An Empirical Study on the Relationship between the Inventory Management in the Supply Chain and Enterprise Performance in the Textile and Garment Industry

The 43 textile and 23 garment enterprises were selected as the research object. Panel Data analysis method was used to thoroughly analyze the factors of inventory management in the supply chain in textile and garment industry from 1996 to 2006 and how the inventory management influenced the enterprise performance. The result revealed that the inventory turnover are negatively associated with gross margin, the inventory turnover are negatively associated with the ratio of inventory. And the inventory turnover are negatively associated with the lead time, the inventory turnover are positively associate with company size. After that, ROA is positively associated with the inventory turnover.