Relationship between Inventory Management and Uncertain Demand for Fast Moving Consumer Goods Organisations

Ndivhuwo Nemtajela, Charles Mbohwa

Research output: Contribution to journalArticlepeer-review

32 Citations (Scopus)

Abstract

This paper addresses relationship between inventory management and uncertain demand. It also assesses the effects of uncertain demand on inventory management in the fast moving consumer goods (FMCG). Inventory management should be given attention it deserves in order for the business to stay competitive, flexible for the demand and at low cost. Inventories are difficult to manage and control, and inventory managers find it challenging to know when to order and how much to order. The research was descriptive in nature and was conducted through the use of quantitative research methods. A survey questionnaire was used to collect primary data from five FMCG organisations in the manufacturing industry around Johannesburg. A sample of 255 respondents was involved in this study. According to the findings, significant relationship between inventory management and uncertain demand exists. The findings imply that poor inventory management will result in demands not being satisfied, organisations will either have too much or too little on hand, and this will result to the organisations’ failure.

Original languageEnglish
Pages (from-to)699-706
Number of pages8
JournalProcedia Manufacturing
Volume8
DOIs
Publication statusPublished - 2017

Keywords

  • Activity Based Cost analysis (ABC)
  • Economic Order Quantity (EOQ)
  • Fast moving consumer goods (FMCG)
  • inventory management
  • uncertain demand

ASJC Scopus subject areas

  • Artificial Intelligence
  • Industrial and Manufacturing Engineering

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