SUSTAINABLE INVENTORY MANAGEMENT TECHNIQUES AND PERFORMANCE OF A BREWERY IN OSUN STATE, NIGERIA

Abstract

The study evaluated the effect of inventory management strategies on the financial outcomes and customer contentment of International Brewery Plc, Ilesa, Osun State, Nigeria. The objectives of the study were to: (i) examine the relationship between Economic Order Quantity (EOQ) and the financial performance of the brewery in Ilesa, Osun State, Nigeria (ii) evaluate the correlation between Always Better Control (ABC) analysis and  customer satisfaction (iii) determine the effect of Just-In-Time (JIT) on the performance of the brewery and (iv) assess the correlation between Vendor Managed Inventory (VMI) and performance of the brewery in Osun state, Nigeria. The research methodology was a descriptive survey. A questionnaire was the instrument used to obtain information from the participants. The sample size utilized for this study was 194. The Spearman correlation coefficient was
employed to evaluate the correlation between inventory  management techniques and performance of the brewery. Findings revealed that EOQ, ABC analysis, JIT and VMI had significant positive correlations with the performance of the brewery. The study concluded that the brewery should adopt EOQ, ABC analysis, JIT and VMI to sustain and maintain proper, effective and optimal inventory management in an effort to attain economic viability. The study recommended that the brewery industry, especially International Breweries Plc, Ilesa, should encourage the adoption of EOQ, ABC analysis, JIT and VMI in their operations to enhance a sustainable and efficient inventory management system, which will increase profitability and performance.