The Effect of Inventory Control on The Performance of Small and Medium-Sized Enterprises in Douala
DOI:
https://doi.org/10.31674/ijrtbt.2025.v09i04.003Abstract
Introduction: Ineffective inventory control can sometimes hinder the effectiveness of small and medium-sized firms (SMEs), despite their critical role in employment and economic development. This study examines the impact of three inventory-control techniques, i.e., Economic Order Quantity (EOQ), Just-in-Time (JIT), and ABC classification, on SMEs' performance in Douala, Cameroon. Methods: A cross-sectional field survey administered structured questionnaires to 120 SME managers/owners selected via purposive sampling (100% response). Data was analyzed using descriptive statistics, reliability testing (Cronbach’s α), and regression models (OLS and ordinal logit); diagnostic tests indicated no problematic multicollinearity. Results: EOQ is a strong, positive, and statistically significant predictor of reported SME performance (β = 0.718, SE = 0.117, t = 6.143, p < 0.001). JIT (β = 0.079, p = 0.478) and ABC (β = 0.028, p = 0.847) show positive but statistically insignificant effects. The regression model explains 28.5% of the variance in performance (R² = 0.285; F (3.116) = 15.44; p < 0.001). Conclusion: Findings indicate that affordable, computerized EOQ systems supported by staff training and regular stock reconciliation can yield measurable performance gains for SMEs. Effective adoption of JIT and ABC appears contingent on stronger supplier reliability, logistics, and managerial capacity. Limitations include cross-sectional design, purposive sampling, and reliance on self-reported performance; future research should use longitudinal designs, representative samples, and objective performance indicators.
Keywords:
ABC Classification, Economic Order Quantity (EOQ), Inventory Control, Just-in-Time (JIT), SME PerformanceDownloads
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