting benefits. In global business, there are situations when the products are procured from a global supplier. There are chances that the received lot may contain a fraction of imperfect products. These imperfect products are still valuable and can be repairable to save the environment. It is sustainable to repair imperfect items in a local repair store as compared to sending it back to the supplier. The cost of carbon emissions is also incorporated in the function to incorporate the environmental impact on total profit. Meanwhile, the supplier also offers a multi-trade-credit-period to the buyer. The developed model is sustainable and reduces the environmental impact as well as benefits for interim financing. This paper has an objective to maximize the total profit by developing a synergic economic order quantity model by considering multi-trade-credit policy, rework, and shortages simultaneously. This model can help in making decisions to enhance the performance of sustainable inventory management by controlling the cycle time and a fraction of time for a global supply chain. A non-derivative approach is employed to develop a closed-form optimal result. The numerical illustration with sensitivity analysis is also drawn to provide managerial insights into real practices.

Investigating the impact of hard total quality management practices on operational performance in manufacturing organizations

PurposeThe purpose of this paper is to investigate the impact of hard total quality management (TQM) practices on operational performance dimensions in manufacturing organizations.Design/methodology/approachThe study was designed in the Jordanian manufacturing sector. Organizations that are familiar with hard TQM practices specifically that had already implemented ISO 9001 certificate were randomly surveyed through structured questionnaire, yielded a sample of 40 responding organizations. Principal component factor analysis was used to analyze hard TQM practices implementation and organizations operational performance dimensions. As a result, specific hard TQM practices and operational performance dimensions were extracted. The hard TQM practices that significantly influence operational performance dimensions were tested using simple and multiple linear regression analysis.FindingsThe research findings showed that hard TQM practices in manufacturing sector include; continuous improvement, statistical process control (SPC), process management and quality tools and techniques. Meanwhile, operational performance dimensions include; quality and inventory management performance. Also, the findings showed that continuous improvement and SPC practices play a major role in obtaining the desired results of operational performance.Research limitations/implicationsThree limitations can be identified in this research, using subjective measures of TQM practices and operational performance, low response rate and using a sample of organizations from various industries. This paper can help Jordanian manufacturing organizations to foster proper practices and make the right decisions related to operational performance.Originality/valueThis study describes a reliable hard TQM model that can be used by manufacturing organizations to improve their operational performance. Also, the results of this study contribute to prior literature and recommend some best practices for manufacturing organizations.