NWEKE Miracle Homasom
Department of Marketing, Faculty of Administration and Management,
Rivers State University Nkpolu-Oroworukwo, Port Harcourt
ADIELE Kenneth Chima
Department of Marketing, Faculty of Administration and Management,
Rivers State University Nkpolu-Oroworukwo, Port Harcourt
OGAN Henrietta Ingo
Department of Marketing, Faculty of Administration and Management,
Rivers State University Nkpolu-Oroworukwo, Port Harcourt
Abstract
This study examined the relationship between Just-in-Time (JIT) inventory strategy and operational efficiency of downstream oil and gas companies in Rivers State, focusing on how JIT inventory strategy relates to delivery speed, cost reduction and resource utilization. Founded on economic order quantity model, the study adopted correlational research design with a cross-sectional approach. The population of the study comprised thirty (30) registered downstream oil and gas companies in Rivers State. Because the population was relatively small, all the companies were included in the study. Data were obtained from 128 key management staff involved in inventory and operational activities, particularly logistics managers, warehouse supervisors, procurement officers, supply chain analysts, and operations managers. The research instrument was structured on a five-point Likert scale. Three hypotheses were tested using Pearson Product Moment Correlation. All analyses were conducted using the Statistical Package for the Social Sciences (SPSS) version 25. Results of the analyses revealed that JIT inventory strategy relates positively to delivery speed, cost reduction and resource utilization of downstream oil and gas companies in Rivers State. Based on these findings, we concluded that, there is a positive and significant relationship between JIT inventory strategy and operational efficiency of downstream oil and gas companies in Rivers State; and recommend that downstream oil and gas firms should implement JIT systems to minimize inventory holding costs and reduce waste.
Keywords: Just-in-Time inventory strategy, operational efficiency, delivery speed, cost reduction and resource utilization.