INVENTORY MANAGEMENT PRACTICES AND ORGANISATIONAL PROFITABILITY LEVEL: A CASE STUDY OF FURNITURE MANUFACTURING FIRMS, EDO STATE

ABSTRACT

This study aimed to assess the effect of inventory management practices on organizational profitability level, focusing on furniture manufacturing firms as the case study. The main issue identified was the fact that maintaining inventory is expensive and not all organization have fully understood the impact on profit of the firm. The objective of the research was to determine how inventory management contribute to cost reduction and profitability in an organization. Primary data were collected to address the research problems and objectives. The respondents included selected employees from different furniture manufacturing firm along Wire road, Benin, Edo state, s for questionnaire administration. The collected data was organized and presented using tables, frequency counts, and percentages. Various hypotheses were tested, including regression analysis and analysis of variance (ANOVA) at 0.00 level of significance. The findings revealed the importance of effective demand forecasting of inventory on profitability and customer satisfaction. Recommendations were provided, such as inventory management practices should be given attention to because it increases sales of the firm. Inventory management practices should be well organized and executed to have maximum impact. This would enhance the growth and efficient production of the firm; organizations can liaise with community authorities to identify areas or opportunities available to improve the provisions of raw materials so as ensure that there are enough materials for production. Overall, this research adds to the existing literature on inventory management and profitability level in Nigeria and offers valuable insights and recommendations for industry practitioners and policymakers.