Do inventory management practices affect economic performance? An empirical evaluation of the machine tool SMEs in Bangalore

Inventory management (IM) has a decisive role in the enhancement of manufacturing industry's competitiveness. Therefore, major manufacturing industries are following IM practices with the intention of improving their performance. However, the effort to introduce IM in SMEs is very limited due to lack of initiation, expertise, and financial constraints. This paper aims to provide a guideline for entrepreneurs in enhancing their IM performance, as it presents the results of a survey based study carried out for machine tool Small and Medium Enterprises (SMEs) in Bangalore. Having established the significance of inventory as an input, we probed the relationship between IM performance and economic performance of these SMEs. To the extent possible all the factors of production and performance indicators were deliberately considered in pure economic terms. All economic performance indicators adopted seem to have a positive and significant association with IM performance in SMEs. On the whole, we found that SMEs which are IM efficient are likely to perform better on the economic front also and experience higher returns to scale.

Fuzzy data envelopment analysis for performance evaluation of an irrigation system

Sixteen irrigation subsystems of the Mahi Bajaj Sagar Project, Rajasthan, India, are evaluated and selection of the most suitable/best is made using data envelopment analysis (DEA) in both deterministic and fuzzy environments. Seven performance-related indicators, namely, land development works (LDW), timely supply of inputs (TSI), conjunctive use of water resources (CUW), participation of farmers (PF), environmental conservation (EC), economic impact (EI) and crop productivity (CPR) are considered. Of the seven, LDW, TSI, CUW, PF and EC are considered inputs, whereas CPR and EI are considered outputs for DEA modelling purposes. Spearman rank correlation coefficient values are also computed for various scenarios. It is concluded that DEA in both deterministic and fuzzy environments is useful for the present problem. However, the outcome of fuzzy DEA may be explored for further analysis due to its simple, effective data and discrimination handling procedure. It is inferred that the present study can be explored for similar situations with suitable modifications.