The Impact of Inventory Management Practices on the Organizational Performance

Abstract

The thesis investigates the impact of different inventory management practices (Just-in-time (JIT), Economic Order Quantity (EOQ), Vendor Managed Inventory (VMI), and ABC Analysis) on the performance of the organization to enhance its organization’s efficiency and effectiveness. Four independent variables (Just-in-Time JIT, Economic Order Quantity EOQ, Vendor Managed Inventory VMI, ABC Analysis) were taken and their impact on a single dependent variable (Organizational Performance OP) was kept under analysis. To study the impact, on the Aviation industries of Pakistan were targeted to collect data. To analyze the impact, a defined area of study was taken. The quantitative research method is used; as primary data is collected through an adaptive structured questionnaire based on the 5-Likert scale. The sampling size of this study was 117 responses, which were collected from different professionals having expertise in the Supply Chain area or in inventory management. The collected responses were imported into the IBM SPSS Software to run multiple statistical tests like (Descriptive frequencies of demographics and variables, Regression Analysis, Correlation Analysis, and Reliability tests). the results show positive results towards the variable and the reliability were enriched. The conclusion and recommendation are also explained based on the analysis.