Operational management branch has experienced continuous innovation in manufacturing process. Techniques such as lean manufacturing or in time (just in time) and Total Quality Management include these innovations. In this study we attempted to answer this question whether return on assets and return on equity is appropriate criteria for determining effect of a specific individual, such as implementation of just in time, on economic performance; and whether such alternative measure like profitability are suitable foundations or not. For this purpose, data of 112 of firms listed in Tehran Stock Exchange during period of 2009 to 2013, and a linear regression and panel data used. The results revealed that optimal management of inventory will lead to improved financial performance. Although it was expected that basic profitability management criteria, is a better measure for evaluating impact of inventory management on financial performance, but this issue not confirmed and approved by the majority of assumptions, impact of inventory management on whole financial performance measures were approved.
Operational innovation, just in time, profitability, financial performance, Tehran Stock Exchange
