INVENTORY MANAGEMENT PRACTICES AND FIRMS PERFORMANCE OF GROCERY STORES

ABSTRACT

This study investigated inventory management practices and organisational performance of grocery stores in Benin City, Edo state. Data were primarily sourced through the online administration of two hundred and fifty (250) questionnaire out of which same number (250) were found usable for the empirical analysis. The descriptive (frequency, mean and percentage) and inferential statistics (regression) were adopted for the study’s analysis. It was revealed that: stock levels and supplier management both has positive and significant relationship with organisational performance; whereas demand forecasting and product lifecycle was found to have a nonsignificant relationship with organisational performance. As a result of these findings, it was recommended that: it is advisable for store managers to optimize their inventory levels which entails maintaining an appropriate balance between overstocking and understocking; grocery stores should focus on building strong relationships with their suppliers, including negotiating favorable terms, timely deliveries, and ensuring the quality of products; it is important for grocery stores to periodically reevaluate their demand forecasting methods; and it is still crucial for grocery stores to monitor product lifecycles closely.