MODERATING ROLE OF TECHNOLOGY ADOPTION ON THE RELATIONSHIP BETWEEN INVENTORY PLANNING AND OPERATIONAL EFFICIENCY OF MANUFACTURING FIRMS IN NORTHEAST NIGERIA

Abstract

The inadequacy of global inventory planning practices in the manufacturing industry leads to decreased productivity, increased production costs, and the frequent appearance and disappearance of products in the market, ultimately hampering economic development. This study investigated the moderating role of technology adoption on the relationship between inventory planning and operational efficiency in the manufacturing firms of Northeast Nigeria. Inventory planning, encompassing demand forecasting and safety stock management, plays a crucial role in meeting consumer demands and averting operational disruptions.  Using a survey research design, data were collected from manufacturing firms in Northeast Nigeria. Descriptive statistics, regression analysis, and hypothesis testing were employed to analyze the data. The findings reveal a significant positive relationship between demand forecasting, safety stock inventory management, and operational efficiency. Moreover, technology adoption mediates the effects of demand forecasting and safety stock inventory on operational efficiency, amplifying their effect. The study concludes that integrating advanced technological solutions with effective inventory planning strategies can enhance operational efficiency in the manufacturing sector. The study recommends prioritizing the adoption of technology, refining demand forecasting techniques, and optimizing safety stock inventory levels.