The Effect of Inventory Management on Customer Satisfaction in the Case of Ethio-Nippon Technical Company S.C
No Thumbnail Available
Date
2021-09
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Addis Ababa University
Abstract
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
Description
Keywords
Inventory management, customer satisfactions, Process auditing