A Study of Inventory Management and its Impact on Retail Business Performance

Author

Badri Hari Priya, Romala Vijaya Srinivas


Abstract

 Inventory management presents a practical issue for retail businesses, where appropriate stock levels impact both customer service and operational cost. The study explores the associations between day-to-day inventory practices and reported retail business performance. Primary data were collected from 50 respondents using a structured 22-item questionnaire, covering stock tracking, stock checking, ordering, demand forecasting, seasonal adjustment, stock shortages, sales, profitability, work efficiency and overall inventory management. The coded responses were analysed using frequency and percentage analysis, mean, median, standard deviation, chi-square tests, one-way ANOVA, Pearson correlation and linear regression. The results show that 52% of respondents check stock every day and 44% reorder when stock becomes low. Supplier delays were the most common difficulty (36%). The mean overall inventory-management rating was 3.88/5, while the combined inventory-management practice index had a mean of 3.18/4. Chi-square tests and one-way ANOVA did not show statistically significant differences for individual practices or respondent groups. However, inventory management practices had a significant positive relationship with business performance (r = 0.427, p = .002). Simple regression revealed that the practice index significantly predicted performance (b = 0.762, p = .002, R² = .182). The findings suggest that retailers benefit more from a consistent set of inventory practices than from one practice.



Keywords

Inventory Management; Retail Business; Stock Control; Customer Satisfaction; Business Performance; Regression Analysis



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References


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