Economic Order Quantity Dimensions and Efficiency of Manufacturing Industry in Enugu Metropolis

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• September 18, 2023
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Nwalu, Emmanuela Agatha Chinyere¹, Prof. Christopher C. Orga², & Ugwu, Felix Ikechukwu³ Department of Business Administration, Enugu State University of Science and Technology, Nigeria

This study examined relationship between economic order quantity and efficiency of telecommunication industry in Enugu metropolis. The objectives of the study were to ascertain the degree of relationship between ordering cost and average cost of operation of telecommunication firms in Enugu metropolis and determine the degree of relationship between carrying cost and cost of re-work in telecommunication firms in Enugu metropolis. The descriptive survey research design was adopted in the study. The population of the study was 185 while the sample size of 185 was adopted using complete enumeration. The data were analysed using inferential statistics while the hypotheses were tested using the z-test statistics. The findings included that there was significant positive relationship between ordering cost and average cost of operations of telecommunication firms in Enugu metropolis (Spearman calculated coefficient,0.6 > Spearman table, 0.05) and there was significant positive relationship between carrying cost and cost of re-work in manufacturing industry (Spearman calculated coefficient, 0.9 > Spearman table, 0.05) in Enugu metropolis. This study concluded that economic order quantity had significant positive relationship with the efficiency of the telecommunication industry in Enugu metropolis and it was recommended that management of telecommunication firms should be conscious of the average cost of operation by minimizing the ordering cost of their firms and also try to reduce the carrying cost to avoid re-work that may affect the efficiency of the firm. Keywords Economic Order Quantity; Manufacturing Industry; Enugu Metropolis Citation Nwalu, E. A. C., Orga, C. C. & Ugwu, F. I. (2023). Economic Order Quantity Dimensions and Efficiency of Manufacturing Industry in Enugu Metropolis. International Journal of Economics and Public Policy, 7(2), 26-37 https://doi.org/10.5281/zenodo.8354880