THE EFFECT OF INVENTORY MANAGEMENT PRACTICES ON PRODUCTIVITY

Abstract

Inventory management provides an effective way to track products and goods down to the market from the supervisor. There are many ways to manage inventory that offer many benefits. The company should ensure the proper flow of goods in and out without overstocking. This study has examined the effect of inventory management practices on productivity at Jeddah, Saudi Arabia. The study focused on a gap that hasn’t been explored before: the effect of internal structure. Qualitative, quantitative, and mixed research was used on both primary and secondary data. The sample size was 50 obtained across 5 firms using a stratified sampling method. The data were subjected to a Pearson chi-square test using SPSS.  The findings have shown that inventory management practice has reduce production costs, minimizes scrap and objects, prevents shortages and stock out costs, minimizes machine downtime, reduces the length of delivery time, and meets customer requirements. Thus, there is a positive connection between inventory management practices on productivity