Consignment Inventory System and Obsolescence Management in the Drilling Fluid Firms in Nigeria
Abstract
This study investigated the consignment inventory system and obsolescence management in the drilling fluid firms in Nigeria. The study adopted cross sectional design and ex-post facto design. A total population of 9432 and sample size of 384 was determined using Taro Yamane Formula at 0.05 level of significance using purposive and proportionate stratified random sampling technique. The 384 copies of questionnaire were administered, only 317 was deem fit after processing, retriever, coding and cleansing. The Split Half method was employed to determine the reliability of the instrument with Spearman Prophesy approach. Four research questions and four hypotheses were raised which was tested with Pearson Product Moment Correlationand Partial Correlation because of the bivariateand multivariate functionrespectively via SPSS 25 version. From the findings, consignment inventory system positively correlates with the obsolescence management. Hence, it was revealed that the alternate hypotheses were accepted. In conclusion, the explanatory variable has positive significant influence response variable. From the findings, maximum stock level, re-order stock level and minimum stock level expresses strong correlates on reactive and proactive obsolescence management in the short term and long term. It could be recommended that re-order level should only be implemented and demonstrated by the top management of the drilling fluid companies because of its complexity towards balancing the ordering cost and holding cost.
Keywords
Consignment Inventory Systemmaximum inventory levelre-order inventory
levelminimum inventory levelproactive obsolescence managementreactive obsolescence
management
References
Afolabi, O. J., Morakinyo, K. O., &Olumide, O.(2017). Evaluation of the role of inventory management sin logistics chain of an organisation.LOGI – Scientific Journal on Transport and Logistics, 8(2),1-11. DOI:10.1515/logi-2017-0011 Ahunanya, V, Ovharhe, O. H., Emenike, C. G., & Otto, G. (2022a). Consignment inventory system and entrepreneurial success among micro warehousing firms. International Journal of Social Science & Management Research. 8(5), 18- 28.DOI:10.56201/ijssmr.v8.no5.2022.pg18.28 Akinsanya, O., & Akinsanya, D. (2019). Design and implementation of a computerized stock management system.(A case study of Mide supermarket).Mide Digital Publishers Alexandre, D., & Jean-Marie, P.(2021). Inventory management in supply chains.Journal of Physics Conference Series, 69(1), 67-72. DOI:10.1007/978-1-84996-017-5 Alina, S., Michael, F., & Alexander, K. (2017).Do entrepreneurs really earn less?Springer Small Business Economics, 49(2), 251-272 Anderson, B.(2012). Building cars in Australia: Morris, Austin, BMC and Leyland 1950- 1976. Sydney: Halstead Press. Azeddine, Z., & Mohammed, E.l. (2017). Inventory management of supply chain with robust control theory: literature review. International Journal of Logistics Systems and Management, 27(4), 45-64 Bertha, M. S., Ferry, J.,&Himadhani., M. (2020). Analysis of the uncertainty sources and SMEs’ survival.Policy for Innovative, Interventions and Entrepreneurship Journal, 1(1), 1-27. https://doi.org/10.1080/08276331.2020.1764737 Chibuike, C. U., &Ovharhe, O. H. (2022). Emergence of risk culture and lean culture in Nigeria during pandemic and crisis era: Using confirmatory analysis. International Journal of Multidisciplinary Research and Growth Evaluation, 3(1), 263-271. DOI: https://doi.org/10.54660/anfo.2021.3.1.14 Chibuike, C. U., Ovharhe, O. H., &Abada, A. M. (2022). Synchronization of lean accounting alert and entrepreneurial sustainability among micro firms in Nigeria during pandemic and catastrophe: Using confirmatory factor analysis. The International Journal of Business & Management,10(1), 1- 13. https://doi.org/10.54660/anfo.2021.2.6.15 Evans, D. (2020).Coronavirus shows that supply chains are outdated and unfit for modern manufacturing. Forbes. Retrieved May 21, 2020. Hayes, R. (2020). Loss prevention: Senior management views on current trends and issues. Security Journal, 16(2), 45-62. DOI:10.1057/palgrave.sj.8340129 Inegbedion, E. H., Sunday C., &Eze, S.C. (2019).Inventory management and organisational efficiency: stock market efficiency using different estimation techniques. Journal of System Spectrum Research, 5(3), 756-763. DOI: 10.32861/jssr.53.756.763 Krolicki, N. C., &Noel, R. (May 21, 2020).Just-in-time' economy out of time as pandemic exposes fatal flaws. www.abc.net.au. May 1, 2020. Retrieved May 21, 2020. Meyer, L., &Pretorius, L. (2017).A management approach to component obsolescence in the military electronic support environment. University of Pretoria. DOI:10.7166/14-2- 271 Mohammed, H. D. (2018). The effect of information technology on inventory management for the manufacturing companies in Mogadishu. European Journal of Logistics, Purchasing and Supply Chain Management, 6(3), 20- Retrieved from https://www. eajournals.org/journals/european-journal-of-logistics-purchasing-and-supply-chain management-ejlpscm/vol-6-issue-3-june-2018/the-effect-of-information-technology- oninventorymanagement-for-the-manufacturing-companies-in-mogadishu/ Muhayimana, V. (2015). Inventory management techniques and its contribution on better management of manufacturing Companies in Rwanda Case Study: Sulfa Rwanda Ltd. European Journal of Academic Essays, 2(6), 49-58 Muscatello, J. R. (2018). Enterprise resource planning (ERP) iimplementations: Theory and practice. International Journal of Enterprise Information Systems, 4(1), 63-83. Ovharhe, O. H. (2022a). Sustainable development goals: Multicollinearity between therapeutic entrepreneurship and rehabilitation therapy among African nations. International Journal of Small Business and Entrepreneurship Research, 10(3),1-59. Ovharhe, O. H. (2022b). Sustainable Development Goals: Therapeutic Entrepreneurship and Entrepreneurship Injelititis among West Africa Countries. World Journal of Entrepreneurial Development Studies (WJEDS), 7(1), 87-113. DOI: 10.56201/wjeds. Ovharhe, O. H., Ahunanya, V., Woko, E. B. (2022). Consignment inventory system and entrepreneurial survival in Lagos State. International Journal of Social Science & Management Research.8(5),29-42. DOI: 10.56201/ijssmr.v8.no5.2022.pg29.42 Ovharhe, O. H., & Igbokwe, E. L. (2021). Analytical intervention of remote working correlates on risk culture and entrepreneurial adaptability in South-South Geopolitical Zone, Nigeria: Covid-19 Perspective. Journal of Education and Practice, IISTE, 12(3), 34-44,DOI: 10.7176/JEP/12-34-05 Ovharhe, O. H., & Okolo, B. S. (2022). Sustainable development goals: Lean entrepreneurship and Green entrepreneurship. International Journal of Research and Scientific Innovation ISSN: 2321-2705 Ovharhe, O. H., Okolo, B. S., Woko, E. B., & Igbokwe, L. (2022). Light entrepreneurship and customer funded business model. International Journal of Social Science & Management Research. 8(5), 87-106. DOI: 10.56201/ijssmr.v8.no5.2022.pg87.106 Ovharhe, O. H., Woko, E. B., & Ezeocha, V. U. (2021). Remote Working: Entrepreneurial risk and entrepreneurial survival in the micro firms in Niger-Delta, Nigeria (COVID19 Pandemic Prospects). International Journal of Small Business and Entrepreneurship Research, 9(4), 11-28. Available at SSRN: https://ssrn.com/abstract=3983482 Ovharhe, O. H., Woko, E. B., & Ogolo, T. M. (2021).Competitive risk strategy and entrepreneurial satisfaction among fast moving consuming goods in Nigeria during covid-19 pandemic using confirmatory factor analysis.International Journal of Multidisciplinary Research and Growth Evaluation, 2(6), 267- 272.https://doi.org/10.54660/anfo.2021.3.1.14 Pretorius, L., & Pretorius, J. C. (2020).A management approach to component obsolescence in the military electronic support environment.SDLC, 2(2), 45-64.DOI:10.7166/14-2- 271 Priniotakis, G., &Argyropoulos, P. (2018).Inventory management concepts and techniques.IOP Conference Series Materials Science and Engineering, 459(1), 012- 060. DOI:10.1088/1757-899X/459/1/012060 Robert, P. G., Chao, M., Shanshan, Q., & Tae, J (2017).Entrepreneurial spawning and knowledge-based perspective: a meta-analysis. Springer Small Business Economics, 49(2),355-378 Roger, R.,Steven, K., & Matthew, M. (2016). Peace through entrepreneurship: Investing in a startup culture for security and development”. Springer Small Business Economics, 49(3), 717-720 Romero, F.J., Rajkumar R., & Kelly, S. (2012). Obsolescence risk assessment process best practice. Journal of Physics Conference Series, 34(1), 43-52. DOI:10.1088/1742- 6596/364/1/012095 Sarojit, K. B., &Chitra, K. (2017). Analysis of different inventory control techniques: A Case Study in a Retail Shop. Jessore University of Science and Technology Sayg?n, N. (2020). An obsolescence management framework for a defenceindustry. Journal of Physics Conference Series, 71(3), 85-91 Shahzad, N., Syed, M. M., Faraz, A., & Moin, A. (2020).Inventory management through lean logistics and warehousing techniques.International Journal of Management Sciences and Business Research, 5(10), 159-167
More Articles from INTERNATIONAL JOURNAL OF SOCIAL SCIENCES AND MANAGEMENT RESEARCH
Building National Analytics Capacity: Advances and Future Pathways
Author: Uchechi Mary-Linda Unamma, Ifeanyichukwu Jeffrey Okwesa, Uzoamaka Iwuanyanwu
Root-Cause and Thematic Analysis for Major Incident Management: A Review
Author: Ifeanyichukwu Jeffrey Okwesa, Uchechi Mary-Linda Unamma, Uzoamaka Iwuanyanwu
Data-Quality and Single-Source-Of-Truth Frameworks for Inter- Agency Reporting: A Review
Author: Uchechi Mary-Linda Unamma, Ifeanyichukwu Jeffrey Okwesa, Uzoamaka Iwuanyanwu
Human-In-The-Loop Decision Systems: Advances and Future Directions
Author: Funmilayo Ashore-Onisemo, Uchechi Mary-Linda Unamma, Ifeanyichukwu Jeffrey, Okwesa,
Roles of Oil Subsidy Removal on Transportation Cost and Water Factory in Cross River South, Nigeria
Author: Onwuzurike Peter Tobechi, Owoh Akwa Owoh, Unoh Grace Inyang, Umaru Musa