Introduction: Effective Inventory Management for Micro-

Enterprises
This study, titled "Inventory Management as an Effective Tool for Cost Reduction in Micro
Enterprises," investigates the practices and impact of inventory management on micro
enterprises. We employed various statistical methods to analyze data collected from micro
enterprise managers.

Demographic Profile:

• Age: The majority of respondents (24.3%) fall within the 39-45 age range.
• Gender: The distribution is balanced, with 50% male and 50% female managers.
• Business Age: Most micro enterprises have been operating for 9-10 years.

Inventory Management Practices:

• Manual tracking (41%) is the most prevalent inventory management practice among the
surveyed micro enterprises.

Perceptions on Cost Reduction:

We analyzed the level of agreement among respondents regarding the effectiveness of inventory
management practices in reducing costs. The results indicate strong agreement across all aspects:

• Inventory control (mean score: 3.70)

• Financial viability (mean score: 3.72)
• Operational efficiency (mean score: 3.75)

Impact of Implementation:

Similarly, the perceived impact of implementing effective inventory management practices on

cost reduction received strong agreement:

• Inventory control (mean score: 3.71)

• Financial viability (mean score: 3.78)
• Operational efficiency (mean score: 3.76)

Relationship between Inventory Management and Cost Reduction:

Finally, we employed statistical tests to determine the existence of a significant relationship

between effective inventory management and cost reduction. The analysis revealed:

• A significant positive correlation between the two variables for all aspects (inventory
control, financial viability, and operational efficiency).
 • P-values for all aspects were less than 0.05, indicating rejection of the null hypothesis (no
relationship).
• R-values for all aspects were greater than 0, confirming a positive correlation.

These findings strongly suggest that effective inventory management practices are significantly
linked to cost reduction in micro enterprises.