INVENTORY MANAGEMENT CONTROL AND PROFITABILITY OF MANUFACTURING ORGNIZATIONS IN NIGERIA

Abstracts

This research study is titled "Inventory Management Control And Profitability Of Manufacturing Firms In Nigeria" using coca-cola company Nigeria plc as a case study in Benin city, Edo state. The general objective was to examine a comprehensive view of inventory management control and profitability, while the specific objectives are to : determine how cost of inventory can affect the Profitability of manufacturing firms, To find out the consequences of ineffective inventory management techniques on profitability, and to ascertain the extent to which inventory shortages affect the manufacturing process and profit level of a firm.The study is centered on the economic order quantity theory, the population of the study consists of 5,364 managements and staffs of coca-cola company Nigeria plc and the sample which comprises of 100 managements and staffs of the company was obtained through the use of Taro Yamane (1967) formula. Two main sources of data was adopted to conduct this study which are the primary and secondary data .The primary data was obtained through the use of a properly structured questionnaire which was distributed to the respondents while the secondary data was obtained from scientific journals, textbooks, research papers, business articles, the internet and reports from the company's website. Descriptive statistics was used to analyse the data collected while the hypothesis were tested using regression analysis at 5% level of significance, the analysis were performed using the statistical package for social sciences (SPSS) version 20. The study revealed that the cost of production as well as inventory cost, and shortage of inventory are the major factors that affect the Profitability of manufacturing firms, while ineffective inventory management techniques has no effect whatsoever on the profit of manufacturing firms.Based on the findings, the study recommended that materials should be properly checked to avoid shortages which can interrupt the production process, inventory should be purchased in bulk to take advantage of discount given by suppliers, the prices of products should be reduced to enable customers purchase more, varieties of products should be made available, employees should be motivated to enable them work effectively and efficiently to achieve the company's goals and aims.