An empirical analysis of inventory turnover behaviour in Greek retail sector: 2000–2005

Kolias, Georgios; Dimelis, Sophia; Filios, Vasilios P.

doi:10.1016/j.ijpe.2010.04.026

Cited by 61 publications

(58 citation statements)

References 45 publications

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“…The implication is that small businesses that have higher inventory turnover tend to have better performance than those with lower inventory turnover. This result meets our a priori expectation and is consistent with findings of [22,23]. However, this finding does not conform to Sitienei and Memba, [24].…”

Section: Inventory Turnover and Profitabilitysupporting

confidence: 88%

Inventory Management and SMEs Profitability. A Study of Furniture Manufacturing, Wholesale and Eatery Industry in Delta State, Nigeria

Otuya¹,

Joseph²

2017

JFA

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Inventory constitutes bulk of current assets small and medium scale enterprises (SMEs) such as bakeries, fast food/eateries, chain stores and furniture making firms. SMEs need to understand the true costs associated with inventory management and poor inventory productivity so as to be able to review the benefits of alternative approaches. The objective of the study was to examine the effect of inventory management on profitability of SMEs in Nigeria. The study used a descriptive research design. The population consists of all SMEs operating in Delta State. The study used stratified random sampling. 10 SMEs were randomly selected from each stratum making a total of 30 firms for the study. Data for the study were obtained through the administration of a self-designed questionnaire to managers or accountants of the sampled firms. The questionnaire was structured to elicit information about the trading and financial activities for the last two accounting years. A multiple regression analysis was conducted to test the model established for the study. Findings of the study reveal that inventory turnover has a significant positive relationship with financial performance of SMEs. The study also reveals that there is a negative relationship between inventory conversion period and profitability; and no significant positive relationship between inventory leanness and profitability. The study concludes that inventory management has a great role to play in corporate financial performance of firms hence firms' inventory systems must maintain an appropriate inventory levels to enhance profitability and reduce the inventory costs associated with holding excessive stock in the warehouses. In line with the findings of the study, it is recommended that firms should embrace modern production technology that will enhance faster production to shorten inventory conversion period which will in turn improve inventory turnover and profitability.

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Section: Inventory Turnover and Profitabilitysupporting

confidence: 88%

Inventory Management and SMEs Profitability. A Study of Furniture Manufacturing, Wholesale and Eatery Industry in Delta State, Nigeria

Otuya¹,

Joseph²

2017

JFA

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“…The importance of managing inventories cannot be underestimated, especially for merchandizing and manufacturing firms, since it is the most difficult asset they must manage (Kolias et al, 2011), and has a significant influence on supply chain and firm performance (Jeremy F. Shapiro & Wagner, 2009). Due to its influence as driver of performance, different initiatives have been taken by firms to improve its efficiency and effectiveness (Eroglu & Hofer, 2011a), which include implementing initiatives on supply chain collaboration such as quick response and vendor-managed inventory (Waller et al, 1999), adopting just-in-time inventory management practice (Schwarz & Weng, 2000), employing postponement approaches (Garcia- Dastugue & Lambert, 2007), and applying supply chain software (Blankley et al, 2008).…”

Section: Introductionmentioning

confidence: 99%

“…In addition, as inventory management encompasses financing, purchasing and selling policies, their implementation involves contradictory functional objectives (Kolias et al, 2011). An instance is where the effort of the financial manager to minimize the level of inventory contradicts the effort of the marketing manager to minimize the possibility of inventory shortage.…”

Section: Introductionmentioning

confidence: 99%

“…This means that the issue of inventory management lies on optimizing between understocking and overstocking cost. Inventory shortage indicates unfavorable demand and reduction in sales, while excessive inventories could result in cost of spoilage, breakage, obsolescence and deterioration, items storage, taxes and insurance, as well as the opportunity cost of investing in alternative capital (Kolias et al, 2011).…”

Section: Introductionmentioning

confidence: 99%

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Inventory management, cost of capital and firm performance: evidence from manufacturing firms in Jordan

Alrjoub

Ahmad

2017

Investment Management and Financial Innovations

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Several studies have examined the relationship between inventory management and firm performance. However, most of these studies ignore the impact of inventory types on the relationship. Moreover, the relationship is influenced by some factors such as cost of capital which has not been considered. This study examines the moderating effect of cost of capital on the relationship between inventory types and firm performance. The data of 48 firms for the period 2010-2016 which formed 279 firm-year observations were used in this study. With the use of Pearson correlation and panel Generalized Method of Moments (GMM) estimation, the findings show that inventory management with consideration of its types influence firm performance in the long term. In addition, it is also found that cost of capital moderates the relationship between inventory management and firm performance. However, the interaction between cost of capital and inventory types has different implications. It is suggested that firms should consider cost of capital when making decision on inventory types and align their inventory control to fit in to the changes in their business environment.

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“…Next, Koumanakos (2008) indicated that the higher the level of inventory, the lower its rate of returns. Likewise, Kolias et al (2011) found that inventory turnover ratio was negatively correlated with gross margin.…”

mentioning

confidence: 95%

The mediating effect of knowledge of inventory management in the relationship between inventory management practices and performance: The case of micro retailing enterprises

Ahmad¹,

Zabri²

2018

JBRMR

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An empirical analysis of inventory turnover behaviour in Greek retail sector: 2000–2005

Cited by 61 publications

References 45 publications

Inventory Management and SMEs Profitability. A Study of Furniture Manufacturing, Wholesale and Eatery Industry in Delta State, Nigeria

Inventory Management and SMEs Profitability. A Study of Furniture Manufacturing, Wholesale and Eatery Industry in Delta State, Nigeria

Inventory management, cost of capital and firm performance: evidence from manufacturing firms in Jordan

The mediating effect of knowledge of inventory management in the relationship between inventory management practices and performance: The case of micro retailing enterprises

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