Effect of Strategic Inventory Management on Performance of Small-Scale Manufacturing Firms in Lagos State, Nigeria

Abstract

The aim of the study is to investigate the effect of Strategic Inventory Management on the Performance of Small-scale Manufacturing Firms. The study used primary data to obtained necessary information from the firms. The population size includes 31 Small-Scale manufacturing firms situated in Ikeja, Lagos State, Nigeria. A simple random technique was used to select 220 respondents from the departments of Production, Marketing and Administration.

Data on variables such as Inventory Management tools, Strategic decision policy and performance variables were sourced from the respondents with the questionnaire, and analyzed using descriptive and inferential statistics.

The study showed that Strategic Inventory Management influences better performance of the small scale manufacturing firm if appropriately used. Inventory management tools like the ABC system, Two-way bins, EOQ, Production Lot Size and Quantity discount Model should form the bedrock of their inventory management practices. The study concluded that inventory management facilities should be provided by small scale manufacturing firms to support their performance technically which will bring about improved performance.