Testing the Just-In-Time Inventory Model Effect on Organizational Effectiveness for Egyptian Manufacturing Industries

Abstract

Inventories are playing vital role in every business, so organization needs to have proper control and management of inventories as it may lead to increase in manufacturing cost. A correctly managed inventory can significantly affect organizational effectiveness. Just in Time (JIT) has been treated as one of the best manufacturing methods to address issues related to all types of inventories and wastes. Thus, this research broadens the geographical range by measuring the relationship between inventory level and organizational effectiveness through JIT in the Egyptian context, using questionnaires with a final sample 517 respondents, at Egyptian industrially certified ISO standard businesses operating in a variety of areas for measuring inventory levels. The findings demonstrated that inventory level significantly affects organisational effectiveness via the mediating function of JIT inventory. This research recommended to decision makers to manage and reduce their inventory level as it is proved that inventories represent a poor method for managing an organization because it increases the cost of manufacturing. Also, to work on enhancing the organizational effectiveness (Aligning, Exploiting, and Mobilizing) by always working on solving any problem that could face the organization as well as developing the whole operation and make it more advanced. As well, apply the most advanced technologies and machines that support the process of JIT.