The influence of inventory management on operational performance of manufacturing business in Tagum City

Abstract

The operational effectiveness of manufacturing enterprises in Tagum City was evaluated based on the level of inventory management adopted in their various organizations in this study. It also managed to figure out if there was a link between inventory management and operational performance in Tagum City's manufacturing enterprises. This study employed a quantitative nonexperimental research design with a correlational approach to estimate the respondents' manufacturing enterprises' inventory management and operational performance. The data was analyzed and interpreted using mean, Pearson (r), and linear regression analysis after it was acquired through physical surveys with the approval of the appropriate individuals from city administration officials to school administrators and managers. Using a pre-existing survey questionnaire that was partially adopted, this result of the study verifies that manufacturing businesses in Tagum City have a high level of inventory management in terms of inventory forecasting, future inventory price forecasting, inventory valuation, physical inventory and available physical space for inventory. It was also disclosed that the respondents have a high level of operational performance as well, measured in terms of profit, investment return and sales return. Moreover, the study reveals a significant relationship between inventory management and operational performance of manufacturing businesses. This implies that inventory management influence the operational performance of manufacturing businesses in Tagum city.