INVENTORY MANAGEMENT OPTIMIZATION AND PERFORMANCE OF MAIN POWER ELECTRICITY DISTRIBUTION COMPANY, ENUGU STATE, NIGERIA

Abstract

This study examined the effect of inventory management optimization on Main Power Electricity Distribution Company (MPEDC), a subsidiary of Enugu Electricity Distribution Company (EEDC), Enugu State. Specifically, the study investigated the relationship between inventory levels and operational efficiency of Main Power Electricity Distribution Company, and the effect of inventory management practices on customer satisfaction within the study area. The study made use of descriptive survey research design. The population of the study consisted of 210 personnel of the company, selected from the main office and the three districts/Feeder wise of the company. The major statistical tools of analysis were frequency tables, percentage as the descriptive statistics, and Pearson Correlation and multiple regression analysis as the inferential statistics. Findings from the study suggest that inventory levels have significant positive effect on operational efficiency; inventory management practices have significant positive effect on customer satisfaction. The study concludes that inventory management optimization is a critical driver of operational, financial and customer-related outcomes within the electricity distribution company in Enugu. The study recommends that Electricity Distribution Companies should maintain optimal inventory levels through real-time tracking and demand forecasting the prevent stockouts and ensure uninterrupted operational activities.