BERNARD Peniel
Department of Marketing, Faculty of Administration and Management,
Rivers State University Port Harcourt
peniel.bernard@ust.edu.ng
AKEKUE-ALEX Nennaaton
Department of Marketing, Faculty of Administration and Management,
Rivers State University Port Harcourt
peniel.bernard@ust.edu.ng
GLADSON-NWOKAH Juliet Ijeoma
Department of Marketing, Faculty of Administration and Management,
Rivers State University Port Harcourt
peniel.bernard@ust.edu.ng
Abstract
This study investigated the relationship between economic order quantity (EOQ) and logistics performance of quoted oil and gas companies in Nigeria. The oil and gas industry faces significant logistical challenges, including high transportation costs, overstocking, and stock-outs, which adversely affect operational efficiency. Utilizing a cross-sectional research design, data were collected through structured questionnaires administered to senior managers in operations, logistics, and warehousing across nine oil and gas companies. Spearman’s Rank Order Correlation was employed for data analysis, revealing strong, positive correlations between EOQ and key logistics performance indicators: on-time delivery, order Fulfilment, and transportation costs (p < .005). The findings demonstrate that implementing EOQ can significantly enhance inventory management, reduce costs, and improve logistics outcomes in the sector. The study contributes to the existing literature by highlighting the underexplored application of EOQ in Nigeria’s oil and gas industry and underscores the need for effective inventory management practices to optimize logistics performance. Recommendations are provided for industry practitioners to integrate EOQ principles into their inventory management strategies to achieve operational excellence.
Keywords: Economic order quantity, on-time delivery, order fulfilment, logistics performance transportation costs.