Pages: (1-24 )
Abstract
Operational performance issues such as production inefficiencies, operational inflexibility, inadequate product quality control measures, and delays in meeting delivery deadlines frequently plague fastmoving consumer goods manufacturing companies, which are suggestively due to inadequate inventory management practices of automated inventory control, inventory shrinkage, just in time inventory and vendor managed inventory. However, most of the existing research focused more on developed countries rather than developing countries such as Nigeria. Hence, this study examined inventory management practices and operational performance of selected fast moving consumer goods manufacturing companies in Ogun state, Nigeria. Survey research design was adopted for this study. The population comprised 693 top, middle and low-level management staff of five selected fast-moving consumer goods companies in Ogun State, Nigeria. A sample size of 321 was determined using Cochran formula. Stratified sampling technique was adopted in selecting respondents. A structured and validated questionnaire was utilized for data collection with Cronbach’s alpha reliability coefficients for the constructs ranged from 0.81 to 0.99. The response rate was 93.5%. Data were analyzed using the descriptive and inferential (Multiple Regression) statistics at a significant level of 5%. Findings revealed that inventory management practices have positive and statistically significant effect on the operational performance (Adj.R2= 0.066, F(4, 299) = 6.258, p<0.05) of the selected fast-moving consumer goods manufacturing companies in Ogun state, Nigeria. Inventory management practices therefore, improved the operational performance of the selected fast-moving consumer goods manufacturing companies in Ogun state, Nigeria. The study recommended that these manufacturing companies, should prioritize the strategic implementation of robust inventory management practices.
Keywords: Automated inventory control, Inventory flexibility, Operational performance, Product quality, management practices, On-time delivery, Operational Vendor managed inventory,