An Evaluation of Just-in-Time Inventory Management in Nigerian Manufacturing Companies: A Study of Nestlé Nigeria Plc
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Background of the Study
Just-in-Time (JIT) inventory management has transformed manufacturing operations by minimizing inventory holding costs and enhancing production efficiency. At Nestlé Nigeria Plc, the adoption of JIT practices ensures the timely delivery of raw materials and the efficient production of high-quality goods. JIT’s core philosophy of reducing waste and optimizing resource use aligns with the company’s sustainability goals and operational strategies (Ibrahim & Hassan, 2023).
While JIT offers numerous benefits, its implementation in the Nigerian manufacturing sector is fraught with challenges, including unreliable supply chains, infrastructural deficiencies, and fluctuating demand patterns. These factors can disrupt JIT operations, leading to production delays and increased costs (Olawale et al., 2024).
This study evaluates the application of JIT inventory management at Nestlé Nigeria Plc, highlighting its effectiveness, challenges, and contributions to operational success.
Statement of the Problem
The manufacturing sector in Nigeria faces significant challenges, including high production costs, erratic supply chains, and limited infrastructure. For Nestlé Nigeria Plc, the effective implementation of JIT inventory management is hindered by these factors, potentially undermining its ability to achieve operational efficiency (Okafor et al., 2025).
Despite its advantages, JIT’s reliance on timely supplier deliveries and accurate demand forecasts makes it vulnerable to disruptions, highlighting the need for a comprehensive evaluation of its effectiveness in the Nigerian context.
Objectives of the Study
- To evaluate the effectiveness of JIT inventory management at Nestlé Nigeria Plc.
- To identify the challenges associated with implementing JIT practices in the Nigerian manufacturing sector.
- To assess the impact of JIT on operational efficiency and cost reduction.
Research Questions
- How effective is JIT inventory management at Nestlé Nigeria Plc?
- What challenges affect the implementation of JIT practices in Nigerian manufacturing?
- What is the impact of JIT on operational efficiency and cost reduction?
Research Hypotheses
- JIT inventory management significantly improves operational efficiency at Nestlé Nigeria Plc.
- Challenges in implementing JIT practices limit their effectiveness in Nigerian manufacturing.
- JIT contributes to significant cost reduction in manufacturing operations.
Scope and Limitations of the Study
The study examines the JIT practices of Nestlé Nigeria Plc, focusing on their impact on operational efficiency and cost reduction. Limitations include potential access restrictions to company data and variability in JIT effectiveness across different manufacturing firms.
Definitions of Terms
- Just-in-Time (JIT): An inventory management system that aligns raw material orders with production schedules to reduce holding costs.
- Operational Efficiency: The optimal use of resources to achieve desired outputs.
- Cost Reduction: Strategies aimed at minimizing expenses without compromising quality or productivity.
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