The Effect of Inventory Management on Supply Chain Performance: A Case Study of Servis Shoes

Abstract

Inventory Management is necessary for clear understanding of the supply chain performance in an organization. Inventory Management is helpful in making the supply chain process efficient and effective. The aim of this research was to find out the effect of inventory management on supply chain performance. The study focused on finding the positive or negative effect of inventory management on supply chain performance. Inventory management of the fashion industry is crucial as to the needs of the customers. This ever growing fashion industry involves shoe industry as well. The consistent demand from the customers and the changing requirements makes it important for this industry to have a well-developed inventory management system. This is the reason why the research was conducted in shoe industry and was further focused on Servis Shoes of Service Sales Corporation. The methodology used for carrying out the research was quantitative in nature. The study involved data collection from inventory managers and employees of the Servis Shoes. Literature review was conducted prior to research and linkages between the variables were established. For data collection, closed ended questionnaires based on Likert Scale were distributed to the inventory managers and employees. The results indicated that items of the variables were valid and there does exist positive relationship between inventory management and supply chain performance. The study can further form the basis of conducting research in other industries or sectors of Pakistan.