Abstract
Inventory is handled in different places, in the households, warehouses, stores, factories and service areas like banks and it is also controlled differently. However, across these diversity storages, there is the mutual problem of shrinkage. This research examine the impact of inventory loss in service operation management at Spar North Rand distribution. Experience has shown that even though inventory loss can be recognised to a few sources, such as, shoplifting, employee crime, seller fraud, administrative mistakes, there are still other unclear reasons. This study examined the impact of inventory loss in service operations management of warehouses with a view to preventing inventory loss for better productivity. In this study, the impact of inventory loss was measured using operational performance, drivers to effective inventory, inventory procedure and barriers to effective inventory. This paper adopted a quantitative research strategy. Using the five-point Likert scale, one hundred and fifty (150) Questionnaires were distributed to the employees at Spar North Rand distribution. 80.67 % questionnaires were completed, 5.3% was not returned, 4.67% where unusable, and 9.3% where returned uncompleted due to employees refusing to partake. Only 121 questionnaires were useable. The data were analysed using SPSS vision 24 to present and test the network of correlations between the variables. The results showed that there was a positive relationship (r = 0.510; p < 0.01) between operational performance and the drivers to effective inventory. From this research, it become evident that lack of training and lack of motivation such as recognition and incentives for staff acts as a huge negative impacts in service operations management. Insufficient training was identified as the main barrier, whereas lack of motivation was identified as the main driver to effective inventory management. Implementation of performance checklist was found to have the greatest impact to operational performance.
M.Tech. (Operations Management)