Authors: Rinki Kumara, Dr Navneet Seth
Abstract: Purpose: In the competitive landscape of the Indian manufacturing sector, procurement efficiency is vital for meeting client demands. However, recent data indicates a concerning 23% increase in procurement performance gaps, leading to widespread stakeholder dissatisfaction. This study investigates the impact of inventory management strategies specifically Economic Order Quantity (EOQ) and Activity-Based Costing (ABC) on the procurement performance of major manufacturing firms in India. Methodology: The research utilized a descriptive research design targeting procurement authorities within large-scale manufacturing enterprises. Applying the Cooper and Schindler formula, a sample of 187 procurement officers was selected through simple random sampling to ensure unbiased population representation. Data was collected via structured questionnaires and analyzed using descriptive statistics, including frequencies, mean, and standard deviation. Findings & Recommendations: The study underscores a significant correlation between strategic inventory modeling and operational success. The findings suggest that integrating EOQ calculations and ABC frameworks into standard procurement procedures is essential for optimizing costs and performance. It is recommended that major industrial corporations formally embed these strategies into their procurement workflows to mitigate performance deficits.
