Abstract:
This study examined the effect of inventory management practices on
the performance of small and medium-scale enterprises in the Cape Coast
Metropolis. The study adopted the descriptive and correlational study designs
and used the proportional stratified sampling technique to select 341 small and
medium enterprises in the Cape Coast Metropolis, who served as sample size
for the study. Respondents constituted owners/managers of SMEs.
Questionnaires were designed based on past empirical studies and data
collection was aided by enumerator. The data collected were analysed using
descriptive statistical tools (frequencies, percentages, mean scores) as well as
inferential statistics (Pearson’s correlation coefficient, regression
analysis)using SPSS for windows, version 21.The findings revealed that SMEs
in the Cape Coast Metropolis apply information technology, lean inventory
systems and strategic suppler partnership in their firms. Also, inventory
management practices had a positive and significant relationship with the
performance of SMEs in the Cape Coast Metropolis. Finally, there was
positive effect of inventory management practices (information technology,
lean inventory system, strategic supplier partnership) on the performance of
SMEs in the Cape Coast Metropolis. The study recommended that the state
agencies that seek the welfare of SMEs, for instance, NBSSI and Ghana
Chamber of Commerce should encourage owner/managers of small and
medium sized enterprises to embrace inventory innovations in order to
generate long term stability and for the firm to have competences.
