The Effect of Inventory Management on Customer Satisfaction in the Case of Ethio-Nippon Technical Company S.C

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Addis Ababa University


The general objective of the study is to examine the influence of inventory management practices on Customer Satisfaction of Ethio-Nippon Technical Company S.C in Ethiopia. Regarding the study methodology, the study used explanatory research design. Data was collected from employees of Ethio-Nippon Technical Company S.C using questionnaires. The data collected was then summarized by descriptive and inferential statistics using Statistical Package for the Social Sciences (SPSS) version 26 software. Findings of the study shows that there is a poor Inventory management practice in the company. Majority of the respondents disagree in the availability of good service and product delivery system in the company to fulfill the customer satisfaction. With this regard,the descriptive statistics result for the variables examined in the study, namely, Inventory Control practice, Process Auditing, Inventory Investment Practice, Warehouse Management Practice and the overall Customer Satisfaction show a subordinate level that is indicated by the lower average mean of less than 2.50 which is subordinate level of inventory management and provision. The Multiple linear Regression analysis result regarding the effect of Aspect of Inventory Control on Customer Satisfaction show a significant and positive effect on customer satisfaction (B =0.642, p < .05). . In addition, the Aspect of Process Auditing show a significant and positive effect on Customer Satisfaction (B =0.193, p < .05). Finally, the Aspect of warehouse management influence on Customer Satisfaction is positive and significant (B =0.091, p< .05).However, multiple linear regression Analysis result regarding the Aspect of Inventory Investment has a nonsignificant effect on Customer Satisfaction (B =-0.072, p > .05). The Study concluded that the company has weak inventory management system and because of this it was not good at delivery product and service on time and this led to increase customer complaint in the company time to time. Therefore, the study recommends that Ethio-Nippon Technical Company S.C should enhance inventory management practices ; process auditing,inventory control and warehouse management to enhance efficiency in product and service delivery



Inventory management, customer satisfactions, Process auditing