Author(s): Rungroj Subanjui, Thanatchaporn Thawilpol
Abstract: This research aimed to analyze the confirmatory factors and validate the compliance between the confirmatory factor structure of industrial inventory management optimization and empirical data. The sample were 500 industrial executives in Thailand. The research tool was a questionnaire, with a reliability value of 0.95. The data was analyzed with confirmatory factor analysis and second order confirmatory factor analysis. The results found that the factors of inventory management optimization comprised four factors based on the Deming Cycle, including Planning (Plan), Implementation (Do), Assessment (Check), and Improvement (Act). The findings of first order confirmatory factor analysis showed that all index values were over the criteria with a composition weight of 0.72-0.87 at a statistical significance level of 0.01. The second order confirmatory factor analysis showed that all index values were over the criteria with a composition weight of 0.86-0.91 at a statistical significance level of 0.01. The model was congruent with the empirical data. The results of model validation indicated the p = 0.46, CMIN/DF = 0.99, GFI = 0.99 and RMSEA = 0.00. The results of this research could be applied for further improvement of the efficiency of the organization's inventory management.
Keywords: industry, factors, confirmative component analysis, optimization, inventory management, deming cycle
DOI: 10.37394/23207.2021.18.141WSEAS Transactions on Business and Economics, ISSN / E-ISSN: 1109-9526 / 2224-2899, Volume 18, 2021, Art. #141