Abstract:
Procurement procedure and Inventory management practices are very essentialconcept
in making all the judgments and employment incontrolling the inventory in small and
medium size enterprises such as activities to be carried out, guidelines of inventory
management, and procedures in handling the inventory in line with procurement
procedure in order to ensure adequate quantity of each item is kept in the warehouse
at all times. This study has been conducted to find out the relationship and impact
of procurement procedure on inventory management practices in small and medium
sized enterprises in Anuradhapura district. The study selected 100 SMEs based
on the stratified sampling method and used self – administered questionnairesto
collect the data on the variables concerned with the study. And also Inventory
Planning, Funding and documentation were used as control variable. The data
were analyzed and hypotheses were tested through descriptive statistics, correlation
analysis and regression analysis. Finding revealed that, there is a significant impact
of procurement procedure on Inventory Management Practices under the both
bivariate and multivariate analysis and also Funding and Documentation have
significant impact except Inventory Planning on Inventory Management Practices
under the multivariate Analysis. The findingsof the study hold practical implication
for Policy Makers, Manager and investors and store keeper.
