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| Impact of Inventory Management on Firm Performance in Nigeria: Using Grass Roots Opinion |
Ugwu Ikechukwu Virginus Ph.D and Nwakoby, Nkiru Peace Ph.D
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Abstract:
The main objective of our study is to determine the impact of inventory management on firm performance in Nigeria- Using Grass Roots Opinion. Other specific objectives are to determine the impact of ABC model; Low, medium, high model; and Economic order quantity EOQ models on firm performance. Our methodology applied grass roots opinion (primary questionnaire) survey design with a focus on a purposefully sampled 10 firms with populations of 710 staff strength; while Taro Yamane formulae was used to arrive at 400 staff who formed our respondents. The method of analyses applied descriptive statistics; Pearson Correlation and OLS regression. The result shows that the Adjusted R-squared value of 0.879, which is 88% of the systematic variations in the dependent variable in the pooled firms, was jointly explained by the independent variables (ABC, LMH, and EOQ) on firm stock management. The F-statistic value of 429.250 with P-value of 0.0000 shows that the OLS pooled model on the overall is statistically significant @ 5% level. Other findings of the explanatory variables are: ABC; LMH; and EOQ inventory models have positive significant impact on firm performance in Nigeria. The study concludes that inventory management model techniques tested have positive significant impact on firm performance. This study is important to the manufacturing firms in Nigeria because it provides the guidelines to the management of firms on stock management models that minimizes stock waste and impact corporate performances.
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