INVENTORY MANAGEMENT PRACTICES AND FIRMS PERFORMANCE IN THE NIGERIA MANUFACTURING SECTOR

ABSTRACT

 The study examined inventory management practices and firms performances in the Nigerian manufacturing sector. The objective of the study was to examine the nature of the relationship between inventory investment and organizational performance; to determine the effect of inventory shrinkage on organizational performance; examine the effect of inventory control on organizational performance and to identify the influence of inventory turnover on the organizational performance. The survey research design was adopted for this study. 376 copies of questionnaire were administered to employees of Guinness Nigeria Plc. Data collected were analyzed using frequency count, percentages, mean and multiple regression techniques via the Statistical Package for Social Sciences (SPSS) 24.0. The empirical result showed that that inventory management practices significantly affect firms’ performances. The study concluded that there was need for manufacturing firms to use inventory management practices as it contribute a lot to organizational productivity. This is because an effective inventory management system has an overall impact in enhancing organizational productivity. The study recommends that companies in manufacturing sector should ensure efficient inventory management system inventory by maintaining an appropriate inventory investment to enhance productivity and profitability.