Abstract
The impact of facility location and inventory control on manufacturing firm productivity has become a major topic. The location of a production facility and inventory control are essential variables in defining efficiency and effectiveness, and thereby increasing the productivity of a company. Manufacturing companies' survival is dependent on their ability to maintain continuous output, and excellent inventory control is required to ensure an efficient production process. A manufacturing company's facility location can be a viable advantage if it is carefully chosen in a way that enhances effectiveness and efficiency. Higher productivity depends on the location of the factory, such that the material can be easily and swiftly transferred to the factory production line.
The focus of this research was to explore how facility location and inventory control affect steel manufacturers' productivity in Johannesburg. To answer the research question, the study used an exploratory research question.
Primary sources were used during survey on this research to acquire primary data for the study, whilst secondary data sources were used to gather information during literature review for this study. Five steel manufacturers were included in the study, all of them are members of the South African Iron and Steel Institute (SAISI), which represents medium and large businesses in East, South, and Central Johannesburg. The probability sampling method was utilised to pick 140 respondents, with each steel company receiving 28 responses. IBM SPSS version 27 was used to do the data analysis.
The study discovered a link between facility location, inventory control, and productivity. The correlation coefficient was significant in demonstrating that inventory control and facility location have an impact on productivity, indicating that all three variables are linked. Overall, the study found that inventory control and facility location have an impact on firm's productivity.
Keywords: Efficiency, facility location, inventory control, productivity, steel manufacturers, Johannesburg