Impact of Integrated Inventory Management Strategies on the Effectiveness of Business Performance

SCOPE OF THE STUDY:

The scope of study is divided into two different aspects, firstly the geographical scope and second is the conceptual scope. The geographical scope of the study confines to the Inventory Management mechanisms in Hyderabad business environment and conceptually it confines to the Integrated Inventory Management and their impact on Vendor satisfaction.  Geographical scope further confines to Pharmaceutical Companies in Hyderabad.

OBJECTIVES   OF THE STUDY:

The main research objectives are defined as under:

  • To understand the impact of Integrated Inventory Management strategies on the effectiveness of Business performance with special reference to Pharmaceutical Companies
  • To assess the impact of Integrated Inventory Management on the satisfaction levels of Vendors of Engineering items in   Pharmaceutical Companies
  • To explore the concepts and practices associated to Inventory Management at Pharmaceutical Companies.
  • To understand the relevance of theoretical aspects to practical implementation in improvising the productivity in an organization with regard to Inventory Management.

HYPOTHESES:

Hypothesis 1:

Null Hypothesis H0: inventory Management has a direct implication to business organizations in enhancing their operational efficiency

Alternative Hypothesis H1: inventory Management has no implication to business organizations in enhancing their operational efficiency

Here, null hypothesis is accepted.

All the variables show a significance association with overall satisfaction with Inventory management strategy and its impact on Business performance. Hence we can conclude that there is a direct implication of inventory Management on the business organization in enhancing its operational efficiency. 

Research Question

On the basis of the research objectives developed above, the main research question of this research study is developed. The research question is drafted as to what extent the Integrated Inventory Management has been supportive to enhance the operational efficiency of business organisation. The research study also seeks to provide answers to the following sub-research questions:

This research question is well defined and useful to provide a clear, direct path to the research work in order to achieve its aim and objectives in the most successful way.

Research Hypothesis

In this context, the main hypothesis for the following research study is defined and developed as under:

Null Hypothesis H0:  Integrated Inventory Management has a direct implication to business organizations in enhancing their operational efficiency

Alternative Hypothesis H1: Integrated Inventory Management has no implication to business organizations in enhancing their operational efficiency 

DATA COLLECTION

Primary Data: The primary data is collected from among the staff working in Inventory Management divisions at Pharmaceutical Companies Hyderabad with the help of questionnaire using 5 point Likert scale.

Secondary Data: The secondary data is collected from selected texts and Journals.

RESEARCH DESIGN:

 The Research design used for this study is partly descriptive in nature using secondary data and partly Exploratory in the form of primary data.

SAMPLE DESIGN:

a) Sampling Technique

Random Sampling technique and Area sampling was used for collecting data related to Integrated Inventory Management from   among the staff working in logistics and procurement division of engineering instruments in Pharmaceutical Companies.

b) Sample Size: Sample size is limited to 100 from among the employees working in Pharmaceutical Companies

c) Sample units: The staff involved in Inventory Management activities of Pharmaceutical Companies form part of the sample units.

 The staff working in Procurement department of five selected Pharmaceutical Companies such as Dr Reddy’s Lab, Mylan Pharma,Hetero Drugs, Aurbindo Pharma & MNS Laboratories Pvt Ltd  formed part of the Sampling units.

d) Sampling frame: The sampling frame is taken from Hyderabad based Pharmaceutical Companies Company.

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