Publication Information
Journal: NAU Journal of Technology and Vocational Education
Volume: 8 (2023)
PERPETUAL AND JUST-IN-TIME INVENTORY CONTROLAPPROACHES APPLIED BY MANAGERS FOR IMPROVINGOPERATIONS OF SMALL AND MEDIUM SCALE ENTERPRISES
Okolocha, C. C
Department of Technology and Vocational Education, Nnamdi Azikiwe University
Udegbunam, Emmanuel Obidi
uemmanuelobidi@yahoo.com Department of Technology and Vocational Education, Nnamdi Azikiwe University
This study ascertained the extent managers applied perpetual and just-in-time inventory approaches
for improving operations of small and medium scale enterprises in South-East Nigeria. Two researchquestions and two null hypotheses guided the study. Descriptive survey research design was adoptedfor the study. The population comprised 4745 registered SMEs managers from services, constructionand manufacturing businesses operating within South-East Nigeria. Sample size of 1424 registeredSMEs managers were used, through proportionate stratified random sampling technique. Theinstrument for data collection was a 22-item structured questionnaire. The instrument was validatedby three experts. Cronbach Alpha was used to determine the internal consistency of the instrument, with an overall co-efficient value of 0.91. Mean and standard deviation were used to answer theresearch questions, while Analysis of Variance (ANOVA) was used to test the null hypotheses at 0.05alpha levels. The findings of the study revealed that just-in-time inventory approaches is lowlyapplied by managers of SMEs in South-East, Nigeria, while perpetual inventory approaches aremoderately applied to improve their business operations. Years of business experience of managers of
SMEs significantly influence their mean ratings on the extent just-in-time inventory approaches areapplied for improving operations in South-East Nigeria; but did not significantly influence their meanratings on the extent perpetual inventory approaches are applied for improving operations. It was
recommended among others that Management of small and medium scale enterprises should organizeregular training for managers on various inventory control approaches that will empower themtoadequately apply different inventory control approaches appropriately for busines growth, sustainability, and development.
for improving operations of small and medium scale enterprises in South-East Nigeria. Two researchquestions and two null hypotheses guided the study. Descriptive survey research design was adoptedfor the study. The population comprised 4745 registered SMEs managers from services, constructionand manufacturing businesses operating within South-East Nigeria. Sample size of 1424 registeredSMEs managers were used, through proportionate stratified random sampling technique. Theinstrument for data collection was a 22-item structured questionnaire. The instrument was validatedby three experts. Cronbach Alpha was used to determine the internal consistency of the instrument, with an overall co-efficient value of 0.91. Mean and standard deviation were used to answer theresearch questions, while Analysis of Variance (ANOVA) was used to test the null hypotheses at 0.05alpha levels. The findings of the study revealed that just-in-time inventory approaches is lowlyapplied by managers of SMEs in South-East, Nigeria, while perpetual inventory approaches aremoderately applied to improve their business operations. Years of business experience of managers of
SMEs significantly influence their mean ratings on the extent just-in-time inventory approaches areapplied for improving operations in South-East Nigeria; but did not significantly influence their meanratings on the extent perpetual inventory approaches are applied for improving operations. It was
recommended among others that Management of small and medium scale enterprises should organizeregular training for managers on various inventory control approaches that will empower themtoadequately apply different inventory control approaches appropriately for busines growth, sustainability, and development.
Abosede, A. J., Banjo, H. A. and Regin, O. O. (2017). Performance of small and mediumscaleenterprises in Lagos State: The implication of finance. Acta Universitatis Danubius, 13(5), 72-83. Akinlabi, B. H. (2021). Effect of inventory management practices on operational performance of flour
milling companies in Nigeria. International Academy Journal of Management, Marketingand Entrepreneurial Studies, 8(2), 137-174. Alabi, Y., Awe, O. J. and Musa, L. Y. (2017). Managing small and medium scale enterprises inNigeria: Challenges and prospect. Review of Public Administration and Management, 3(7), 213-224. Agu, O. A., Obi-Aike, H. O. and Eke, C. N. (2016). Effect of inventory management ontheorganizational performance of the selected manufacturing firms. Singaporean Journal of
Business Economics and Management Studies, 5(4), 12-38. Choi, T. (2015). Handbook of EOQ inventory problems-stochastic and deterministic models andapplications. New York, Heidelberg, Dordrecht, London: Springer Companies in Kenya. MBA Project, University of Nairobi, Kenya. Chopra, A. (2015). Innovative state: How new technologies can transform government. NewYork:
Atlantic Monthly Press. Eze, A. N. and Uchenu, C. A. (2021). Inventory management techniques of small and mediumscaleenterprises in Anambra State. Unizik Journal of Educational Research and Policy Studies, 3(1), 295-307. Retrieved from https://unijerps.org
Imosi, A. I. and Ephraim, J. (2015). Small and medium sale enterprises economic growth in Nigeria1975-2012. International Journal of Business and Management, 10(3), 203-216. doi:10.5539/ijbm. Kumar, P. and Anas, M. (2013). An ABC-Analysis for the Multiple-Products Inventory Management. International Journal of Research in Engineering & Advanced Technology, 1(5), 302-313. Marfo-Yiadom, E., Asante, S. and Darkwah, P. (2008). Management accounting, Cape Coast, Ghana:
University Printing Press. Mbanugo, C. I. and Uzoka, O. A. (2021). Perpetual inventory management practice applied by stores
officers in public tertiary educational institutions in South-East Nigeria. Unizik Journal of
Educational Research and Policy Studies, 14(1), 1-10. Retrieved from https://unijerps.orgMohammed, S. A, Balaraba, A. J. and Salawak, A. (2017). Challenges affecting the performance of
small and medium scale enterprises (SMSEs) in Nigeria. International Journal of Scientific & Engineering Research, 9(2), 151-160. Retrieved fromhttps://www.researchgate.net/publication/319326712
Musara, M. (2016). Impact of just-in-time (JIT) inventory system on efficiency, quality andflexibility among manufacturing sector, small and medium enterprise (SMEs) in South Africa. African Journal of Business Management, 6(17), 5786-5791. Retrieved fromhttp://www.academicjournals.org. Doi: 10.5897/AJBM12.148
Naliaka, V. W. and Namusonge, G. S. (2015). Role of inventory management on competitiveadvantage among manufacturing firms in Kenya: A case study of Unga group limited. International Journal of Academic Research in Business and Social Sciences, 5(5), 87-104. Nikita, N., Siphokazi, M., Sphelele, S., Siyanda, F., Mamorena, M. and Juan-Pierré, B. (2015). Inventory management systems used by manufacturing small medium and micro enterprises
in Cape Town. Mediterranean Journal of Social Sciences (MCSER) Publishing, Rome-Italy, 6(1), 382-390. Doi:10.5901/mjss.2015.v6n1p382
Olaoye, O. C., Adedeji, Q. A and Ayeni-Agbaj, A. R. (2018). Commercial Bank Lending to Small
and Medium Scale Enterprises and Nigeria Economy. Journal of Accounting, Business andFinance Research, 4(2), 49-55. DOI: 10.20448/2002.42.49.55 (CBN)
Olowolaju, M. (2015).An assessment of inventory management in small and mediumscale industrial
enterprises in Nigeria. European Journal of Business and Management, 5(28),150-158. Retrieved from http;//www.iiste.org. Onwuchekwa, F., Emele, E. A. and Onwuchekwa, J. A. (2017). Small and mediumscale enterprises
(SMES) and industrial development of Onitsha Metropolis: A cluster lead approach. International Journal of Economics and Business Management, 3(10), 64-77. Retrieved fromwww.iiardpub.org
Otchere, I. K.; Soumaré, I. and Yourougou, P. (2016). FDI and Financial Market Development inAfrica. Retrieved from https://ssrn.com/abstract=2778350. Shava, H. and Rungani, E. C. (2016). Gender differences in business related experience amongst
SME owners in King Williams Town, South Africa: A comparative analysis’, MediterraneanJournal of Social Sciences, 5(20), 2687-2697. Ugwu, I. V. and Nwakoby, N. P. (2020). Impact of inventory management on firmperformance inNigeria: Using grass roots opinion. International Journal of Engineering and InformationSystems, 4(11), 34-46. Wangari, K. L. and Kagiri, A. W. (2015). Influence of inventory management practices onorganizational competitiveness: A case of Safaricom Kenya Ltd. International
Academic Journal of Procurement and Supply Chain Management, 1(5), 72-98. Yasin, M., M. S. and Wafa, M. (2017). An empirical investigation of JIT effectiveness: Anorganizational perspective. Omega, 25(4), 461-471. Yitayew, A. (2014). Inventory management practice in case of Arba Minch University, Minch, GRINVerlag. https://www.grin.com/document/381182. Zbigniew, G. and Bieniasz, A. (2016). Empirical analysis of the influence of inventory management
on financial performance in the food industry in Poland. Inzinerine Ekonomika-Engineering2(1), 209-218. Retrieved from www.ijilpm.com.ng
milling companies in Nigeria. International Academy Journal of Management, Marketingand Entrepreneurial Studies, 8(2), 137-174. Alabi, Y., Awe, O. J. and Musa, L. Y. (2017). Managing small and medium scale enterprises inNigeria: Challenges and prospect. Review of Public Administration and Management, 3(7), 213-224. Agu, O. A., Obi-Aike, H. O. and Eke, C. N. (2016). Effect of inventory management ontheorganizational performance of the selected manufacturing firms. Singaporean Journal of
Business Economics and Management Studies, 5(4), 12-38. Choi, T. (2015). Handbook of EOQ inventory problems-stochastic and deterministic models andapplications. New York, Heidelberg, Dordrecht, London: Springer Companies in Kenya. MBA Project, University of Nairobi, Kenya. Chopra, A. (2015). Innovative state: How new technologies can transform government. NewYork:
Atlantic Monthly Press. Eze, A. N. and Uchenu, C. A. (2021). Inventory management techniques of small and mediumscaleenterprises in Anambra State. Unizik Journal of Educational Research and Policy Studies, 3(1), 295-307. Retrieved from https://unijerps.org
Imosi, A. I. and Ephraim, J. (2015). Small and medium sale enterprises economic growth in Nigeria1975-2012. International Journal of Business and Management, 10(3), 203-216. doi:10.5539/ijbm. Kumar, P. and Anas, M. (2013). An ABC-Analysis for the Multiple-Products Inventory Management. International Journal of Research in Engineering & Advanced Technology, 1(5), 302-313. Marfo-Yiadom, E., Asante, S. and Darkwah, P. (2008). Management accounting, Cape Coast, Ghana:
University Printing Press. Mbanugo, C. I. and Uzoka, O. A. (2021). Perpetual inventory management practice applied by stores
officers in public tertiary educational institutions in South-East Nigeria. Unizik Journal of
Educational Research and Policy Studies, 14(1), 1-10. Retrieved from https://unijerps.orgMohammed, S. A, Balaraba, A. J. and Salawak, A. (2017). Challenges affecting the performance of
small and medium scale enterprises (SMSEs) in Nigeria. International Journal of Scientific & Engineering Research, 9(2), 151-160. Retrieved fromhttps://www.researchgate.net/publication/319326712
Musara, M. (2016). Impact of just-in-time (JIT) inventory system on efficiency, quality andflexibility among manufacturing sector, small and medium enterprise (SMEs) in South Africa. African Journal of Business Management, 6(17), 5786-5791. Retrieved fromhttp://www.academicjournals.org. Doi: 10.5897/AJBM12.148
Naliaka, V. W. and Namusonge, G. S. (2015). Role of inventory management on competitiveadvantage among manufacturing firms in Kenya: A case study of Unga group limited. International Journal of Academic Research in Business and Social Sciences, 5(5), 87-104. Nikita, N., Siphokazi, M., Sphelele, S., Siyanda, F., Mamorena, M. and Juan-Pierré, B. (2015). Inventory management systems used by manufacturing small medium and micro enterprises
in Cape Town. Mediterranean Journal of Social Sciences (MCSER) Publishing, Rome-Italy, 6(1), 382-390. Doi:10.5901/mjss.2015.v6n1p382
Olaoye, O. C., Adedeji, Q. A and Ayeni-Agbaj, A. R. (2018). Commercial Bank Lending to Small
and Medium Scale Enterprises and Nigeria Economy. Journal of Accounting, Business andFinance Research, 4(2), 49-55. DOI: 10.20448/2002.42.49.55 (CBN)
Olowolaju, M. (2015).An assessment of inventory management in small and mediumscale industrial
enterprises in Nigeria. European Journal of Business and Management, 5(28),150-158. Retrieved from http;//www.iiste.org. Onwuchekwa, F., Emele, E. A. and Onwuchekwa, J. A. (2017). Small and mediumscale enterprises
(SMES) and industrial development of Onitsha Metropolis: A cluster lead approach. International Journal of Economics and Business Management, 3(10), 64-77. Retrieved fromwww.iiardpub.org
Otchere, I. K.; Soumaré, I. and Yourougou, P. (2016). FDI and Financial Market Development inAfrica. Retrieved from https://ssrn.com/abstract=2778350. Shava, H. and Rungani, E. C. (2016). Gender differences in business related experience amongst
SME owners in King Williams Town, South Africa: A comparative analysis’, MediterraneanJournal of Social Sciences, 5(20), 2687-2697. Ugwu, I. V. and Nwakoby, N. P. (2020). Impact of inventory management on firmperformance inNigeria: Using grass roots opinion. International Journal of Engineering and InformationSystems, 4(11), 34-46. Wangari, K. L. and Kagiri, A. W. (2015). Influence of inventory management practices onorganizational competitiveness: A case of Safaricom Kenya Ltd. International
Academic Journal of Procurement and Supply Chain Management, 1(5), 72-98. Yasin, M., M. S. and Wafa, M. (2017). An empirical investigation of JIT effectiveness: Anorganizational perspective. Omega, 25(4), 461-471. Yitayew, A. (2014). Inventory management practice in case of Arba Minch University, Minch, GRINVerlag. https://www.grin.com/document/381182. Zbigniew, G. and Bieniasz, A. (2016). Empirical analysis of the influence of inventory management
on financial performance in the food industry in Poland. Inzinerine Ekonomika-Engineering2(1), 209-218. Retrieved from www.ijilpm.com.ng