THE EFFECT OF INVENTORY MANAGEMENT PRACTICES ON OPERATIONAL PERFORMANCE: A CASE OF WERABE TOWN FLOUR FACTORIES
Keywords:
Inventory Management, Quality Control, Operational Performance, DocumentationAbstract
The purpose of this study was to investigate the effect of inventory management practices on operational performance in the case of Werabe flour factories. The study used a mixed research design where descriptive and explanatory research methods and quantitative research approach were applied to collect the relevant data by using primary and secondary data collection methods used by the census survey method through a close-ended questionnaire, in which all operation areas, quality control, loading, and store employees were selected to determine targeted respondents Using the SPSS 21 version, the collected data was analyzed by the descriptive statistics that are mean and standard deviation, whereas inferential statistics are multiple linear regression and correlation were used to see the effect of measured variables on operational performance. The finding of this research revealed that operational performance was significantly influenced by inventory quality control, handling of inventory, record and documentation and planning of inventory-related factories with a P-value >0.05 and quality control was the most significant variable on operational performance, followed by inventory records and documentation was significant on operational performance and followed by inventory planning and the least significant variable on operational performance was handling of inventory. Based on the findings, the researcher recommends that the organizational manager’s better focus on handling of their inventories, planning their inventories and activities, providing on-the-job and off-the-job training for the employees, and better prepare warehouses for their inventories and focus by recording and documenting the inventory items well.
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