INVENTORY PLANNING AND ORGANIZATIONAL PERFORMANCE IN DRILLING FLUID AND CHEMICAL INDUSTRY LTD, RIVERS STATE

Abstract

This study assessed the relationship between inventory planning and organizational performance in Drilling Fluid and Chemical Industry Ltd. The study was conceptualized given the dimensions of   inventory planning as forward weeks of supply, stock to sales and inventory turnover while organizational performance was measured in terms of productivity, profitability and customer satisfaction. Three (3) objectives, Three (3) research questions were raised and three (3) hypotheses guided the study. The study adopted a descriptive survey research design to assess the correlation between inventory planning and organizational performance. The population of the study was 791 employees of Drilling Fluid and Chemical Industry Ltd, where a sample size of 265 was drawn. Stratified random sampling method was used in selecting the respondents. A self-administered structured questionnaire was distributed to respondents. Mean Standard deviation and percentages were used to analyze responses from the questionnaire while Pearson’s product momentum correlation coefficient was used to test all the hypotheses. For the data analysis, SPSS (23.0) was used. The findings of this research revealed that there is a statistically significant relationship between inventory planning and organizational performance in Drilling Fluid and Chemical Industry Ltd, the study thus, concludes that a significant relationship exist between inventory planning and organizational performance. Based on these findings a number of recommendations were made amongst which is the implementation of policies that will improve the Inventory Planning of in Drilling Fluid and Chemical Industry Ltd.