Global Journal of Management and Business Research, C: Finance, Volume 22 Issue 5

performance and effectiveness of retail stores as 90% of the statements measuring performance proved consistent and statistically significant. Hence, the null hypothesis was rejected. The alternative hypothesis which states that the adopted inventory management practice influences the effectiveness of retail stores is therefore accepted. This finding is similar to the findings of Munyao et al (2015) in their study of the roles of inventory management practices on the performance of the production department. V. C onclusions and R ecommendations The major focus and objectives of this study were to examine the impact of inventory management practice and its effectiveness on retail stores in Vhembe District Municipality in Limpopo Province of South Africa. From the study, the following key findings emerged: Firstly, there is a consensus among the respondents’ perception about the effectiveness of the adopted inventory management practice, which in turn contributes to their performance. Also, findings from the study indicate that all of the stores adopted inventory management techniques and tools such as EOQ, JIT, barcoding and inventory management software for their operations. Thirdly, the findings further indicate that all of the stores that adopted these inventory management tools and techniques are large and medium-scale businesses that have branches either locally or internationally as they are capable of investing in inventory management tools that small-scale businesses cannot. Lastly, the majority of the respondents perceived that the adopted inventory management system greatly contributed to their effectiveness by improving the quality of service delivery and high rate of customer retention, reducing operational storage, carrying and security costs, reduces under stocking and overstocking and finally increases returns on investment through increased sales and turnover. From the study’s findings and conclusions, the study recommends that retail stores should invest more in modern inventory management systems as it has a long-term beneficial effect on the effectiveness and performance of retail stores. Also, retail store owners or top management should always organise continuous on-job training for their staff or employees to keep them abreast of the availability and usage of modern inventory management tools and techniques to enhance the job skills and performance of the retail store employees. Furthermore, retail stores should maintain a good relationship with their supplier to improve the supply chain management system to enhance the smooth operation of the business and achieve a high level of profits through minimisation of stock holding costs amongst others. R eferences R éférences R eferencias 1. Amahalu, N. (2018). Inventory management and financial performance: Evidence from brewery firms listed on Nigeria stock exchange. International Journal of Research in Business, Economics and Management, 2(3). 2. Anichebe N.A., & Agu O., (2013). Effect of Inventory Management on Organisational Effectiveness. Journal of Information and Knowledge Management, Vol.3, No.8. 3. Ballou, R. H. (2000). Evaluating inventory management performance using a turnover curve. International Journal of Physical Distribution & Logistics Management, 30(1):72-85. 4. Braglia, M., Gabbrielli, R. & Zammori, F., (2013). Stock diffusion theory: a dynamic model for inventory control. International journal of production research, 51(10): 3018. 5. Dimitrios, P. (2008). The effect of inventory management on firm performance, International Journal of Productivity and Performance Management, 57 (5) 6. Dobler & Burt. (2006). Purchasing management. (6th ed.). Mcgraw hill international Edition. 7. Fullerton R.R., C.S., McWatters and Fawson C., (2003). An Examination of the Relationship between JIT and Financial Performance, Journal of Operations Management 21, 383–404. 8. Hofstee, E., (2006). Constructing a good dissertation: A practical guide to finishing a Master's, MBA or PhD on schedule. Sandton, South Africa: EPE. 9. Ile N.M., (2002), Management, A Functional Approach, Enugu: Ochumba Printing and Publishing Co. Ltd. 10. Langfield-Smith, K., Thorne, H. & Hilton, R.W. (2006). Management accounting: information for managing and creating value. 4th ed. New South Wales: McGraw-Hillllrwin. 11. Mugenda, O. M., & Mugenda, A. G. (2003). Research Methods, Quantitative and Qualitative Analysis African Center for Technology Studies. Nairobi: Applied Research and Training Services (ACTS). 12. Munyao, R.M., Omulo, V.O., Mwithiga, M.W., & Chepkulei, B. (2015). Role of inventory management practices onperformance of production department. A case of manufacturing firms. International Journal of Economics, Commerce and Management, 3(5), pp.1625-1656. 13. Mwangi, L. (2016). The effect of inventory management on firm profitability and operating cash flows of Kenya breweries limited, beer distribution firms in Nairobicounty (Doctoral dissertation). 14. Nirmala A.R, Vijila K, Gnanaraj J.P (2022) Inventory Management and control System using ABC and 6 Global Journal of Management and Business Research Volume XXII Issue V Version I Year 2022 ( ) C © 2022 Global Journals Analysis of the Impact of Inventory Management Practices on the Effectiveness of Retail Stores in South Africa