Decision-Making Techniques for Supply Chain Management: An Empirical Analysis of Just-In-Time Inventory System

Olota, O. Omotayo, Oladip G. Taiwo, and Balogun, E. Oluwadamilare

Decision-Making Techniques for Supply Chain Management: An Empirical Analysis of Just-In-Time Inventory System

Olota, O. Omotayo, Oladip G. Taiwo, and Balogun, E. Oluwadamilare

Volume 6 Issue 4 | Dec 2023

DOI: 10.31841/KJEMS.2023.150

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Abstract

Many organizations face a severe problem in developing decision-making frameworks for complicated supply chain management (SCM), which has driven them to keep improving supply chain models. This study examines Just-in-time (JIT) factors and its effect on SCM in the Nigerian manufacturing sector, with a specific focus on Olam PLC in Ilorin, which was used because it is the only international agricultural manufacturing firm that competes for supplies in the region. The survey research design was used to gather data through a questionnaire from 265 members of Olam employees selected randomly, of which 253 were valid. The data was analyzed, and hypotheses were tested through PL-SEM at a significance threshold of 0.05 using SmartPLS3. Results demonstrated that JIT has a standardized beta value and the P value of 0.981 and 0.000 on SCM, and its r2 indicated 96% on SCM, indicating that JIT has a significant effect on SCM. In conclusion, therefore, effective integration of JIT inventory management in business processes enhances continuous improvement and enhanced supply chain management.
Keywords: Just-In-Time, Supply Chain Management, Cost reduction, lead-time reduction, quick response.