The Impact Of Lean Manufacturing On Operational Performance Through Vendor-Managed Inventory And Supply Chain Practices

This study investigates the impact of lean manufacturing on operational performance
through vendor-managed inventory and supply chain practices as the mediating variable. The
study used the population of the manufacturing company domiciled in east Java, Indonesia. Data
collection used a questionnaire designed with a five-point Likert scale. The study sample is 111
manufacturing companies from 5420 manufacturing companies domiciled in East Java. Data
analysis used partial least square (PLS) technique using smarPLS software version 3.3. The result
indicated that nine hypotheses developed were supported in this study. Lean manufacturing
affects vendor-managed inventory, supply chain practices, and operational performance. Vendor�managed inventory and supply chain practices directly affect operational performance. Lean
manufacturing indirectly improves operational performance through the mediating role of
vendor-managed inventory and supply chain practices. This research provides a managerial
implication on how to improve the operational performance in supply chain management. This
study also could contribute to the current supply chain management theory