methods are used to describe how the existing inventory management and control system functions. Population, Sample Size and Sampling Technique The population for this research is the management and staff of the warehouse, part sales, finance and General Service Department. The total population of the study is The sample This paper deals with the sensitivity analysis (SA) of inventory management models when uncertainty in the input parameters is given full consideration. We make use of Sobol’ function and variance decomposition method for determining the most influential parameters on the model output International Journal of Scientific and Research Publications, Volume 5, Issue 10, October 1 ISSN blogger.com An Assessment of the Effects of Inventory Management Procedures on Performance of Kengen Susan Wauna*, Dr. Joseph Obwogi** * Jomo Kenyatta University of Agriculture and Technology Mombasa Campus, P.O Box
Sample Research Paper on Inventory Management
Suleman Bawa 1George Effah Asamoah 2Ernest Kissi 3. Copyright © The Author s. This work is licensed under the Creative Commons Attribution International License CC BY. The study aims to investigate the impact of inventory management on firm performance of listed manufacturing firms in Ghana. The sample of this study included firm-year observations from 14 listed manufacturing firms in Ghana Stock Exchange GSE over a year period, from to Measures of firm performance which were profitability and operating cash flows were examined.
Regression equations stated in the form of return on assets and operating cash flow was used in analysing firm performance data. Pearson correlation and multiple regression analysis was also used as proxies in relatedness to effective inventory management. Keywords: Ghana Stock Exchange, Firm performance, Manufacturing firms, Inventory management, Profitability, Operating cash flow. Cite this paper: Suleman Bawa, George Effah Asamoah, Ernest Kissi, Impact of Inventory Management on Firm Performance: A Research papers on inventory management Study of Listed Manufacturing Firms in Ghana, International Journal of Finance and AccountingVol.
doi: Paper Information Paper Submission Journal Information About This Journal Editorial Board Current Issue Archive Author Guidelines Contact Us. International Journal of Finance and Accounting p-ISSN: e-ISSN: ; 7 4 : research papers on inventory management Abstract Reference Full-Text PDF Full-text HTML. Article Outline 1. Introduction 2.
Previous Studies 3. Theoretical Literature Review 4. Empirical Literature Review 5. Methodology 6. Data Analysis and Discussion 7. Interpretation of Findings 8.
Conclusions 9. Recommendations Limitations Appendices. Introduction The concept of inventory management in previous years has attracted attention from people in academia and industries Prempeh,; Fosu, ; Mensah, ; Mwanzi As more than half of the investments firms are into current assets and inventory constitute one of the most significant component, the quantity of inventory availability at the right time is vital Carter, ; Prempeh Because of the economic value of inventory, capital productivity is enhanced if inventory levels are effectively managed as inventories are idle resources of firms Prempeh, In an effort to fasten inventory management on firm performance, many decisions are being taken to provide a direction and strategy for competitiveness and productivity.
Empirical studies have had diverse findings conducted globally on inventory management. For instance, Prempeh reported that there is a significant research papers on inventory management relationship between inventory management and profitability.
Evidence from previous studies Luwumba, ; Appiah, ; Mwangi, research papers on inventory management, ; Bingilar, also supported the direct relationship between inventory management and profitability. In contrary, HornbrinckMensah and Sitienei and Memba studies showed a negative relationship.
However, almost all these studies fail to acknowledge the fact that inventory management also have an effect on firms operating cash flows, research papers on inventory management.
The study argue that effective inventory management will lead to profitability and significant operating cash flow. This is because the management of inventory is regarded as all the processes that goes into keeping the required level of inventory at the right time, place and quantity and include the controlling, coordinating, assembling, purchasing and how inventory is utilised for productivity Prempeh, Pandey maintains that these processes maximise the return on funds invested to get a positive return.
This is because according to Peterson and Joyce in relation to Pandeythe return on funds invested into a business must be able to maximise profit above investment made. Prempeh noted that return on investment is maximised by reducing inventory cost or current assets, and by optimizing profit margins of inventory. Thus, profit can only be maximised by minimising cost as much as possible whilst maintaining quality at all times since there is always high demand for sales price reduction Prempeh, However, in other to minimise cost and funds invested, inventory management tend to move by reducing inventory hold Drury, research papers on inventory management, To increase profitability and operating cash flow leading to firm performance, Peterson and Joyce noted that the direct contribution of inventory management is made possible by the following: i Less dependent on importation through producing inventory needed by a firm itself.
ii Establishing inventory control systems to minimise inventory cost and maximize profit margins. iii Proper implementation of control procedures and planning on the utilization of inventory and fixed assets turnover ratio. The need to understand the costs measures associated with inventory management to maximize profit remains unabated to the manufacturing industry in Ghana Prempeh, Previous studies in their quest to research into the impact of inventory management on firm performance and profit maximizing measures used models such as six sigma Dick et al.
Hence, most studies on inventory management have research papers on inventory management been done in other countries and very few is available in Ghana. As such, the few studies tend to concentrate on only one or few manufacturing companies Prempeh, ; Fosu, Thus, the motivation of the study on the impact of inventory management on firm performance of listed manufacturing firms in Ghana. Following empirical studies research papers on inventory management especially Mensah, ; Nwangi, research papers on inventory management, ; and Prempeh,the effects of inventory management on firm performance cannot be over looked.
Given the complexity nature of inventory management, competitiveness, margin of benefits, carrying and holding costs distress and investment opportunities that can lead to firm growth, inventory management is vital to the manufacturing industry. Previous Studies Inventory refers to stockpiles of tangible products raw materials, supplies, work-in-progress and finished goods kept by a firm for running of the business for manufacturing products for trade or reuse Tersine, ; Pandey, ; Pycraft, research papers on inventory management, ; Chase et al.
Pandey defined work-in-progress as semi-finished manufacturing products that are at various stages of completion in a production process. Finished goods are products that have passed the various stages of production and awaiting distribution Kothari, Inventory are a vital part of the production process because they link products to marketing, consumption and customer demand Pandey, In relation to the manufacturing industry, this study defines inventory as stock that a company keeps for manufacturing its products for usage and sale.
An inventory system refers to a set of policies and controls that a firm put in place to monitor and determine inventory levels, volume of inventory and replenishment that should be maintained Chase et al, research papers on inventory management. Inventory management is the planning, coordinating, controlling and organization of all inventory levels of raw materials, work-in-progress and finished research papers on inventory management Kotler, Jessop added, stating inventory management as the art and science of maintaining stock levels set by management.
The major objective of inventory management is to inform managers of how much and when to re-order and the appropriate safety stock levels in minimizing stock outs Keth et al. Inventory management is necessary because sufficient amount of inventory is needed to minimise the rate of stock outs in a firm.
In setting inventory level, firms should consider the costs such as ordering costs, holding cost and stock-out costs as revealed by Drurry Ordering costs relates to costs incurred in placing and receiving an order for the supply of inventory. Ordering cost include; purchasing department personnel expense, communication and paper work, inspection, insurance and other related costs Gourdin, Holding costs are costs incurred in carrying inventory for current and future demand.
These costs include taxes, theft, interest on funds financing, insurance, handling, opportunity cost and obsolescence Lwiki, These costs are positively related to changes in inventory level Gourdin, Stock-out cost results when a firm is unable to meet current internal and external inventory demands.
Firms could lose customers to competitors during stock out. However, this can be prevented or reduced with effective inventory management Gourdin, Theoretical Literature Review Inventory and its management as defined above are related to various models as they form the basis of an effective mechanisms that guide managers to institute effective inventory management mechanisms leading to significant firm performances.
When firms in Ghana manufacturing industry adopts and focus comprehensively on the following models of inventory management approaches, it will enhance cost minimization. This is because they form the basis of how inventory management can improve performance. This research papers on inventory management because, it will be unreasonable to give equal attention to inventory which increase costs and reduce profit Pandey, Just in Time Model JIT : This strategy is aimed at reducing associated inventory cost to improve financial performances Shin et al.
JIT is a system developed to eliminate non-valued-added activities Drury, because it helps to produce items of high quality at required time, improvements to strategies and fixing immediate setbacks Lucey, ; Obiri-Yeboah et al. Under this system, materials are ordered when required, hence, leading to waste reduction, research papers on inventory management, value maximisation and lead to productivity Kootanaee et al.
Economic Order Quantity EOQ : It is used to determine and control the optimal level of inventory. Haris principle stipulates that EOQ is the level that minimises holding and ordering cost Adeyemi and Salami, ; Ziukov, ; Olufemi et al. EOQ is the level at which re-order is made Arora and Ceccagnoli, and quantities that minimises ordering of holding and re-order costs balance Monks, ; Lucey, research papers on inventory management, ; Dervitsiotis, ; Scheroeder, This is because as ordering costs decline, holding costs rises and converge at a minimum point of ordering cost curve and carrying cost line thereby regulating inventory purchase and storage for even production flow Lwiki et al.
EOQ is shown graphically in figure 2. EOQ Model Source: Adapted from Lwiki et al. Empirical Literature Review Firm performances have received numerous attempt by scholars and researchers in the field of business but evidence-based literature on inventory management on firm performance in listed manufacturing firms in Ghana is rare.
With diverse views of concentration of study and explanatory variables, this research is geared toward related literatures and their immediate effects and relevance. Prior reviews of literature on inventory management on firm performance Prempeh, ; Akoto et al. Prempehfor instance, findings revealed a positive relationship which conflict with the findings of Fosu whose study revealed a negative relationship.
In their studies, Prempeh used four listed manufacturing companies in Ghana Stock Exchange whiles Fosu used one Brewery company, Guinness Brewery Ltd. However, this study used fourteen listed manufacturing firms in Ghana Stock exchange.
Secondly, it is not clear whether management efficiency profitabilitycash flow, firm size and growth levels determines firm performance Mwangi and Nyambura,; Fosu, and Prempeh, For instance, Prempeh used profitability to determine firm performance whilst Mwangi and Nyamburaused the variables management efficiency profitability, cash flow, research papers on inventory management, firm size and growth levels respectively and arrived at a similar finding of a significant positive relationship to firm performance.
However, Fosu findings using only profitability revealed a negative relationship. To date, the magnitude of the significance relationship between inventory management and firm performance of manufacturing firms is unknown as they vary across studies especially in Ghana. The main reason for difference reported effects can loosely be attributed to population of study and variables used.
This is because the larger the population the higher the standard deviation and the probability of giving a fairer representation of the study sample. As such, there are many variables that contribute to enhance firm performance, research papers on inventory management. For instance, whiles some studies may use only profitability or operating cash flow to justify firm performance, other studies may consider not only both but other factors inclusively as well.
Hence the direction of relationship has greatly been disagreed upon by researchers as seen from above. The current study sought to find evidence and to investigate whether there is a relationship between inventory management and firm performance of manufacturing firms in Ghana.
A study of inventory management system case study.
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International Journal of Scientific and Research Publications, Volume 5, Issue 10, October 1 ISSN blogger.com An Assessment of the Effects of Inventory Management Procedures on Performance of Kengen Susan Wauna*, Dr. Joseph Obwogi** * Jomo Kenyatta University of Agriculture and Technology Mombasa Campus, P.O Box Jul 04, · Despite numerous research on inventory management on firm performance, and manufacturing firm’s contribution to the Ghanaian economy, its contextual impact still need much investigation because of lack of clarity and divergent findings. The study aims to investigate the impact of inventory management on firm performance of listed manufacturing firms in Ghana Oct 05, · Research on inventory management can be traced back to the s and emerged in the s in Western countries. The research on inventory management in China started in the s, and due to the rapid development of China’s economy, a hundred schools of thought have emerged in this area in the 21st century
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