Inventory Management and Operational Performance of Food and Beverages Manufacturing Companies in South-East, Nigeria

Abstract

The study investigated the relationship between inventory management and operational performance of food and beverages manufacturing companies in South-East, Nigeria. Specifically the study examined the relationship between inventory safety stock and production cycle time; relationship between inventory control and cost efficienc; automated inventory system and employee task quality on food and beverages manufacturing companies in South-East, Nigeria. The study was anchored on inventory management theory. Correlational research design was adopted in this study. Data were sourced from primary and secondary sources. The population of study comprised 2090 employees of food and beverages manufacturing companies in South East, Nigeria. The sample size consist 699 using statistical formula devised by Godden. Questionnaire was used for data collection. Face and content validity was adopted in this study. The reliability of instrument was established through the test- retest method and Cronbach Alpha. Simple percentage analysis was employed to answer the research questions. Pearson Product Moment Correlation Coefficient analysis was used in testing the hypotheses. It was discovered that inventory Safety stock had a significant positive relationship with production cycle time; Inventory control had a significant positive relationship with cost efficiency; there was no significant relationship between automated inventory system and employee task quality in food and beverages manufacturing companies in South-East, Nigeria. The study concluded that there is a positive significant relationship between inventory management and operational performance of Food and Beverages manufacturing companies in South-East, Nigeria. The study recommended among others, that management of food and beverages manufacturing companies should ensure that safety stock are sufficient to meet production requirements and operation demands at all times, and at the same time avoiding holding unnecessary surplus stocks that may increase holding costs and enhanced customer satisfaction.