The Influence of Inventory Management Practices on Organizational Performance: The Case of Tanzania Airports Authority
DOI:
https://doi.org/10.65150/EP-jefrrV1E4/2025-01Keywords:
Inventory Management Practices, Organization Performance, Inventory level, Lead times, Demand forecastingAbstract
The research analysed the influence of inventory management practices on organizational performance. Specifically, it examined the influence of inventory levels, lead times, and demand forecasting on organizational performance. The study guided by the Just-In-Time (JIT) inventory theory, which emphasizes minimizing inventory levels, reducing waste, and aligning material orders with operational demand to enhance efficiency and reduce costs. A quantitative research approach was adopted, using a descriptive research design to collect and analyse data. The study was conducted at Tanzania Airports Authority in Dar es Salaam, targeting a population of 111 staff members directly involved in inventory and operational management. The study employed a census method, using all 111 respondents as the sample. Data were analysed using regression and correlation analyses to determine the relationships between the independent variables and organizational performance. The findings revealed that inventory levels significantly influence organizational performance, with a regression coefficient of 0.425 and a correlation of 0.704, indicating that improved stockholding and minimized stock-outs enhance operational efficiency. Lead times were also found to positively affect organizational performance, with a regression coefficient of 0.426 and a correlation of 0.706, demonstrating that shorter procurement cycles, efficient logistics, and timely order processing enhance service reliability and reduce operational costs. Demand forecasting similarly showed a strong positive influence, with a regression coefficient of 0.425 and a correlation of 0.704, highlighting that accurate forecasting reduces stock-outs, lowers excess inventory, and improves cost efficiency. The study concluded that effective inventory management practices, including optimal inventory levels, streamlined lead times, and accurate demand forecasting, are critical for enhancing organizational performance at Tanzania Airports Authority. Based on these findings, the study recommends that the Authority adopt advanced inventory tracking systems, implement lean supply chain practices, integrate data-driven demand forecasting tools, and provide continuous staff training to improve operational efficiency, cost effectiveness, and service delivery reliability.
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Copyright (c) 2025 Wambura Thomas, Felex Vicent (Author)
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