The Impact of Inventory Management on Organizational Performance of ABC Lingerie

Inventories are the most crucial component of majority corporations’ and organisations’ working capital structures. In every industrial organization, proper inventory management protects the company from poor quality output, customer unhappiness, financial loss, and social responsibility. Effective supply chain flow management is one of the most significant components in a firm’s success. Therefore, this research aims at assessing the impact of inventory management on organizational performance of Apparel industry in Sri Lanka, in the context of ABC Lingerie. Based on the previous literature, a conceptual framework was developed using five independent variables and organizational performance as the dependant variable. As the research design of the study, the author used a positivism research philosophy, with a deductive approach, in which data was collected using a self-administered questionnaire with 40 questions, from a selected sample of 108 executive employees of ABC Lingerie as the sample size. According to the findings of the study, all five selected independent variables have a positive as well as statistically significant relationship with organizational performance, where Just-in-Time approach and lean theory practices are observed to have a high correlation with organizational performance, whilst variables such as vendor managed inventory practices, material requisition planning and economic order quantity practices was found to have a comparatively lower correlation.