Inventory Management Practices and Operational Efficiency of Manufacturing Firms in Enugu-Nsukka Industrial Axis

Effective inventory management remains one of the most consequential operational decisions confronting manufacturing enterprises, particularly in resource-constrained economies where supply chain disruptions are frequent. This study examines the relationship between inventory management practices and the operational efficiency of manufacturing firms along the Enugu-Nsukka industrial axis. The research is grounded in the Economic Order Quantity (EOQ) Model and the Just-In-Time (JIT) inventory philosophy, both of which emphasise cost minimisation and waste reduction as pathways to operational excellence. A cross-sectional survey design was adopted. The study population comprised 178 production managers, procurement officers, and operations supervisors in 24 manufacturing firms within the study corridor. Using simple random and purposive sampling methods, 124 respondents were selected. Data were gathered through a validated structured questionnaire and complemented by documentary analysis of production records. Regression and analysis of variance (ANOVA) techniques were used to analyse the collected data. Results show that timely stock replenishment, accurate demand forecasting, and effective warehouse management significantly improve production cycle times and reduce material wastage. The findings also confirm that firms applying JIT principles record lower holding costs and fewer stockout incidences compared to firms relying on traditional reorder point systems. It is concluded that inventory management is a strategic lever for improving operational efficiency and competitiveness in the Nigerian manufacturing sector. Firms are therefore recommended to invest in enterprise resource planning (ERP) systems and train procurement staff in modern inventory optimisation techniques.

Keywords: Inventory management, operational efficiency, manufacturing firms, Just-In-Time, supply chain