Abstract:
Operations strategy is the value-adding process used by the company to guarantee that
customers receive value through the conversion of resources into finished goods and services.
Operations management procedures include quality control, supply chain management,
inventory management, risk management, and information technology. The main objective of
this study was to establish the influence of inventory management strategy on the
performance of retail chains in the Nairobi Central Business District. The study was
anchored on the systems theory. The study adopted a descriptive research design and the
target population was 34 retail chains within the Nairobi CBD area. The sample population
involved 80 managers who were in charge of the retail chains in Nairobi CBD. Selfadministered
structured
questionnaires
were
used
to
collect
primary
data.
Data
was
analyzed
using
descriptive and inferential statistics. The study found that inventory management
strategy has a positive significant influence on the performance of retail chains in the Nairobi
Central Business District. This is because an increase in a unit of inventory management
strategy leads to an improvement of the performance of the retail chains. The study
recommended that retail chains should implement inventory management practices that aim
to reduce deadstock and minimize inventory holding costs. The study also recommended that
organizations should utilize inventory forecasting techniques to accurately predict demand
and adjust inventory levels accordingly. The study further recommended that retail chains
should explore vendor-managed inventory (VMI) arrangements with key suppliers to
maintain optimal stock levels. The study recommended that retail chains should regularly
assess and update inventory turnover strategies to meet customer demand effectively.
