Abstract:
Purpose- The purpose of this study was to find out the impact inventory management
system in letail stoies over the satisfaction level of customers.
Methodology/Approach- The data for study was collected by using likert scale
questionnaire filled by 300 employees performing different functions related to inventory
management of Hyperstar Karachi. Relationship between variables regarding performance
of inventory management system and customer satisfaction was determined. Variables
used for fonning opinion about inventory management system were accuracy of inventory
records, accuracy of demand infonnation, information sharing with suppliers, effective
replenishment process and effective reordering and delivery of inventory.
Findings- The analysis of relationship between different variables of inventory
management system and customer satisfaction showed that there is a strong positive
relationship between the perfonnance of inventory management system and customer
satisfaction. If the inventory is managed by the use of modem technologies and methods to
improve efficiency and effectiveness of the processes involved, it directly improves the
level of customer satisfaction.
Practical implications- The results of this study can help the retail stores in improving
their level of customer satisfaction by introducing process improvements in their inventory
management system. When the customer satisfaction level improves, customers gets
satisfied and visits the store regularly which increases the sales of retail stores.
Furthermore if customers are happy with the availability of products in a particular retail
store, they will tell their friends/family about this which increases the potential customers
of that store. Ultimately, the customer base and loyalty of customers increases which in
return increases the sales and profitability of the stoie.
