Impact of Inventory Management on Firm’s Efficiency – A Quantitative Research Study on Departmental Stores Operating in Karachi

This study investigated the effect of various inventory management factors on firm's efficiency. These factors included Capacity Utilization, Inventory Accuracy, Lean Inventory, and Stock Availability. Data was collected by the use of liker scale questionnaire from 250 individuals from different departmental stores in Karachi. Data was analysed using Structural Equation Modelling. The results showed Inventory Accuracy, Lean Inventory, and Stock Availability has positive and significant impact on efficiency. However, Capacity Utilization doesn't seem to affect efficiency. Hence, main indicator of inventory control comes out to be inventory accuracy which allows having an effective control of the outputs of the different goods