The Effect of Inventory Management Practices on Corporates Operational Performance: The case of ethio-telecom
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Date
2022-06
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Addis Ababa University
Abstract
The purpose of this research is to examine the effect of inventory management practices on organizational performance at ethio telecom. For this particular study inventory management practices are represented by effective inventory planning, inventory controlling, inventory recording and strategic supplier partnership. Using Yamane (1973) formula 255 samples is determined from 687 total population. Quantitative approach is used to analyze the primary data gathered through structured questionnaire from 207 employees of ethio telecom supply chain management division staff. Both descriptive and explanatory research design is used. The data was analyzed through descriptive statistics and inferential analysis methods. The employees have agreed with the extent of operational performance, effective inventory planning, inventory controlling, inventory recording and strategic supplier partnership from low extent to high extent. The multiple regression analysis result indicated that all factors except inventory recording have significant effect on operational performance. Furthermore, 49.1 percent change in operational performance is explained by effective inventory planning, inventory controlling, inventory recording and strategic supplier partnership. Finally, the study recommends the case company to improve employees’ ability and management’s commitment towards inventory management practices and to invest more to reduce lead time and enhance leanness. Key terms; effective inventory planning, inventory controlling, inventory recording, strategic supplier partnership, operational performance