FACTORS AFFECTING TO THE INVENTORY MANAGEMENT OF LISTED MANUFACTURING COMPANIES IN SRI LANKA

Abstract

Inventory Management concept is a one of integral component of the manufacturing company to utilize resources effective and efficient manner. The purpose of this study to examine what factors affecting to the inventory management with reference to the 36 listed manufacturing companies in Colombo Stock Exchange Sri Lanka, based on convenient sampling method. Data were collected through structured questionnaire distributing via e-mail and postal mail for store managers, procurement executive, stock keeper and inventory handler as respondents. Descriptive Statistics, Pearson correlation analysis and multiple leaner regression tool were adopted to test the hypotheses. The researchers have implemented the five-point Likert scale rating method (1= strongly disagree and 5 = strongly agree) for this study. The study found that Procurement procedure, Inventory Planning, Documentation and Funding are significantly influence to the inventory management practices but skills of staff is not significantly influence to the inventory management practices. Hence this study recommended that sufficient procurement procedure system with inventory planning and documentation is needed to maintain success inventory management system in listed manufacturing companies in Sri Lanka. The findings of the study hold practical implications for Policy makers, Managers, investors, procurement executive and stock keepers.