Impact of Inventory Management in Downstream Chains on Customer Satisfaction at Manufacturing Firms

The intention was to explore the relationship between inventory management and customer satisfaction in the downstream of manufacturing firms in Pakistan. A quantitative research design was used to found the said relationship. The study consisted of total sample size of 160 respondents with 100 respondents from retailers and 60 were from distributors. The findings of this research specified a significant positive relationship between customer satisfaction and inventory management. The Pearson correlation coefficient values for retailers and distributors were.889** with p < 0.01 and.801** with p < 0.01 after using the variables named customer satisfaction and inventory management respectively. Inventory management had significant influence on customer satisfaction and this was also shore up by the value of adjusted R square. The adjusted R square value indicated that independent factors anticipated the dependent factors by 71%. In conclusion, this research discovered that chain members required using enhanced and superior information systems for better inventory management and well coordinated customer collaboration consequently leading to higher levels of customer satisfaction.