Impact of inventory management on firm performance

The impact of inventory management on firm performance. A study of listed Manufacturing firms in Ghana, Suleman Bawa Effective inventory management is crucial to every organization as inventory constitute a substantial amount of firms assets. Its contextual impact still need much investigation because of lack of clarity and divergent findings. Using a cross sectional secondary data designed to test whether there is any relationship between inventory management and firm¿s performance of listed manufacturing firms in Ghana, measures of firm performance which were profitability and operating cash flows were examined. Regression equations stated in the form of return on assets and operating cash flow was used in analysing firm performance. No relationship was found and the study concluded that inventory management has no impact on firm performance of listed manufacturing firms in Ghana.