Effect of inventory management and customer satisfaction

Abstract

The aim of the study was to examine the effect of Inventory Management on Customer Satisfaction. The study was to determine whether there are effective Inventory Management practices and policies in Shoprite (U) Ltd since it sales a variety of products and the extent it has contributed to Customer Satisfaction. The population of the study was 50 while the sample size of 44 was extracted from the population using Taro Yamane (1973) method. The study used case study design. Structured questionnaires as well as interview guide were used to gather primary data while secondary data was extracted from annual reports, books and journals. Pearson Correlation analysis was used in testing the relationship that relates to secondary data and primary data. The result of the study findings indicated that Just-In-Time has a moderate weak positive significant effect on customer satisfaction of Shoprite (U) Ltd; that Periodic Review Inventory has a moderate strong positive significant effect on customer satisfaction of Shoprite (U) Ltd and that ABC model has a weak significant positive effect on customer satisfaction of Shoprite (U) Ltd. In respect to the above findings, the study concludes that effective inventory management is the fulcrum on which satisfaction of customers revolves. The study therefore recommends among others that Shoprite (U) Ltd should give more serious attention to inventory management, separate other types of stock from the ones most consumed and endeavor to choose appropriate inventory management strategies that match their strategic goal and as well implement such practices to achieve cost reduction and customer satisfaction