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Effect of Inventory Management Practices on Supply Chain Performance
Open AccessJournal Type: Research ArticleSubject: Business StudiesSubject Field: Operations Management and Information SystemsVolume:197, Issue: 1, May, 2026Publish Date: 16 May 2026

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Pages: 107-126

Abstract

Improving supply chain performance largely depends on effective inventory management, particularly in manufacturing organizations where efficiency, cost control, and responsiveness are critical for competitiveness. Although previous studies have examined inventory management practices, many focused on individual practices and adopted industry-wide perspectives, resulting in limited firm-level evidence on their combined effect on supply chain performance. The aim of this study was to determine the effect of Strategic Supplier Partnerships, Economic Order Quantity (EOQ), Just-In-Time (JIT) practices, and Material Resource Planning (MRP) on supply chain performance, grounded on supply chain and resource-based theoretical perspectives. The study adopted a quantitative research approach using a descriptive-correlational and causal research design. Data were collected through a structured, self-administered survey questionnaire administered to employees of food manufacturing firms in Cabuyao City, Laguna who were directly involved in inventory planning, inventory replenishment, supplier coordination, or inventory-related system use. A five-point Likert scale was used, and data were analyzed using descriptive statistics and multiple regression analysis to determine the effect of inventory management practices on supply chain performance. The findings indicated that inventory management practices had a significant influence on supply chain performance, particularly in improving operational efficiency, cost control, and delivery reliability. The study contributed to existing literature by providing context-specific empirical evidence on the combined effect of inventory management practices in supporting managerial decision-making in food manufacturing organizations.

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