Impact of Inventory Management Practices on Organizational Performance: A Case Study on Vishal Mega Mart

Abstract

Inventory management is one of the most important operational functions in the retail industry because it directly affects product availability, customer satisfaction, profitability, and organizational performance. Effective inventory management enables organizations to maintain optimum stock levels, reduce inventory-related costs, and improve operational efficiency. The present study examines the impact of inventory management practices on organizational performance in Vishal Mega Mart. A descriptive research design was adopted, and primary data were collected from 200 employees through a structured questionnaire using convenience sampling. Secondary data were collected from books, journals, company reports, and websites. The collected data were analysed using percentage analysis, correlation analysis, and regression analysis. The findings revealed that inventory management practices such as inventory control, stock monitoring, demand forecasting, inventory audits, inventory turnover management, and technology adoption positively influence organizational performance. Correlation analysis showed a moderate positive relationship between inventory management practices and organizational performance (r = 0.489). Regression analysis indicated that inventory management practices significantly affect organizational performance (R² = 0.239, p < 0.001). The study concludes that effective inventory management contributes significantly to operational efficiency, customer satisfaction, and organizational success.