Inventory Management Practices and Organizational Performance of Paint Manufacturing Firms in Anambra State, Nigeria

Abstract

This study examined the relationship between inventory management practices and organizational performance of paint manufacturing firms in Anambra State, Nigeria. Specifically, the study examined the relationship between EOQ practices and cost reduction; ascertained the relationship between JIT inventory practices and operational efficiency; and determined the relationship between ABC inventory analysis and customer satisfaction of paint manufacturing firms in Anambra State, Nigeria. Three research questions and three null hypotheses were developed in line with the specific objectives. The study was anchored on the Economic Order Quantity Theory, the Theory of Constraints, and the Resource-Based View. A survey research design was adopted. The population comprised 512 employees drawn from four (4) paint manufacturing firms in Anambra State, selected on the basis of registration with the Manufacturers Association of Nigeria (MAN), a minimum of 15 years in operation, and a minimum staff strength of 50, with a sample size of 102 respondents determined using Borg and Gall's (1973) formula and drawn proportionately using a stratified random sampling technique. Data were collected using a structured five-point Likert-scale questionnaire, validated through expert review for content and construct validity, and tested for reliability using Cronbach's Alpha, which yielded a coefficient of 0.81. Out of 102 copies of questionnaire administered, 93 copies representing 91.2% were correctly completed and valid for analysis. Data were analyzed using the Pearson Product Moment Correlation Coefficient at a 0.01 level of significance with the aid of SPSS version 23. The findings revealed a strong positive and significant relationship between EOQ practices and cost reduction; a strong positive and significant relationship between JIT inventory practices and operational efficiency; and a strong positive and significant relationship between ABC inventory analysis and customer satisfaction. The study concluded that EOQ practices, JIT inventory practices, and ABC inventory analysis significantly enhance cost reduction, operational efficiency, and customer satisfaction among paint manufacturing firms in Anambra State, Nigeria. It was recommended that management of paint manufacturing firms should institutionalize EOQ-based ordering systems, strengthen JIT scheduling and supplier coordination, and adopt ABC classification for stock prioritization to sustain organizational performance.