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Inventory Management - A Tool for Optimal Use of Resources and Overall Efficiency in Manufacturing SMEs

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  • Olusakin S Akindipe

    (Igbajo Polytechnic, Department of Business Administration)

Abstract

Observation shows that there is a serious problem regarding inventory management in manufacturing organizations, particularly in Small and Medium Enterprises (SMEs). This has prompted the desire to embark on a study that will examine the problem and strive to proffer useful suggestions. This paper intends to bring to the fore the salient issue of inefficiency in the practice of inventory management and its effects on production operations of manufacturing concerns. Survey design was used with the application of random sampling technique in selection of units within the case study areas. Primary data were collected through the use of structured questionnaires and the analysis was done using Pearson correlation coefficient and frequency counts and percentages to give adequate descriptions. The study concluded that efficient management of stock would be achieved through determination of stock levels, engagement of skilled store personnel, and the use of automated stock control. It went further to assert that the achievement of optimal use of resources through efficiency in the management of stock will eliminate the problems of sudden lack of stock; the resultant low capacity utilization, loss of production time, and thereby improving overall efficiency of the manufacturing SMEs and breed high performing entrepreneurs.

Suggested Citation

  • Olusakin S Akindipe, 2014. "Inventory Management - A Tool for Optimal Use of Resources and Overall Efficiency in Manufacturing SMEs," Journal of Entrepreneurship, Management and Innovation, Fundacja Upowszechniająca Wiedzę i Naukę "Cognitione", vol. 10(4), pages 93-113.
    • Handle: RePEc:aae:journl:v:10:y:2014:i:4:p:93-113
    DOI: 10.7341/20141044
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    References listed on IDEAS

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    1. Héctor Montiel Campos & Luis S. Alvarado Acuna & José Pablo Nuno de la Parra & Francisco A. Aguilar Valenzuela, 2013. "Entrepreneurial Orientation in Mexican Microenterprises," Journal of Entrepreneurship, Management and Innovation, Fundacja Upowszechniająca Wiedzę i Naukę "Cognitione", vol. 9(3), pages 5-20.
    2. Aryeetey, Ernest, 2001. "Priority Research Issues Relating to Regulation and Competition in Ghana," Centre on Regulation and Competition (CRC) Working papers 30619, University of Manchester, Institute for Development Policy and Management (IDPM).
    3. Chikan, Attila & Whybark, D. Clay, 1990. "Cross-national comparison of production--inventory management practices," Engineering Costs and Production Economics, Elsevier, vol. 19(1-3), pages 149-156, May.
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    Cited by:

    1. Dumisani Mawonde & Casper Demberere, 2022. "The Effect of Inventory Control Systems on Organisational Performance in the Mining Sector of Zimbabwe," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 6(1), pages 273-279, January.
    2. Widyastuti Widyastuti & Nadia Asandimitra & Yessy Artanti, 2018. "Inhibiting Factors of Inventory Management: Study on Food and Beverage Micro Small And Medium Enterprises," International Review of Management and Marketing, Econjournals, vol. 8(1), pages 64-67.

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