Open AccessConfirmatory Factor Analysis of Industrial Inventory Management Optimization
Author(s) -
Rungroj Subanjui,
Thanatchaporn Thawilpol
Publication year - 2021
Publication title -
wseas transactions on business and economics
Language(s) - English
Resource type - Journals
eISSN - 2224-2899
pISSN - 1109-9526
DOI - 10.37394/23207.2021.18.141
Subject(s) - confirmatory factor analysis , structural equation modeling , reliability (semiconductor) , psychology , index (typography) , cronbach's alpha , statistics , psychometrics , mathematics , computer science , clinical psychology , power (physics) , physics , quantum mechanics , world wide web
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.