EFFECT OF INVENTORY MANAGEMENT ON THE PERFORMANCE OF MANUFACTURING COMPANIES IN NIGERIA

Overview
Cite Work

Abstract

Inventory management is the most important part of any business especially for manufacturing companies. This research work reports

the findings on inventory management and its impact on Nigerian Breweries Aba. It specifically examined the

relationship between inventory management and company’s performance.Record analysis of relevant data was obtained from the company’s annual report and journals from 2010 to 2014.The relationship between the inventory management and company performance was determined based on profit before tax (PBT), turnover, and return on assets (ROA) using regression analysis. The research found that inventory management has significant impact on the performance of a firm. The study also proved that there was a significant relationship between profits before tax (PBT), turnover (TO). But no significant effect on return on asset (ROA) and inventory management. Therefore, the researcher in this study suggests that inventory management can improve Profitability and turnover of manufacturing companies. Recommendations for future study were also discussed.

TABLEOF CONTENTS

Abstract

CHAPTER ONE: INTRODUCTION

1.1 Background of the Study...........................................................................

1.2 Statement of Problem................................................................................ 4

1.3 Objective of the study............................................................................... 6

1.4 Research Questions................................................................................... 6

1.5 Research Hypothesis................................................................................. 7

1.6 Significance of the study........................................................................... 7

1.7 Scope of the Study.................................................................................... 8

1.8 Definition of Terms.................................................................................. 9

CHAPTER TWO: REVIEW OF RELATED LITERATURE

2.1 General Overview of Nigeria Breweries................................................... 11

2.2 Concept of Inventory.............................................................................. 12

2.2.1 Types of Inventory ................................................................................. 14

2.2.2 Reasons for Inventory............................................................................. 16

2.3 Inventory Management........................................................................... 18

2.3.1 Inventory levels ..................................................................................... 19

2.3.2 Inventory Costs ...................................................................................... 20

2.3.4 Customer satisfaction............................................................................... 20

2.4 Inventory Management Techniques......................................................... 22

2.4.1 Economic Order Quantity (EOQ) Model.................................................. 22

2.4.2 Just in time (J.I.T) .................................................................................. 24

2.4.3 The Action Level Methods of Inventory Management ............................. 24

2.5 Theoretical Framework .......................................................................... 25

2.5.1 Relationship Marketing Theory.............................................................. 25

2.5.2 Assimilation Theory .............................................................................. 26

2.6 Empirical Review................................................................................... 27

CHAPTER THREE:RESEARCH METHODOLOGY

3.1 Research Design ................................................................................... 31

3.2 Area of the Study ................................................................................... 31

3.3 Sources of Data ..................................................................................... 31

3.4 Data Analysis Technique........................................................................ 32

3.5 Model Specification................................................................................ 32

CHAPTER FOUR: DATA PRESENTATION AND ANALYSIS

4.1 Data Presentation.................................................................................... 34

4.2 Data Analysis......................................................................................... 34

4.3 Test of hypothesis .................................................................................. 34

4.3.1 Test of hypothesis One............................................................................. 35

4.3.2 Test of hypothesis Two............................................................................ 36

4.3.3 Test of hypothesis Three.......................................................................... 37

4.4 Discussion of result ................................................................................ 38

CHAPTER
FIVE:SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS

5.2 Summary of Findings.............................................................................. 39

5.3 Conclusion............................................................................................. 39

5.3 Recommendations.................................................................................. 40

5.3 Limitation of the Study........................................................................... 41

References....................................................................................................... 42

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EFFECT OF INVENTORY MANAGEMENT ON THE PERFORMANCE OF MANUFACTURING COMPANIES IN NIGERIA

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