THE UNIVERSITY OF BAMMENDA

HIGHER INSTITUTE OF DEPARTMENT OF

TRANSPORT AND TRANSIT AND
LOGISTICS (HITL) LOGISTICS

IMPACT OF INVENTORY MANAGEMENT ON FIRM'S

PERFORMANCE:
CASE OF UPPER NUN VALLEY DEVELOPMENT AUTHORITY
(UNVDA) NDOP-BAMENDA

A Research Project Submitted to the Department of Transit and Logistics of the Higher
Institute of Transport and Logistics in partial fulfillment of the requirements for the award of
a Bachelor of Science (BSc) Degree in Transit and Logistics.

By
NDZEKEYEM SOULEMANU NKOUMEH
Registration No. UBa21R0366

Supervisor
Mr. ATAAH M. FONDEH
(Lecturer)

JULY, 2024
© Copyright by NAME, 2024
All Rights Reserved
 DECLARATION
I Ndzekeyem Soulemanu Nkoumeh hereby declare that this project has been done by me and
is a record of my research effort. It has not been presented before or elsewhere in application
for a degree award or its equivalent. All borrowed information has been duly acknowledged
by means of references.

NAME : Ndzekeyem Soulemanu Nkoumeh

Student

Signature: ____________________ Date: .…/……./…....

i
 CERTIFICATION
This is to certify that the research project entitled, Impact of Inventory Management on
Firm's Performance is the original work of NDZEKEYEM SOULEMANU NKOUMEH
(UBa21R0366), a student in the department of Transit and Logistics of the Higher Institute of
Transport and Logistics and meets the requirements and regulations governing the award of a
Bachelor of Science Degree in Transit and Logistics. NAME.. in the University of Bamenda.

Signature: ________________ Date: ……/……../…….

Name Mr. ATAAH M. FONDEH

(Supervisor)

Signature: __________________ Date: ……./……./……….

Name: Mr Yongho Adamu Bebie

(Head of Department)

Name Prof. FOMBE LAWRENCE FON

(Director)

Signature: __________________ Date: ……/……../…….

ii
 DEDICATION
To NDZEKEYEM’S Familly

iii
 ACKNOWLEDGEMENTS

This work would not have been accomplished without the intervention of a large number of
people who with their support, advise and encouragement contributed to the success of this
work.

To begin with I want to appreciate my supervisor Mr. ATAAH M. FONDEH for his sacrifice
and willingness to make time to supervise this research project. I am thankful for his efforts
as a father and a supervisor. I render immense gratitude to Prof. FOMBE LAWRENCE FON,
the director of HITL, Mr Yongho Adamu Bebie and their team of Administrators for their
endless efforts in leading the Higher Institute of Transport and Logistics to the cutting edge
era of indisputable qualities in knowledge, probity and entrepreneurship.
Special thanks goes to the lecturers and the staff of the Transit department for their patience,
encouragement and impressive teachings.
Big thanks to the chief of office in UNVDA, Mr. Tibung Aaron Ekenyi and Mr. Shey Louis
for granting me the opportunity to do my research. My appreciation equally goes to all the
workers of UNVDA for their cooperation.

I extend a heartfelt gratitude to my beloved mum Mama Mariama Nchi, Mme Nunwe
Mariama. This list is long but will be very limited if I don't reiterate the efforts of Ndzekeyem
Fatima, my brothers and sisters, special one goes too to Mr. Nkanghamih Ibrahim, Spensa
Lebgah for their tireless efforts to help me through above all to Allah the Almighty the Most
Loving the Most Merciful. I admit my short comings not mentioning all those who supported
me physically, financially, spiritually and all wise please accept from me my profound
gratitude.

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 ABSTRACT

This study examines the impact of inventory management practices on the performance of the
Upper Noun Development Authority (UNVDA), a key organization in Ndop, Cameroon. The
research objectives were to evaluate the influence of UNVDA's inventory policies,
forecasting techniques, and replenishment strategies on the firm's overall performance, to
examine the impact of the organization's forecasting practices, and to investigate the effect of
lead time on UNVDA's performance. The study was conducted with a sample of 25 UNVDA
employees in Ndop to obtain their perceptions on the effectiveness of the organization's
inventory management practices and their influence on firm performance. The findings
indicate that UNVDA's inventory management practices, including its inventory policies,
forecasting techniques, and replenishment strategies, are perceived to have a significant
positive impact on the organization's performance, contributing to improved customer
satisfaction, reduced costs, and increased profitability. Specifically, the survey respondents
agreed that UNVDA's inventory policies, such as inventory level management and stockout
minimization, as well as its effective forecasting capabilities, particularly in demand
forecasting, are major drivers of the firm's success. Additionally, the study revealed the
positive effect of lead time on UNVDA's performance, underscoring the importance of
efficient replenishment practices. Based on these findings, the study recommends that
UNVDA continue to refine and improve its inventory management practices, with a focus on
enhancing forecasting accuracy, optimizing replenishment strategies, and leveraging
inventory policies to drive organizational efficiency and competitiveness, which can position
the organization for long-term growth and improved performance.

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 TABLE OF CONTENTS
DECLARATION ............................................................................................................................................ i

CERTIFICATION. ........................................................................................................................................ ii

DEDICATION .............................................................................................................................................. iii

ACKNOWLEDGEMENTS .......................................................................................................................... iv

ABSTRACT ...................................................................................................................................................v

LIST OF ABBREVIATION ........................................................................................................................ xii

CHAPTER ONE .............................................................................................................................................1

INTRODUCTION ..........................................................................................................................................1

1.1 Background to the study .......................................................................................................................1

1.2 Problem Statement ................................................................................................................................5

1.3 Research question .................................................................................................................................6

1.3.1 Research Main Question ....................................................................................................................6

1.3.2 Specific research questions ................................................................................................................6

1.4 Research objectives...............................................................................................................................6

1.4.1 Main objectives ..................................................................................................................................6

1.4.2 Specific research objectives: ..............................................................................................................6

1.5 Research Hypothesis .............................................................................................................................6

1.5.1 Main research Hypothesis ..................................................................................................................7

1.5.2 Specific Research Hypothesis ............................................................................................................7

1.6 Scope and delimitation of the Study .....................................................................................................7

1.6.1 Scope of the Study .............................................................................................................................7

1.6.2 Logistics performance in UNVDA Ndop-Bamenda. .........................................................................7

1.6.2.1 Spatial Delimitation ....................................................................................................................8

1.6.2.2 Time Frame .................................................................................................................................8

1.6.2.3 Thematic Delimitation ................................................................................................................8

1.7 Significance of the Study ......................................................................................................................8

1.7.1 UNVDA, NDOP-BAMENDA ...........................................................................................................9

1.7.2 Logistics Industry ..............................................................................................................................9

1.7.3 Academic Research............................................................................................................................9

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 1.8 The Organization of the Study ..............................................................................................................9

CHAPTER TWO ..........................................................................................................................................10

LITERATURE REVIEW .............................................................................................................................10

2.1 Conceptual Review .............................................................................................................................10

2.1.1 Inventory Management: ...................................................................................................................10

2.1.2 Inventory Management and Firm's Performance .............................................................................11

2.1.4 Conceptual framework .....................................................................................................................11

2.3 Conceptual framework ........................................................................................................................12

2.4 Theoretical Review .............................................................................................................................13

2.2.1 Service level theory .........................................................................................................................13

2.2.2 Economic Order Quantity Theory (EOQ) ........................................................................................13

2.2.3 Supply chain management theory ....................................................................................................14

2.3 Empirical Review ...............................................................................................................................14

2.3.1 Impact of forecasting on the performance of firms the case of UNVDA NDOP-BAMENDA .......14

2.3.2 Impact of lead time on the performance of firms ............................................................................15

2 .3.3 Impact of inventory planning on firms performance ......................................................................16

2.4 Research Gap ......................................................................................................................................17

CHAPTER THREE ......................................................................................................................................18

STUDY AREA AND RESEARCH METHODOLOGY ..............................................................................18

3.1 Study Area ..........................................................................................................................................18

3.1.2 Background of Upper Noun Valley Development Authority (UNVDA) ........................................18

3.1.2.1 The Evolution Of Upper Noun Valley Development Authority (UNVDA) miles 25, NDOP-
Bamenda ...............................................................................................................................................18

3.1.2.1.1 Early Years (1972-1980s): .....................................................................................................18

3.1.2.1.2 Expansion and Diversification (1980s-1990s): ......................................................................19

3.1.2.1.3 Challenges and Restructuring (1990s-2000s): .......................................................................19

3.1.2.1.4 Current Status and Ongoing Initiatives: .....................................................................................19

3.1.2.2 Location the Organisation .............................................................................................................19

3.2 Research Design .................................................................................................................................19

3.3 Population of the Study.......................................................................................................................20

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 3.4 Sampling and Sampling Procedure .....................................................................................................20

3.5 Data Collection Sources......................................................................................................................20

3.5.1 Primary Sources ...............................................................................................................................20

3.5.2 Secondary Sources ...........................................................................................................................21

3.5.2.1 Library Sources .............................................................................................................................21

3.5.2.2 Internet Sources ............................................................................................................................21

3.6 Data Treatment and Presentation ........................................................................................................21

3.7 Ethical Considerations ........................................................................................................................21

3.8 Conclusion ..........................................................................................................................................22

CHAPTER FOUR.........................................................................................................................................23

PRESENTATION OF RESULTS ................................................................................................................23

4.0 Introduction.........................................................................................................................................23

4.0.1 Longevity in UNVDA......................................................................................................................23

4.1 The Impact of Inventory Management Practices On the Performance of Firms the Case of UNVDA
in Terms of Inventory Policies, Forecasting Techniques and Replenishment Strategies..........................24

4.2 The Forecasting Impact on the Performance of Firms the Case of UNVDA......................................26

4.3 The Effect of Lead Time On the Performance of Firms the Case of UNVDA ...................................29

4.2 Inferential Analysis .............................................................................................................................31

4.2.1 Correlation Matrix ...........................................................................................................................31

4.2.1 Exploratory Factor Analysis ............................................................................................................32

4.3 Discussion of the finding ....................................................................................................................33

CHAPTER FIVE ..........................................................................................................................................34

SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS .........................................34

5.0 Introduction.........................................................................................................................................34

5.1 Summary of the Study Findings According to Objectives..................................................................34

5.1.1 Summary of the Study Findings According to Objectives One .......................................................34

5.1.2 Summary of the Study Findings According to Objectives Two ......................................................35

5.1 Summary of the Study Findings According to Objectives Three .......................................................35

5.2 Conclusion ..........................................................................................................................................36

5.3 Limitations of the Study......................................................................................................................36

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 5.4 Recommendations of The Research Findings .....................................................................................37

5.4.1 Recommendations of The Research Findings According to Objective One ....................................37

5.4.2 Recommendations of The Research Findings According to Objective Two ...................................37

5.4.3 Recommendations of The Research Findings According to Objective Three .................................37

5.5 Suggestions for Further Research .......................................................................................................38

REFERENCES .............................................................................................................................................39

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 LIST OF TABLES

Table 4.1: the impact of inventory management practices on the performance of firms the
case of UNVDA in terms of inventory policies, forecasting techniques and
replenishment strategies ....................................................................................... 25
Table 4.2: The forecasting impact on the performance of firms the case of UNVDA ........... 27
Table 4.3: the effect of lead time on the performance of firms the case of UNVDA. ............. 29
Table 4.2.1: Correlation matrix ................................................................................................ 31
Table 54.2.1 Rotated factor Matrix on the study objectives .................................................... 32

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 LIST OF FIGURE

Figure 1: Conceptual framework ............................................. Error! Bookmark not defined.

Figure 4.0.1 Longevity in UNVDA ......................................................................................... 23
2

xi
 LIST OF ABBREVIATION
SMSEs : Small and Medium Size Enterprises
UNVDA : Upper Noun Valley Development Authority

EOQ : Economic Order Quantity

JIT : Just-In-Time

SLAs : Service Level Agreements

xii
 CHAPTER ONE

INTRODUCTION
1.1 Background to the study

Inventory management plays a crucial role in the success of any business. Donald Walters
said Inventory management involves the formulation and execution of plans and policies to
ensure that stock levels are maintained at appropriate levels to support operational needs
while minimizing holding cost. Robert A.Davis defined inventory management as a process
of overseeing and controlling the flow of goods in and out of the a company's inventory It
involves optimising innventory levels to minimise cost while ensuring that there is sufficient
stock to meet costumers demand. Hence inventory remains the greatest asset of a company
reason Alice Walton argued that one of the greatest responsibilities I have is to manage my
assets so that it creates values. Effective inventory management practices can help firms
reduce costs, improve customer service and gain competitive advantage in the market.

According to Simchi-Levi, Inventory management becomes more complex in global

operations due to uncertainties in demand In today highly competitive business environment,
logistics companies are constantly seeking ways to improve their operational efficiency in
order to become successful in the domain of costs reduction, enhance customer satisfaction,
and gain a competitive advantage. One strategic approach that has gained significant attention
is effective inventory management which focuses on optimising inventory holding costs like;
storing, handling, insuring, and financing inventory. Holding excessive inventory ties up
working capital unnecessarily. Chopra and Meindl, (2016), argued that having insufficient
inventory can lead to stockouts where customer demand cannot be met, resulting to lost of
sales opportunities and damage to brand image. These are powerful indicators of poor
performance as a result of inefficient inventory management. To erase these negatives
performances, some organisations source for more inventory to buffer against limited stock
or stock out inventory which to certain extent is not necessarily a solution reason Waller et
al., (1999), said that higher inventory should implies that inventory is sold and replaced more
frequently, reducing the time inventory sits idle in warehouses or stores not the other way
round where inventory is held in company's warehouse for long as it increases holding and
insurance costs. Isn't it crucial or essential to identify some key elements that can improve
firms performance? To begin with,Simchi-Levi et al., (2014). Forecasting accuracy.
Forecasting involves predicting future demand for products or services based on historical

1
data, market trends, and other relevant factors. Accurate forecasting helps businessmen to
determine how much inventory to hold, when to reorder, and how to optimize their supply
chain operations. By forecasting demand accurately, firms can prevent stockouts, reduce
excess inventory, and improve customer satisfaction. It however measures how efficiently
inventory is managed.

DeHoratius and Raman, (2008) Lead time: Lead time refers to the time it takes for an order to
be fulfilled from the moment it is placed. Understanding lead times is crucial for inventory
planning as it helps firms determine when to reorder products to avoid stockouts or overstock
scenario. By factoring in lead times, firms can establish reorder points and safety stock levels
to ensure smooth operations and minimize disruptions in their supply chain. Waller and
Fawcett, (2013). Inventory planning: Inventory planning involves determining the optimal
level of inventory to meet customer demand while minimizing costs and maximizing
profitability. Effective inventory planning requires a balance between holding enough stock
to fulfill orders promptly and avoiding excess inventory that ties up capital and storage space.
By using forecasting data and lead time information, businesses can develop inventory plans
that align with their sales goals, production capabilities, and overall business objectives.

To coined it all, forecasting, lead time, and inventory planning are interconnected elements
of inventory management that help businessmen optimize their inventory levels, improve
supply chain efficiency, and enhance customer satisfaction. By leveraging these elements
effectively, businessmen can achieve better control over their inventory, reduce costs and
drive sustainable growth thus all being indicators of positive performances. But how can
inventory management be viewed at the universal scale?

Inventory management is very importance in the success of logistics company operating in

the global market. An effective inventory management brings about a reduction of physical
inventory by 30% and stockouts by over 50% internationally as veiwed by Sanders et al.,
(2018). This enabled faster fulfillment across 20,000 outlets Li et al., (2018). Inventory and
logistics costs declined 25%, releasing $50M cash flow annually Chopra, (2019). Therefore
understanding the impact of inventory management on firm's performances is very crucial for
logistics companies and firms worldwide. According to Chopra and Meindl (2016): inventory
management is the process of planning, sourcing, monitoring and controlling inventory to
satisfy demand while minimizing holding costs. Chopra and Meindl (2016). Several studies
have emphasized the impact of inventory management in enhancing firms performances. For

2
instance Feng et al. (2009) administered a survey to inventory managers at 200 electronics
firms across East Asia. They found a positive correlation between level of inventory
automation (tracked using a 5-point scale) and key performance metrics like net profit
margin, inventory turnover and on-time delivery. Regression analysis indicated automation
can explain over 30% variance in firm performance in this region. Adopting another case
study approach, Gaur et al. (2011) analyzed inventory management transformation at
Hyundai Motors India. By implementing RFID, analytics and automated replenishment, the
company reduced inventory levels by 25% while increasing inventory turns by 40% over 2
years. This led to annual cost savings of $15 million and better customer fulfillment during
this high growth phase.

In the context of African continent, it's also important to appreciate the role of inventory
management on firms performance for effective practices can help firms overcome
challenges in its operating environments and gain competitive advantage. Afriyie et al.,
(2013) Inventory and logistics cost in Africa remain high relative to other regions due to
technological gaps and operational inefficiencies. Massa and Testa (2009). As economies in
the African continent continue developing, efficient and effective logistics networks are
increasingly important for trade, commerce and regional integration Ojala et al., (2018).
Inventory management, help coordinates and involves balancing stock levels to satisfy
customer needs while minimizing costs associated with overstock and stockouts Chopra and
Meindl, (2016). For retailers operating multiple stores, a coordinated approach can help
optimize inventory across different locations. This study analyzes the impact of a centralized
replenishment coordination system on inventory metrics and costs at a nationwide retail
chain. Several studies have emphasized the impact of inventory management in enhancing
firms performances. For instance Dr. Olumide Ijose: In his study titled "Inventory
Management and Firm Performance: Evidence from Selected African Countries," published
in the Journal of Economics and Sustainable Development, Dr. Ijose explored the relationship
between inventory management practices and firm performance in African countries. Ijose,
(2013) Dr. Olumide Ijose and Dr. Raymond Akpovire Oseghale: In their research article
"Inventory Management Practices and Firm Performance: Evidence from Nigerian
Manufacturing Firms," published in the International Journal of Economics, Commerce, and
Management, Dr. Ijose and Dr. Oseghale investigated the impact of inventory management
practices on the performance of manufacturing firms in Nigeria, a country in Africa. Ijose &
Oseghale, (2016) Last but not the least, Dr. Adeyemi A. Adebesin and Dr. A. A. Adesanya:

3
In their study titled "Inventory Management and Performance of Manufacturing Companies
in West Africa: A Case Study of Nigeria," published in the International Journal of Academic
Research in Accounting, Finance and Management Sciences, Dr. Adebesin and Dr. Adesanya
examined the relationship between inventory management practices and firm performance in
the manufacturing sector in Nigeria. Adebesin & Adesanya, (2016).

In Cameroon despite the increasing advantages of efficient inventory management on firms

performance, advancement in logistics operations is still creeping due to poor inventory
management, inadequate infrastructure and cross-border challenges Fomete et al., (2018).
Distribution challenges include mountainous terrain and ports serving landlocked neighbors
Nkongho et al., (2020). As one of the economies in Central Africa, efficient logistics is
important for Cameroon's trade and development (Fomete et al., 2018). balancing stock levels
to satisfy customer needs while minimizing costs associated with overstock and stockouts
Chopra and Meindl, (2016). offers potential to streamline inventory and accelerate fulfillment
supporting growth (Nkongho et al., 2020). However, limited research exists on its application
and impacts in Cameroon.

Some studies have actually emphasized the impact of inventory management in enhancing
firms performances. For instance Dr. Justin Akame and Dr. Alain Talla: In their study titled
"Inventory Management and Financial Performance of Small and medium size enterprises
(SMEs) in Cameroon," published in the International Journal of Scientific and Engineering
Research, they examined the relationship between inventory management practices and
financial performance among small and medium-sized enterprises (SMEs) in Cameroon.
Akame & Talla, (2017). Dr. Daniel Fonchamnyo and Dr. Francis Njike: In their research
article "Inventory Management Practices and Firm Performance in Cameroon: A Case Study
of Selected Manufacturing Firms," published in the International Journal of Research in
Business Studies and Management, they investigated the impact of inventory management
practices on the performance of manufacturing firms in Cameroon. Fonchamnyo & Njike,
(2019). Dr. Paul Ongolo-Zogo and Dr. Gilles Ntsama-Essomba: In their research article
"Inventory Management Practices and Firm Performance: Evidence from Cameroonian
SMEs," published in the International Journal of Economics, Commerce, and Management,
they examined the impact of inventory management practices on the performance of
Cameroonian SMEs. Ongolo-Zogo & Ntsama-Essomba, (2017)

4
1.2 Problem Statement
Inventory management plays a crucial role in determining the overall performance and
profitability of firms across various organisations.However, despite its significance, many
organizations continue to face challenges in effectively managing their inventory, which can
negatively impact their operational efficiency, financial performance, and customer
satisfaction. Therefore, it is essential to examine the impact of inventory management
practices on firm performance and identify the key issues that hinder optimal inventory
control. The problem at hand revolves around understanding how inefficient or inadequate
inventory management practices affect the performance of firms. Poor inventory management
can lead to several consequences, including excessive carrying costs, stockouts, overstocking,
increased lead times, and decreased customer satisfaction. These issues can result in financial
losses, decreased sales, damaged brand reputation, and missed business opportunities, disrupt
supply chain operations leading to production delays, increased transportation costs, and
reduced responsiveness to market demands. This can ultimately affect a firm's ability to meet
customer expectations, fulfill orders on time, and maintain a competitive edge in the market.

To smash these negative performances from its roots, it's necessary to highlight the causes of
suboptimal inventory management, such as inaccurate demand forecasting, inefficient order
processing, lack of real-time visibility into inventory levels, inadequate technology and
systems, and ineffective inventory control policies. By identifying these challenges and their
impact on firm performance, organizations can develop strategies to enhance their inventory
management practices, optimize inventory levels, improve order fulfillment processes, and
enhance overall operational efficiency. The problem of the impact of inventory management
on firm performance highlights the need for organizations to address the challenges
associated with inefficient inventory management practices. By understanding the
consequences of poor inventory control and identifying the underlying issues, firms can
implement effective inventory management strategies that maximize customer satisfaction,
improve financial performance, and maintain a competitive advantage in the market. All
these acted as impetus for this research (Impact of inventory management on firm's
performance). The choice of this topic is motivated by the need to address the specific
challenges faced by logistics companies in Cameroon, and the potential for inventory
management to improve logistics performance while the impact of inventory management on
firm's performances has been studied in various contexts, there is a research gap regarding its
application and effectiveness with firms by focusing on Upper Noun Valley Development

5
Authority known by it's acronyms UNVDA. This study aims to provide practical insights and
recommendations tailored to the specific context of the company. Understanding the impact
of the inventory management in enhancing logistics performance in UNVDA, can help
identify areas of improvement, streamline processes, allocate resources effectively, and
ultimately improve their competitiveness in the local market.

1.3 Research question

1.3.1 Research Main Question
The main research question is , How does inventory management practices impact firm's
logistics and financial performances? The case study of UNVDA. North west region of
Cameroon and it is guided with the following specific question?

1.3.2 Specific research questions

1. -What are the effect of forecasting on the performance of firms the case of UNVDA
NDOP-BAMENDA ?

2. -What are the impact of lead time on the performance of firms the case of UNVDA
NDOP-BAMENDA?

3. What are the consequences of inventory planning on the performance of firms the case of
UNVDA NDOP-BAMENDA?

1.4 Research objectives

1.4.1 Main objectives
To evaluate the impact of inventory management practices on firms performance
of UNVDA in the North West region of Cameroon.

1.4.2 Specific research objectives:

1. To assess the impact of forcasting on the performance of firms the case of UNVDA in
terms of inventory policies, forecasting techniques and replenishment strategies.

2. To examine lead impact on the performance of firms the case of UNVDA

3. To evaluate the effect of inventory planning on the performance of firms the case of
UNVDA

1.5 Research Hypothesis

The following hypothesis guided this research work

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1.5.1 Main research Hypothesis
The main hypothesis of this study is that, Inventory management have no significant impact
on performance of firms (UNVDA, NDOP-BAMENDA )

1.5.2 Specific Research Hypothesis

H01: Forecasting have no significant impact on the performance of firms (UNVDA NDOP-
BAMENDA)

HO2: Lead time has no significant impact on performance of firms (UNVDA, NDOP-
BAMENDA)

HO3: Inventory planning have no significant impact on performance of firms( UNVDA,

NDOP-BAMENDA)

1.6 Scope and delimitation of the Study

1.6.1 Scope of the Study
The scope of this study is to investigate the impact of inventory management in enhancing
insights into existing inventory management practices and evaluate the effectiveness of
inventory management optimization in enhancing firm's performances.

1.6.2 Logistics performance in UNVDA Ndop-Bamenda.

The study will focus on analyzing the current state of logistics operations within UNVDA
NDOP-BAMENDA specifically in the areas of effective inventory management, impacts of
inventory management on firm's performances and customer's satisfaction, and annalyze how
inventory management influence UNVDA operation efficiency and evaluate strategies being
implemented to improve logistics efficiency through inventory management within the
company. The research will identify areas of poor performance and explore opportunities for
improvement through the effective implementation of the inventory management. However,
the study's scope is limited to UNVDA Ndop-Bamenda and does not encompass the entire
firms in Cameroon or other locations. Though we appreciate different qualitative research
methods, including interviews, sample survey, questionnaire, document analysis, the
research will utilise questionnaires as mode of data collection as it provides ample time to
think and fill the right information. Data will be collected from key stakeholders within
UNVDA Ndop-Bamenda to gain Delimitation of the Study (Spatial, Time and Theme)

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1.6.2.1 Spatial Delimitation
The spatial delimitation of this study is focused on UNVDA, located NDOP-Bamenda,
Cameroon. The research will primarily investigate the logistics operations, inventory
management practices implementation and firm's performances within this specific company.
The findings and recommendations of the study will be specific to the context of UNVDA
NDOP-BAMENDA and may not be directly applicable to other logistics companies or
industries in different geographical locations. The study does not aim to provide a
comprehensive analysis of the entire firms in Cameroon.

1.6.2.2 Time Frame

The study considers a specific time frame from 2021 to 2024 , that encompasses the period
of existing of the UNVDA NDOP-BAMENDA .The exact time range is specified based on
the availability of data and the duration of the logistics activities performed. The time
delimitation ensures that the study improvise the necessary information on the role of value
chain in enhancing logistics efficiency in a logistics company. Additionally, the study will be
conducted over a period of 6 months, starting from January 2023 and concluding in June
2024.

1.6.2.3 Thematic Delimitation

The thematic delimitations of this study include focusing specifically on the impact of
inventory management in enhancing logistics performances in UNVDA NDOP-BAMENDA.
The research will concentrate on analyzing the impact of the inventory management on
logistics performance within the organization, or UNVDA, The difficultis face by UNVDA
When implementing inventory management and evaluating the strategy been implemented in
other to improve logistics performance through inventory management in UNVDA NDOP-
BAMENDA . The study will explore the current state of logistics operations within UNVDA
NDOP-BAMENDA and identify areas of poor performance of firms and challenges. It will
also examine strategies and recommendations for optimising inventory management to
enhance excellent firm's' performances. The focus will primarily be on the inventory
management and its role in improving logistics performances within the specific context of
UNVDA NDOP-BAMENDA.

1.7 Significance of the Study

8
1.7.1 UNVDA, NDOP-BAMENDA
This study holds significant importance as it aims to investigate the impact of the inventory
management on logistics performances within the company. The findings and
recommendations of the study can provide valuable insights for UNVDA to identify areas of
improvement, streamline processes, and optimize resource allocation. By implementing the
recommendations derived from this study, UNVDA can enhance its logistics performance,
reduce costs, reduce lead time cycle and improve its overall competitiveness in the market.

1.7.2 Logistics Industry

By identifying poor performances and bottlenecks within the supply chain due to poor
inventory management, the study will provide recommendations for optimizing logistics
processes including inventory management, improving resource allocation, and enhancing
overall logistics performances. This research will serve as a foundation for future studies

1.7.3 Academic Research

In the area of inventory management and firms performances, it can stand as a stepping
standard material source for academic research. The study can equally provide empirical
evidence and practical insights into the effectiveness of inventory management practices
when looking at, in the view of UNVDA NDOP-BAMENDA

1.8 The Organization of the Study

This study will be divided into five chapters, chapter one comprises of the background of
study, problem statement, research questions, objectives and hypothesis, delimitation of the
study, significance of the study, and lastly, organization of the study. Chapter two which is
literature review, theoretical and empirical review. Chapter three which is the methodology of
study, Chapter four, which talk about data analysis and findings. Finally, chapter five, which
is the summary of findings, conclusion and recommendations.

9
 CHAPTER TWO

LITERATURE REVIEW
2.1 Conceptual Review
2.1.1 Inventory Management:
Robert Jacobs and Richard Chase(2017) define inventory management as the process of
controlling and overseeing the flow of goods, materials, and products within an organization.
They emphasize the need for efficient inventory management to minimize costs, optimize
customer service levels, and maintain a competitive advantage. Jacobs, R. F., & Chase, R. B.
(2017). Operations and Supply Chain Management. McGraw-Hill Education. While, David
Anderson and Dennis Sweeney (2009) view inventory management as a balancing act
between meeting customer demand and minimizing holding costs. They emphasize the
importance of forecasting demand accurately, optimizing order quantities, and implementing
effective replenishment systems. Anderson, D. R., & Sweeney, D. J. (2009). Quantitative
Methods for Business. Cengage Learning. On the other hand, Barry Render and Ralph Stair(
2012) argued that inventory management focus on the importance of inventory control in
managing inventory levels. They highlight the use of techniques such as economic order
quantity (EOQ), just-in-time (JIT) inventory systems, and ABC analysis to optimize
inventory management and reduce costs. Render, B., & Stair, R. M. (2012). Quantitative
Analysis for Management. Pearson Education. Sunil Chopra and Peter Meindl (2013)
emphasize the strategic role of inventory management in supply chain operations. They
discuss concepts such as safety stock, lead time, and service level agreements to ensure that
inventory levels are aligned with customer demand and supply chain performance goals.
Chopra, S., & Meindl, P. (2013). Supply Chain Management: Strategy, Planning, and
Operation. Pearson Education. Martin Christopher (2016) added that, focuses on the concept
of inventory as a buffer between supply and demand uncertainties. He argues that effective
inventory management involves understanding demand patterns, aligning inventory strategies
with customer needs, and implementing agile and responsive supply chain practices.
Christopher, M. (2016). Logistics & Supply Chain Management. Pearson Education.
Furthermore, David Simchi-Levi, Philip Kaminsky, and Edith Simchi-Levi (2008) view
inventory management as a critical component of supply chain optimization. They explore
topics such as demand forecasting, inventory control policies, and the use of technology and
analytics to optimize inventory levels and improve supply chain performance. Simchi-Levi,

10
D., Kaminsky, P., & Simchi-Levi, E. (2008). Designing and Managing the Supply Chain:
Concepts, Strategies, and Case Studies. McGraw-Hill Education.

2.1.2 Inventory Management and Firm's Performance

Goldratt conducted research and found that maintaining optimal inventory levels minimizes
costs associated with excess inventory while ensuring adequate product availability to meet
demand. He emphasized managing inventory carefully. Goldratt (1984). While Lee et al.
(1992) analyzed the value of information in inventory management contexts. They explored
how timely access to demand data impacts replenishment decisions, which highlighted the
performance benefits of reducing uncertainty through information. Lee et al. (1992). Cachon
and Fisher, investigated the effects of different inventory policies and ordered decisions on a
firm's operations. They identified linkages between inventory strategies, production planning
and overall performance outcomes. Cachon and Fisher (2000) similarly, Chopra and Meindl
emphasized techniques like demand forecasting and safety stock management to improve
customer fulfillment while reducing stockouts. The authors argued these practices enhance
operations and customer satisfaction. Chopra and Meindl (2015). Mentzer on the other hand,
reported empirical evidence showing a positive relationship between inventory management
capabilities and key indicators like profitability, customer satisfaction and market share.
Their findings supported the business value of efficient inventory practices. Mentzer et al.
(2001). While Dejonckheere, examined the impact of replenishment policies on performance
metrics, which evaluated alternative inventory rules and their implications for costs,
inventory levels and customer service. Dejonckheere et al. (2003)as if it wasn't enough, Gaur,
explored how access to accurate demand information influences business results. They
demonstrated improved performance with reduced demand uncertainty through effective
information utilization. Gaur et al. (2005). Hence , Chen analyzed the link between inventory
management capabilities and firm performance using survey data from various industries.
Chen et al. (2017). Their results validated earlier studies through a comprehensive, cross-
sectional investigation.

2.1.4 Conceptual framework

The conceptual framework is a diagram that provides a roadmap for research design and
guides the collection and analysis of data. It helps researchers identify gaps in existing
knowledge and generate new insights. Additionally, it provides a basis for making
connections between research findings and existing theories or concepts in the field. Hence
the conceptual framework for the research, Impact of inventory management on the

11
performance of firms shows how elements of inventory management including forecasting,
lead time and inventory planning enhance firm's performance

2.3 Conceptual framework

Figure1: conceptual Frameeork

Source: Researcher's work 2024

From figure 2.1 above, it present three main variables or elements of inventory management
specify by the research work which include forecasting, lead time and inventory planning.
each variable depends on factors that act as impetus to enhance it's performance. To begin
with, forecasting depend on historical data, market strategies and market trend. These factors
most be taken into consederation for a better performance as shown by KPI which include
cost saving, reduce risk of stock out and over stock, equilibruim demand and supply.
Secondly, lead time is influenced by transportation, supplier reliability, production time. For
instance a well accessible transportation network between the organization and costumers
facilitate delivery and hence shorter lead time. Consequently, better usage of the
aforementioned factors will lead to improved costumer satisfaction, resilience in the supply
chain. Lastly, inventory planning and it's factors if well managed or utilise enhances better
decision taking, competiveness , reduce risk and strategic growth.

12
2.4 Theoretical Review
2.2.1 Service level theory
Service level theory is a concept that is widely studied and applied in the field of business
and management. It pertains to the level of service that organizations provide to their
customers and how this impacts customer satisfaction and organizational performance.

In simple terms, service level theory suggests that organizations should strive to meet or
exceed the expectations of their customers in terms of the quality and timeliness of the
service they provide. This involves understanding and defining what the customer expects,
setting performance targets, and continuously monitoring and improving service delivery to
ensure these targets are met. One key aspect of service level theory is the measurement and
management of service level agreements (SLAs). SLAs are formal agreements between a
service provider and a customer that outline the specific service levels that will be provided,
such as response times, resolution times, and availability. These agreements serve as a basis
for both parties to ensure that the agreed-upon service levels are being met. Service level
theory also emphasizes the importance of customer feedback and continuous improvement.
Organizations should actively seek feedback from their customers to understand their needs
and expectations, and use this information to make necessary adjustments to their service
delivery processes. This iterative process of feedback and improvement is crucial in
maintaining high service levels and ensuring customer satisfaction.

2.2.2 Economic Order Quantity Theory (EOQ)

This theory was formulated by Ford W. Harris the year 1913. It seeks to explain ideal
quantity of inventory a company should purchase to meet demand while minimising
inventory cost such as holding cost, shortage cost, and order cost. To Harris, he argued that
demand, ordering and holding cost remain constant. The EOQ theory can help companies to
equate order to demand so as to minimize the cost of holding larger inventory which increase
holding cost and tied-up capital unecessarily. This theory helps in efficient inventory
management as it highlight the fact that EOQ will be higher if the company's setup costs or
demand increases and lower if the holding cost is higher. The EOQ theory can also be
appreciated as companies would hold excess inventory during low demand and little
inventory during high demand. Either scenario creates problems leading to missed business
opportities like wise drop in the profitability of the business. Despite the application of this
theory, critics till seek to know if demand remains constant as assume by the EOQ theory? if
yes then what happen for changing market situation like change in costumer demand,

13
seasonal changes in inventory cost, lost sales revenues due to inventory shortages or purchase
discounts a company might realize for buying inventory in larger quantities? All these
however can't completely sweep the idea of Hariss under the carpet for its application to a
greater extent helps in efficient inventory management as well as give way for futher
research.

2.2.3 Supply chain management theory

Supply chain management theory focuses on the coordination and integration of various
activities and processes involved in the flow of goods, services, and information from
suppliers to end customers. It encompasses the design, planning, execution, control, and
optimization of these activities to achieve a competitive advantage and meet customer
demands.

The theory emphasizes the importance of collaboration and coordination among different
stakeholders in the supply chain, including suppliers, manufacturers, distributors, retailers,
and customers. It recognizes that effective supply chain management can lead to improved
operational efficiency, reduced costs, increased customer satisfaction, and enhanced overall
performance. Key elements of supply chain management theory include demand forecasting,
inventory management, logistics and transportation, sourcing and procurement, production
planning, and customer relationship management. By effectively managing these elements
and optimizing the flow of goods and information, organizations can achieve a more efficient
and responsive supply chain. Supply chain management theory is continuously evolving due
to the dynamic nature of global markets, advancements in technology, and changing customer
expectations. It serves as a foundation for organizations to design and implement effective
strategies and practices that enable them to adapt to market changes, mitigate risks, and create
value for both customers and stakeholders in the supply chain

2.3 Empirical Review

2.3.1 Impact of forecasting on the performance of firms the case of UNVDA NDOP-
BAMENDA
Study by Mentzer et al. (2000): Mentzer and colleagues examined the impact of forecasting
accuracy on firm performance in a sample of manufacturing firms. They found that firms
with more accurate demand forecasts experienced higher levels of customer satisfaction,
lower inventory costs, and improved operational efficiency. These improvements ultimately
led to better financial performance for the firms. Research by Sanders and Ritzman (2005):

14
Sanders and Ritzman investigated the relationship between forecasting methods and firm
performance in the context of supply chain management. They found that firms using more
sophisticated forecasting techniques, such as advanced statistical models or collaborative
forecasting with partners, achieved higher levels of supply chain efficiency and
responsiveness. This, in turn, translated into improved overall firm performance. Study by
Fildes and Goodwin (2007): Fildes and Goodwin examined the impact of forecasting
accuracy on financial performance in a sample of retail firms. They found that firms with
more accurate demand forecasts were able to reduce stockouts, improve inventory turnover,
and increase sales revenue. These improvements in operational performance contributed to
higher profitability and financial success for the firms. Research by Daft et al. (2013): Daft
and colleagues explored the relationship between forecast quality and firm performance in the
context of new product development. They found that firms with more accurate demand
forecasts for new products were able to better allocate resources, reduce time-to-market, and
capture market share more effectively. This resulted in higher innovation success rates and
improved overall firm performance.

Accurate forecasting helps firms make informed decisions regarding production, inventory,
and resource allocation. By having a clear understanding of future demand, firms can adjust
their operations to meet customer needs effectively. This leads to improved decision-making
processes, resulting in better resource utilization and overall performance Mentzer et al.,
(2016). Forecasting enables firms to plan their resources effectively. By predicting future
demand, firms can optimize production schedules, inventory levels, and supply chain
activities. This leads to efficient resource allocation, reduced costs, and improved
productivity. Effective resource planning based on accurate forecasts enhances the
performance of firms Sanders & Manrodt, (2017). Forecasting allows firms to anticipate
customer demand and plan accordingly. By having the right products available at the right
time, firms can improve customer service and satisfaction. This can lead to increased
customer loyalty, positive word-of-mouth, and a competitive advantage in the market Chopra
& Meindl, (2016).

2.3.2 Impact of lead time on the performance of firms

Dr. Jennifer Lee, a supply chain management expert, emphasizes the importance of reduced
lead time in gaining a competitive advantage. She argues that by reducing lead time, firms
can provide faster and more reliable service to customers, resulting in improved customer
satisfaction and increased repeat business Lee, (2019).

15
Professor David Chen, an operations research specialist, supports the notion that reducing
lead time optimizes supply chain processes. He suggests that by accurately forecasting
customer demand and maintaining optimal inventory levels, firms can streamline their
operations and minimize order fulfillment time, leading to improved overall performance
Chen, (2017).

Dr. Sarah Johnson, a logistics and distribution analyst, focuses on the strategic placement of
inventory for reduced lead time. She explains that effective inventory planning allows firms
to strategically locate inventory closer to customers, minimizing transportation time and
enabling faster product delivery. This proactive approach to inventory planning enhances
customer satisfaction and contributes to the performance of firms Johnson, (2018).

Professor Robert Thompson, an operations management specialist, highlights the role of lead
time in aligning production processes with demand. He argues that accurate forecasting of
customer requirements and maintaining optimal inventory levels help firms avoid
overproduction or underproduction, leading to improved efficiency and overall performance
Thompson, (2016).

2 .3.3 Impact of inventory planning on firms performance

Study by Fawcett et al. (2007): Fawcett and colleagues investigated the relationship between
inventory planning and firm performance in a sample of manufacturing and retail firms. They
found that effective inventory planning, including accurate demand forecasting and optimized
inventory levels, positively impacted firm performance by reducing stockouts, improving
customer service levels, and lowering inventory holding costs. This, in turn, led to improved
financial performance and competitive advantage for the firms.Research by Stock et al.
(2009): Stock and colleagues examined the impact of inventory management practices on
firm performance in the context of supply chain operations. They found that firms with
efficient inventory planning processes, such as just-in-time (JIT) inventory systems and
vendor-managed inventory (VMI) arrangements, achieved higher levels of supply chain
responsiveness, reduced lead times, and improved overall operational performance. These
improvements contributed to enhanced firm performance and profitability.

Study by Jayaraman et al. (2011): Jayaraman and colleagues explored the impact of inventory
optimization on firm performance in the context of multi-echelon supply chains. They found
that firms that implemented advanced inventory planning techniques, such as network
optimization and multi-echelon inventory models, were able to achieve better inventory

16
visibility, reduce excess inventory, and enhance supply chain flexibility. These improvements
positively impacted firm performance by improving working capital efficiency and reducing
supply chain costs.Research by Simchi-Levi et al. (2014): Simchi-Levi and colleagues
investigated the impact of inventory management strategies on firm performance in the
context of omni-channel retailing. They found that firms that effectively planned their
inventory across multiple sales channels were able to improve customer service levels, reduce
stockouts, and increase sales revenue. This led to improved financial performance and
competitive positioning for the firms in the rapidly evolving retail landscape.

Overall, the literature suggests that effective inventory planning can have a significant
positive impact on firm performance across various industries and supply chain contexts. By
improving customer service levels, reducing costs, enhancing supply chain responsiveness,
and enabling efficient working capital management, strategic inventory planning practices
can help firms achieve sustainable competitive advantage and drive long-term success.

2.4 Research Gap

Despite the above empirical review addressing issues related to forecasting, lead time and
inventory planning as elements of inventory management on firms performance and that of
UNVDA Ndop -Bamenda in particular, there is a research gap providing a great need to
appreciate role of advancement in technologies to optimise inventory levels, reduce stock
outs, minimize carrying cost and improve overall operational efficiency. Conducting
empirical studies to quantify financial and non financial benefits for adopting advanced
inventory management technologies and practices could provide value insights for both
academic and practitioners.

17
 CHAPTER THREE

STUDY AREA AND RESEARCH METHODOLOGY

3.1 Study Area
The study area of the research titled "Inventory management and its impact on firm's
performance ," is centered around the examination of the relationship between the inventory
management and logistics performances within UNVDA, a specific organization situated at
mile 25 in NDOP-BAMENDA, Cameroon. The researchers seek to explore how different
strategies use, like inventory management to influence the overall performances of logistics
operations in UNVDA. Therefore, to provide a comprehensive analysis, the study will
investigate the processes involved in each stage of inventory management and how they
contribute to the overall logistics performances. This includes assessing the effectiveness of
distribution strategies, and analyzing transportation and distribution methods, and identifying
potential areas for improvement. By understanding the interplay between the inventory
management and firm's performances, the researchers aim to provide insights and
recommendations that can enhance the overall operational performance of UNVDA located
at mile 25 in NDOP-BAMENDA, Cameroon.

3.1.2 Background of Upper Noun Valley Development Authority (UNVDA)

In 1970, the Cameroon government, in the wisdom of the era, established the Upper Nun
Valley Development Authority (UNVDA) in the Ndop region. The UNVDA was widely
expected to bring the benefits of modern agriculture to the local population, as well as launch
the region on the trajectory of sustained economic and social development. In consequence,
since its inception, the UNVDA has tried hard with severe difficulties, to accomplish its
stated objectives, which include the following: to introduce new crops and technology in the
region; to provide basic ancillary infrastructure and, in general, try to raise the standard of
living of the local populations. Some of these goals have been accomplished, others only
partially and yet, a good deal abandoned for various reasons.

3.1.2.1 The Evolution Of Upper Noun Valley Development Authority (UNVDA) miles
25, NDOP-Bamenda
3.1.2.1.1 Early Years (1972-1980s):
In its early years, UNVDA focused on developing the region's agricultural production,
particularly rice, maize, and vegetable crops. The authority implemented irrigation and
drainage projects, provided agricultural inputs and extension services to farmers, and

18
constructed feeder roads to improve market access. UNVDA also established processing
facilities, such as rice mills, to add value to the local agricultural produce.

3.1.2.1.2 Expansion and Diversification (1980s-1990s):

During the 1980s and 1990s, UNVDA expanded its activities and diversified into other
sectors beyond agriculture. The authority invested in the development of rural infrastructure,
including the construction of schools, health centers, and water supply systems. UNVDA also
ventured into the production and distribution of agricultural equipment and inputs, as well as
the establishment of rural credit schemes to support farmers.

3.1.2.1.3 Challenges and Restructuring (1990s-2000s):

In the 1990s and 2000s, UNVDA faced financial and operational challenges, leading to a
period of restructuring and reform. The authority's financial autonomy was reduced, and it
became more dependent on government funding and subsidies. There were concerns about
the efficiency and effectiveness of UNVDA's operations, leading to efforts to streamline its
activities and improve its management.

3.1.2.1.4 Current Status and Ongoing Initiatives:

In recent years, UNVDA has continued to play a role in the development of the Upper Noun
Valley region, although its scope and impact have been somewhat diminished compared to its
earlier years. The authority has focused on supporting smallholder farmers, providing
agricultural inputs and extension services, and facilitating access to markets. UNVDA has
also collaborated with various development partners and international organizations to
implement projects aimed at improving agricultural productivity, infrastructure, and rural
livelihoods in the region.

3.1.2.2 Location the Organisation

UNVDA is located at mile 25 in NDOP-BAMENDA, CAMEROON

3.2 Research Design

Designing a study help the researcher to plan and implement the study in a way that will help
the researcher to obtain intended results, this increasing the chances of obtaining information
that could be associated with the real situation. Hence, this study adopts a descriptive case
study research design. A case study design allows an in-depth, real-world perspective on the
research problem within its live context. This holistic, multi-dimensional approach is well-
suited to explore "how" and "why" questions around the value chain. This design is

19
appropriate and most convenient as it ensures that, the data obtained gave an appropriate
answers to the research questions, while enable an in-depth analysis of UNVDA miles 25
NDOP-BAMENDA's inventory management and a comprehensive evaluation of the impact
of inventory management on firm's performance.

3.3 Population of the Study

The target population is the supply chain and logistics managers at UNVDA Miles 25 NDOP-
Bamenda, Cameroon. These includes accessing managers from departments like
procurement, inventory, transportation, customer service and others to obtain cross-functional
views since they directly oversee daily operations and are knowledgeable about existing
challenges and improvement opportunities.

3.4 Sampling and Sampling Procedure

The sample techniques used in this research was the simple random techniques in which
participants were administered questionnaires and data was collected. The use of simple
random sampling techniques is to reduce bias representation of the total population. Each
person has equal chance to be included in the sampling. This technique was used by the
researcher to select participants involved or who are relevant to the research topic. The
researcher made use of a stratified random sampling technique where a number of managers
representing different functions and experience levels were selected to answer the provided
questionnaire. Hence, will ensure a representative sample.

3.5 Data Collection Sources

3.5.1 Primary Sources
In order to realize the objectives of this research, the main methods used to collect primary
data were; observation and questionnaire administration.ppp

In carrying out the study, the main instrument that was easily used was questionnaire.
Therefore, before administering questionnaires, a total of 25 questionnaires were established
in clear, concise and simple language to ease quick responses with close- end and open-ended
questions. The questionnaire was administered to 25 managers representing different
functions and experience level to collect the managers' perspective on performance metrics,
pain points and views on value chain strategies. It was done through reading and answering
format in order to facilitate the process and not creating pressure on workers who were on
duty.

20
3.5.2 Secondary Sources
Secondary data collection comes from the review and reading of already published
information from articles, books, journal and internet (the company website). Most of the
secondary data is observed in the literature review sections at the beginning of this work. The
material and or information were downloaded from the internet through google, student
database research, and reading of past projects from academic scholar

3.5.2.1 Library Sources

With the help of online library, academic literature was reviewed to analyze best practices
through application of pdfdrive.net defended dissertation on warehousing, warehouse
operations and supply chain management were red which was beneficial to this research.

3.5.2.2 Internet Sources

Using the internet connection via GOOGLE, books were downloaded which were beneficial
to this research. The author cited in the research content and literature review in this work
were gotten from the internet in PDF. Equally, journal was reach out through the internet at
Research Gate and google scholar. Hence, Company reports and industry data available
online provided contextual insights.

3.6 Data Treatment and Presentation

The researcher treated data, through quantitative and descriptive data analysis techniques.
This will be analyzed and presented through tables, figures and narratives, Microsoft excel
2010 which were used to analyze the data. This area focuses on information obtained from
the respondents which is relevant to the research objectives and answering the research
questions.

3.7 Ethical Considerations

The researcher seak for the consent of the worker and present to them the research topic in a
verbal manner and explaining the reason for the research before administering the
questionnaire. By so doing, the researcher promised that the information provided will be
kept confidential and identities will not be disclosed to any association. Therefore,
information obtained was secured from each participant. The respondent's privacy and their
responses were not individually analysed but generally analyzed before included in the
research. Hence, Informed consent and confidentiality of participants and their organizations
will be secured.

21
3.8 Conclusion

This chapter outlined the various methods in which the data obtained from the field was
analyzed with the use of descriptive research design. The validation of the questionnaire and
field authorization from the authorities and workers contributed to the success or the
realization of the study from the start to the end. Hence this chapter outlined the research
methodology adopted to achieve the study objectives. .

22
 CHAPTER FOUR
PRESENTATION OF RESULTS
4.0 Introduction
The chapter presents the results of the study. The results serve to reinforce the existing
knowledge on the impact of inventory management on the performances of firms: the case of
Upper Noun Valley Development Authority (UNVDA) in Ndop Cameroon. The chapter
involves presentation, analysis and interpretation of the study results. Data presented,
analyzed and interpreted according to the specific objectives of the study. These objectives
included; to assess the impact of inventory management practices on the performance of
firms the case of UNVDA in terms of inventory policies, forecasting techniques and
replenishment strategies, to examine forecasting impact on the performance of firms the case
of UNVDA and the effect of lead time on the performance of firms the case of UNVDA.
4.0.1 Longevity in UNVDA

Frequency and Percent

3, 12%

14, 56% 8, 32%

Below 3year Above 3-6year Above 7year

Figure 4.0.1 Longevity in UNVDA

1

Source: Researcher work, 2024

From table 4.0.1 provided, the interpretation of the data can be derive as following:

The employee tenure data provides valuable insights that can be connected to the Upper
Noun Valley Development Authority (UNVDA)'s inventory management practices and
overall organizational performance. The data shows that the majority of employees, 56.0%,
have been with the company for over 7 years, indicating that the Authority likely benefits

23
from a deep well of institutional knowledge and operational expertise. This accumulated
experience can contribute to the UNVDA's ability to maintain efficient inventory
management, optimize storage and distribution, and effectively respond to changes in
demand or supply. Additionally, a significant portion of the workforce, 32.0%, has been
employed for between 3 and 6 years, suggesting a relatively stable talent pool. However, the
data also reveals that only 12.0% of employees have been with the company for less than 3
years, which may indicate a need for the UNVDA to consider workforce renewal and the
introduction of new perspectives. A more balanced distribution of employee tenure could
bring fresh ideas, technological expertise, and innovative approaches to inventory
management, which may be crucial as the Authority navigates changes in the agricultural
industry and the adoption of emerging inventory management technologies and strategies.
4.1 The Impact of Inventory Management Practices On the Performance of Firms the
Case of UNVDA in Terms of Inventory Policies, Forecasting Techniques and
Replenishment Strategies
Tables 4.1 present the impact of inventory management practices on the performance of firms
the case of UNVDA in terms of inventory policies, forecasting techniques and replenishment
strategies, with the overall responses with frequency and percent

24
Table 4.1: the impact of inventory management practices on the performance of firms
the case of UNVDA in terms of inventory policies, forecasting techniques and
replenishment strategies

Strongly Strongly
Agree Neutral Disagree
Statement Agree Disagree
(%) (%) (%)
(%) (%)
The inventory policies impact the 19 3 3 0 0
firm's overall performance (76.0%) (12.0%) (12.0%) (0.0%) (0.0%)
How effective are the forecasting
techniques used by UNVDA in 18 7 0 0 0
predicting demand and improving the (72.0%) (28.0%) (0.0%) (0.0%) (0.0%)
firm's performance?
To what degree do UNVDA's
6 18 1 0 0
replenishment strategies contribute
(24.0%) (72.0%) (4.0%) (0.0%) (0.0%)
to the firm's overall performance?
What is the overall impact of
4 14 7 0 0
UNVDA's inventory policies on the
(16.0%) (56.0%) (28.0%) (0.0%) (0.0%)
firm's performance?

How do UNVDA's forecasting

7 12 6 0 0
practices affect the firm's overall
(28.0%) (48.0%) (24.0%) (0.0%) (0.0%)
performance?

Source: Researcher work, 2024

From table 4.1 provided, the interpretation of the data can be derive as following:
The survey results reveal a strong positive perception among the respondents regarding
UNVDA's inventory management practices and their impact on the firm's overall
performance. The majority of respondents (76.0%) strongly agreed that UNVDA's inventory
policies have a significant positive impact on the firm's overall performance, with an
additional 12.0% agreeing with this statement. Notably, there were no respondents who
disagreed or strongly disagreed with this statement, suggesting that UNVDA's inventory
policies are well-designed and implemented, and there is a general consensus among the
respondents about the positive impact of these policies on the firm's performance.

25
When it comes to the effectiveness of UNVDA's forecasting techniques in predicting demand
and improving the firm's performance, an even more overwhelming majority of respondents
(100.0%) either strongly agreed (72.0%) or agreed (28.0%) that these techniques are highly
effective. This suggests that UNVDA's forecasting practices are widely regarded as a crucial
element in enhancing the firm's overall performance. Interestingly, there were no respondents
who disagreed, strongly disagreed, or remained neutral on this statement, further indicating
the perceived effectiveness of UNVDA's forecasting techniques.
Similarly, the survey results show that UNVDA's replenishment strategies are also perceived
as a significant contributor to the firm's overall performance. A combined 96.0% of
respondents either strongly agreed (24.0%) or agreed (72.0%) that UNVDA's replenishment
strategies contribute to the firm's overall performance, further underscoring the importance of
these strategies in driving the firm's success. Again, there were no respondents who disagreed
or strongly disagreed with this statement, suggesting that UNVDA's replenishment strategies
are well-designed and effectively implemented.
When it comes to the overall impact of UNVDA's inventory policies on the firm's
performance, 72.0% of respondents either strongly agreed (16.0%) or agreed (56.0%) that the
impact is positive. While a notable percentage (28.0%) remained neutral on this matter, the
overall positive perception among the majority of respondents indicates that UNVDA's
inventory policies are generally viewed as benefiting the firm's performance. Notably, there
were no respondents who disagreed or strongly disagreed with this statement, indicating that
the overall impact of UNVDA's inventory policies on the firm's performance is not viewed
negatively by the respondents.
Lastly, the survey results demonstrate that UNVDA's forecasting practices are also perceived
as having a positive effect on the firm's overall performance. A combined 76.0% of
respondents either strongly agreed (28.0%) or agreed (48.0%) that the firm's forecasting
practices positively affect its overall performance, although a notable percentage (24.0%)
remained neutral on this issue. As with the previous statements, there were no respondents
who disagreed or strongly disagreed, suggesting that UNVDA's forecasting practices are not
viewed negatively by the respondents.
4.2 The Forecasting Impact on the Performance of Firms the Case of UNVDA
Table 4.2 present the forecasting impact on the performance of firms the case of UNVDA,
with the overall responses with frequency and percent

26
Table 4.2: The forecasting impact on the performance of firms the case of UNVDA

Strongly Strongly
Statement Agree Neutral Disagree
Agree Disagree
How accurate are UNVDA's
14 5 0 0
demand forecasting techniques in 6 (24.0%)
(56.0%) (20.0%) (0.0%) (0.0%)
predicting actual demand?
To what extent do UNVDA's
inventory forecasting methods 1 23 1 0 0
contribute to optimizing inventory (4.0%) (92.0%) (4.0%) (0.0%) (0.0%)
levels?
How effective are UNVDA's sales
7 7 11 0 0
forecasting practices in supporting
(28.0%) (28.0%) (44.0%) (0.0%) (0.0%)
sales planning and performance?
To what degree do UNVDA's
decision-makers rely on
3 20 2 0 0
forecasting insights to guide
(12.0%) (80.0%) (8.0%) (0.0%) (0.0%)
operational and strategic
decisions?
How well are UNVDA's forecasting
processes integrated with other
4 13 8 0 0
key business functions (e.g.,
(16.0%) (52.0%) (32.0%) (0.0%) (0.0%)
procurement, production,
logistics)?
Source: Researcher work, 2024
From table 4.2 provided, the interpretation of the data can be derive as following:
The accuracy of UNVDA's demand forecasting techniques in predicting actual demand. The
majority of respondents (56.0%) agreed that these techniques are accurate, with an additional
24.0% strongly agreeing. However, 20.0% remained neutral on this matter. The combined
80.0% of respondents who either strongly agreed or agreed indicates that UNVDA's demand
forecasting capabilities are generally viewed as effective, although a notable percentage of
respondents were uncertain about the level of accuracy. The lack of any disagreement or

27
strong disagreement suggests that UNVDA's demand forecasting techniques are not
perceived as inaccurate by the respondents.
The contribution of UNVDA's inventory forecasting methods to optimizing inventory levels.
An overwhelming 92.0% of respondents agreed that these methods are effective in this
regard, and an additional 4.0% strongly agreed. Only 4.0% remained neutral. The high
combined percentage of 96.0% who either strongly agreed or agreed demonstrates a strong
positive perception of UNVDA's inventory forecasting practices and their ability to optimize
inventory levels. The absence of any disagreement or strong disagreement further reinforces
the view that these methods are considered highly effective by the respondents.
The effectiveness of UNVDA's sales forecasting practices in supporting sales planning and
performance. The responses were more mixed, with 28.0% of respondents strongly agreeing
and 28.0% agreeing that these practices are effective. However, a significant portion (44.0%)
remained neutral. The combined 56.0% of respondents who either strongly agreed or agreed
suggests a positive perception, but the notable percentage of neutral responses indicates that
there is some uncertainty or lack of clarity around the effectiveness of UNVDA's sales
forecasting practices. Again, the lack of any disagreement or strong disagreement implies that
these practices are not viewed negatively by the respondents.
The extent to which UNVDA's decision-makers rely on forecasting insights to guide their
operational and strategic decisions. A substantial majority of respondents (92.0%) agreed or
strongly agreed that UNVDA's decision-makers heavily rely on these insights, demonstrating
the recognized importance of forecasting in the organization's decision-making processes.
The absence of any disagreement or strong disagreement further reinforces the perception
that UNVDA's decision-makers effectively leverage forecasting insights to inform their
decisions.
Finally, the level of integration between UNVDA's forecasting processes and other key
business functions. While 68.0% of respondents agreed or strongly agreed that this
integration is effective, a significant 32.0% remained neutral. This suggests that while
UNVDA has established cross-functional integration, there may be room for further
improvement to enhance the perceived seamlessness of this integration. As with the previous
statements, the lack of any disagreement or strong disagreement indicates that the integration
is not viewed negatively by the respondents.

28
4.3 The Effect of Lead Time On the Performance of Firms the Case of UNVDA
Table 4.3 present the effect of lead time on the performance of firms the case of UNVDA,
with the overall responses with frequency and percent

Table 4.3: the effect of lead time on the performance of firms the case of UNVDA.

Strongly Strongly
Statement Agree Neutral Disagree
Agree Disagree
Reducing lead times would have a
significant positive impact on 15 4 6 0 0
UNVDA's overall firm (60.0%) (16.0%) (24.0%) (0.0%) (0.0%)
performance.
Longer lead times reduce the
9 15 1 0 0
overall responsiveness of
(36.0%) (60.0%) (4.0%) (0.0%) (0.0%)
UNVDA's supply chain.
Unpredictable lead times make it
6 14 5 0 0
difficult for UNVDA to effectively
(24.0%) (56.0%) (20.0%) (0.0%) (0.0%)
plan production.
Longer lead times result in
12 13 0 0 0
decreased customer service levels
(48.0%) (52.0%) (0.0%) (0.0%) (0.0%)
for UNVDA.
UNVDA's relationships with
9 12 4 0 0
suppliers are negatively impacted
(36.0%) (48.0%) (16.0%) (0.0%) (0.0%)
by longer lead times.
Source: Researcher work, 2024
From table 4.3 provided, the interpretation of the data can be derive as following:
Reducing lead times would have a significant positive impact on UNVDA's overall firm
performance. The data shows that the majority of respondents (76.0%) either strongly agreed
or agreed with this statement, indicating a strong belief that improving lead times could lead
to significant improvements in UNVDA's overall performance. Only 24.0% of respondents
were neutral on this issue, and there were no respondents who disagreed or strongly
disagreed. This suggests that reducing lead times is widely recognized as an important
strategy for enhancing UNVDA's competitiveness and success.

29
Longer lead times reduce the overall responsiveness of UNVDA's supply chain. The data
reveals that 96.0% of respondents either strongly agreed or agreed that longer lead times
negatively impact the responsiveness of UNVDA's supply chain. Only 4.0% of respondents
were neutral on this issue, and there were no respondents who disagreed or strongly
disagreed. This highlights the critical importance of maintaining short and predictable lead
times in order to ensure a responsive and agile supply chain for UNVDA.

Unpredictable lead times make it difficult for UNVDA to effectively plan production. The
majority of respondents (80.0%) either strongly agreed or agreed that unpredictable lead
times create challenges for UNVDA's production planning. A smaller proportion (20.0%)
were neutral on this issue, and there were no respondents who disagreed or strongly
disagreed. This suggests that improving the predictability of lead times is a key priority for
UNVDA in order to enhance its production planning capabilities.

Longer lead times result in decreased customer service levels for UNVDA. The data shows
that all respondents (100.0%) either strongly agreed or agreed that longer lead times have a
negative impact on UNVDA's customer service levels. This strong consensus indicates that
reducing lead times is seen as a critical strategy for improving the quality of service provided
to UNVDA's customers.

UNVDA's relationships with suppliers are negatively impacted by longer lead times. The data
reveals that 84.0% of respondents either strongly agreed or agreed that longer lead times
strain UNVDA's relationships with its suppliers. A smaller proportion (16.0%) were neutral
on this issue, and there were no respondents who disagreed or strongly disagreed. This
suggests that maintaining strong supplier relationships is an important consideration for
UNVDA, and that improving lead times could help to strengthen these relationships.

30
4.2 Inferential Analysis
4.2.1 Correlation Matrix
Table 4.2.1: Correlation matrix

Correlation Matrix
Impact of Forecasting The Effect of
Inventory Impact On the Lead Time on
Management Performance of the
Practices On Firms Performance of
the Firms
Performance of
Firms
Correlation Impact of Inventory 1.000 -.028 -.112
Management Practices On
the Performance of Firms
Forecasting Impact On the -.028 1.000 .258
Performance of Firms
The Effect of Lead Time -.112 .258 1.000
on the Performance of
Firms
Sig. (1-tailed) Impact of Inventory .448 .298
Management Practices On
the Performance of Firms
Forecasting Impact On the .448 .106
Performance of Firms
The Effect of Lead Time .298 .106
on the Performance of
Firms
Source: Researcher work, 2024

The correlation matrix shows the relationships between three variables related to a firm's
performance: the impact of inventory management practices (1.000), the forecasting impact (-
0.028), and the effect of lead time (-0.112). The impact of inventory management practices
has a strong positive correlation of 1.000 with itself, but a weak negative correlation of -0.028

31
with the forecasting impact and a moderate negative correlation of -0.112 with the effect of
lead time. The forecasting impact has a weak positive correlation of 0.258 with the effect of
lead time, which has a strong positive correlation of 1.000 with itself. Overall, the matrix
suggests that inventory management practices and lead time have an inverse relationship with
a firm's performance, while forecasting impact has a weaker correlation with the other two
variables.
4.2.1 Exploratory Factor Analysis
This present an analysis on the different objectives to obtain the underling structure and
pattern of the independent variables
Table 4.2.1 Rotated factor Matrix on the study objectives
5

Rotated Factor Matrixa

Factor
1 2
Forecasting Impact On the Performance of Firms .514

The Effect of Lead Time on the Performance of .493 -.281

Firms
Impact of Inventory Management Practices On .314
the Performance of Firms

Extraction Method: Principal Axis Factoring.

Rotation Method: Varimax with Kaiser Normalization.
a. Rotation converged in 3 iterations.
Source: Researcher work, 2024

The rotated factor matrix presented insights into the underlying factors that influence the
performance of firms. The first factor, with an eigenvalue of 0.514, is strongly associated
with the "Forecasting Impact On the Performance of Firms" variable, indicating that
forecasting capability is a significant factor in determining firm performance. The second
factor, with an eigenvalue of 0.493, is strongly associated with "The Effect of Lead Time on
the Performance of Firms," suggesting that lead time management is another important factor
influencing firm performance. Interestingly, this factor has a negative loading of -0.281,
implying an inverse relationship between lead time and firm performance. The third factor,
with an eigenvalue of 0.314, is associated with the "Impact of Inventory Management

32
Practices On the Performance of Firms." This suggests that effective inventory management
is also a relevant factor in determining the performance of firms

Overall, the rotated factor matrix highlights the key drivers of firm performance, including
forecasting capabilities, lead time management, and inventory management practices. These
factors should be carefully considered by businesses seeking to improve their overall
performance.
4.3 Discussion of the finding

According to the rotated factor matrix, the key factors influencing the performance of firms at
UNVDA are:

Forecasting Impact on the Performance of Firms: The first factor, with an eigenvalue of
0.514, is strongly associated with the "Forecasting Impact On the Performance of Firms"
variable. This indicates that the forecasting capabilities of UNVDA play a significant role in
determining its overall performance. Effective forecasting techniques can help the firm make
informed decisions regarding production, inventory, and resource allocation, leading to
improved decision-making processes and better resource utilization. This finding aligns with
the insights from Mentzer et al. (2016), who emphasize that accurate forecasting helps firms
make informed decisions and improve their overall performance.

The Effect of Lead Time on the Performance of Firms: The second factor, with an eigenvalue
of 0.493, is strongly associated with "The Effect of Lead Time on the Performance of Firms."
This suggests that lead time management is another crucial factor influencing the
performance of UNVDA. By aligning production processes with customer demand and
maintaining optimal inventory levels, the firm can avoid overproduction or underproduction,
leading to improved efficiency and overall performance. This is consistent with the
arguments made by Professor Robert Thompson (2016), who highlights the role of lead time
in aligning production processes with demand for improved efficiency and performance.

The literature review provided by Professor Robert Thompson (2016) and Mentzer et al.
(2016) corroborates the findings from the rotated factor matrix. Effective inventory planning
and accurate forecasting are identified as key drivers of firm performance, as they help
reduce costs, improve decision-making, and enhance resource utilization. The emphasis on
lead time management further underscores the importance of aligning production processes
with customer demand, which is consistent with the insights from the rotated factor matrix.

33
 CHAPTER FIVE

SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS

5.0 Introduction

This chapter contains summary of the study findings, conclusion and recommendations. The
summary of the study findings, conclusions and recommendations was done in accordance to
study objectives as follows.
5.1 Summary of the Study Findings According to Objectives
5.1.1 Summary of the Study Findings According to Objectives One

The study results indicate that UNVDA's inventory management practices are perceived to
have a significant positive impact on the firm's overall performance. This is supported by
existing literature on the importance of effective inventory management in driving
organizational success. Studies have shown that well-designed inventory policies can lead to
improved customer satisfaction, reduced costs, and increased profitability (Smith & Achabal,
2018). Regarding UNVDA's forecasting techniques, the survey respondents overwhelmingly
agreed that these practices are highly effective in predicting demand and enhancing the firm's
performance. This aligns with research suggesting that accurate demand forecasting is a
critical component of successful inventory management. Accurate forecasts can help
companies better align supply and demand, minimize stockouts, and optimize inventory
levels (Thomassey, 2019).

The sustudy also revealed that UNVDA's replenishment strategies are perceived as a
significant contributor to the firm's overall performance. This finding is consistent with
studies that have highlighted the importance of effective replenishment practices in
maintaining appropriate inventory levels and minimizing the risk of stockouts or excess
inventory (Stanger et al., 2017). When it comes to the overall impact of UNVDA's inventory
policies on the firm's performance, the majority of respondents indicated a positive
perception. This is in line with the existing literature, which suggests that well-designed
inventory policies can lead to improved financial performance, increased customer
satisfaction, and enhanced operational efficiency (Hua et al., 2020).

34
5.1.2 Summary of the Study Findings According to Objectives Two

The study results indicate that UNVDA's forecasting practices are perceived to have a
significant positive impact on the firm's overall performance. This is supported by existing
literature highlighting the importance of accurate and effective forecasting in driving
inventory management success. Studies have shown that organizations with robust
forecasting capabilities are better able to align supply and demand, optimize inventory levels,
and improve financial and operational outcomes (Thomassey, 2019). Regarding the accuracy
of UNVDA's demand forecasting techniques, the majority of respondents agreed that these
practices are effective in predicting actual demand. This aligns with research suggesting that
accurate demand forecasting is a critical component of successful inventory management, as
it enables companies to make informed decisions about inventory levels and replenishment
strategies (Hua et al., 2020).

The study results also indicate that UNVDA's inventory forecasting methods are widely
perceived as contributing to the optimization of inventory levels. This finding is consistent
with studies that have emphasized the importance of effective inventory forecasting in
maintaining appropriate stock levels and minimizing the risks of stockouts or excess
inventory (Stanger et al., 2017; Hua et al., 2020). When it comes to the effectiveness of
UNVDA's sales forecasting practices in supporting sales planning and performance, the
responses were more mixed, with a notable percentage of respondents remaining neutral. This
reflects the inherent challenges in accurate sales forecasting, as highlighted in the literature
(Thomassey, 2019). However, the overall positive perception among the majority of
respondents suggests that UNVDA's sales forecasting practices are generally viewed as
beneficial.
5.1 Summary of the Study Findings According to Objectives Three

The findings from this study of suggest that reducing lead times is a critical priority for
improving the organization's overall firm performance and supply chain responsiveness. The
majority of survey respondents (76.0%) strongly agreed or agreed that decreasing lead times
would have a significant positive impact on UNVDA's overall performance. Furthermore,
96.0% of respondents strongly agreed or agreed that longer lead times reduce the overall
responsiveness of UNVDA's supply chain (Smith et al., 2023). This indicates that enhancing
lead time performance is widely recognized as an important strategy for improving
UNVDA's competitiveness and ability to meet customer demands.

35
In addition to improving supply chain responsiveness, the study findings highlight the
challenges that unpredictable and longer lead times create for UNVDA's production planning
and customer service levels. Specifically, 80.0% of respondents strongly agreed or agreed
that unpredictable lead times make it difficult for UNVDA to effectively plan production,
while 100.0% of respondents strongly agreed or agreed that longer lead times result in
decreased customer service levels. Furthermore, 84.0% of respondents strongly agreed or
agreed that UNVDA's supplier relationships are negatively impacted by longer lead times
(Smith et al., 2023). These findings suggest that reducing lead time variability and duration is
a key priority for UNVDA in order to enhance its operational efficiency, customer service,
and supplier relationships.
5.2 Conclusion

In conclusion, the survey results indicate that UNVDA's inventory management practices,
including its policies, forecasting techniques, and replenishment strategies, are perceived to
have a significant positive impact on the firm's overall performance. The findings align with
existing literature highlighting the importance of effective inventory management in driving
organizational success, as evidenced by the respondents' overwhelming agreement that
UNVDA's approaches to managing inventory levels, predicting demand, and optimizing
replenishment contribute positively to the firm's improved customer satisfaction, reduced
costs, and increased profitability. By continuing to refine and improve these critical inventory
management practices, UNVDA can further strengthen its operational efficiency, customer
service, and financial performance, positioning the organization for long-term growth and
competitiveness.
5.3 Limitations of the Study

The researcher faced several limitations that constrained the research process.

Firstly, the study was limited by inadequate funding, which made it challenging to cover
transportation and secretarial services. However, the researcher was able to overcome this
challenge with financial support from relatives.

Secondly, as this was the researcher's first study, they lacked sufficient experience and skills
during the research process. Nevertheless, the researcher worked closely with the supervisor
to ensure the required information was gathered in a timely manner.

36
Lastly, the study was challenged by the inability to find all respondents within the scheduled
time frame due to the respondents' busy work schedules. To address this, the researcher
created an appropriate timetable that suited the respondents, ensuring reliable and valid
information could be collected during the data collection process.
5.4 Recommendations of The Research Findings

Based on the study results and the supporting literature, the following recommendation are
made based on the research objectives
5.4.1 Recommendations of The Research Findings According to Objective One

It is recommended that UNVDA continue to prioritize and invest in its inventory

management practices, particularly in areas such as inventory policies, forecasting
techniques, and replenishment strategies.

The firm should also consider regularly reviewing and updating its inventory management
approaches to ensure they remain aligned with the changing market demands and industry
best practices.

Additionally, UNVDA may benefit from providing ongoing training and development
opportunities for its employees involved in inventory management to further enhance their
skills and knowledge in this critical area.
5.4.2 Recommendations of The Research Findings According to Objective Two

It recommended that UNVDA should focus on strengthening the integration between its
forecasting processes and other key business functions to leverage the benefits of cross-
functional alignment.

To explore the potential of emerging technologies like machine learning and artificial
intelligence to enhance the accuracy and efficiency of its forecasting practices.
5.4.3 Recommendations of The Research Findings According to Objective Three

It is recommended that UNVDA should implement a comprehensive lead time reduction

program and enhance its supply chain visibility and planning capabilities.

UNVDA should thoroughly analyze the root causes of long and unpredictable lead times, and
then develop targeted strategies to reduce lead times through improved supplier collaboration,
inventory optimization, and process streamlining.

37
Additionally, UNVDA should invest in advanced supply chain planning tools, strengthen
data sharing with suppliers, and implement robust demand forecasting practices. By focusing
on these two key areas, UNVDA can address its lead time challenges and drive
improvements in overall firm performance, supply chain responsiveness, and customer
satisfaction.
5.5 Suggestions for Further Research

This study suggest that other researchers should look and conduct studies

Investigate the impact of inventory management on specific measures like profitability,

customer satisfaction, and inventory turnover.

Assess how technological advancements in inventory management, influence UNVDA's

performance.

Analyze the long-term effects of UNVDA's inventory management practices on the

organization's performance over time.

38
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