INVENTORY CONTROL AND OPERATIONAL EFFICIENCYOF HOTELS IN PORT HARCOURT METROPOLIS
Abstract
This study sought to investigate the impact of inventory control on operational efficiency of Hotels in Port Harcourt Metropolis. Specifically,it examined how inventory control could effect timely service delivery, waste reduction and cost reduction which are the identified measures of operational efficiency. Thus three specific objectives, research question and hypotheses were formulated to guide the study which was domiciled in the Port Harcourt hotel sector. The study adopted the descriptive survey design;and used the cluster sampling technique to draw a sample of three hundred and eighty-five (385) from fifty-five (55) hotels within the sector. Subsequently, seven copies of the research instrument were administered to each of the hotels purposefully; while data was gathered via the use of a five 5 point Likert-like scale questionnaire. The validity and reliability of the survey instrument was guaranteed by conducting confirmatory factor analysis which comprised the assessment of discriminant validity, convergent validity as well as composite reliability and Average Variance Extracted. The hypotheses were analysed using Partial Least Square structural equation modelling (PLX-SEM). The result showed that inventory control possesses a significant positive relationship with operational efficiency as it boasted of beta (β) values of 0.876, 0.821, 0.804 for timely service delivery, waste reduction and cost reduction respectively. Consequently, hotel managers were urged to design and implement suitable inventory control systems that would guarantee optimality in the usage and storage of inventory items since it was shown to have positive impact on operational efficiency. It was also recommended that hotel management should embrace computerized system of managing inventory while maintaining quality relationship with suppliers.
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