ABSTRACT
This
investigated the effect of inventory control technique on the profitability of
manufacturing industries: a study ofNigerian Breweries. Inventory represents an
important decision variable at all stages of product manufacturing,
distribution and sales, in addition to being a major portion of current assets
of many organizations. Too much and too low inventories bring down the level of
profitability of an organization. Therefore, whether it is a manufacturing or
merchandized organization, the goal should always be the same that is, to
ensure tire inventory is ready and at the same time inventory is at an optimum
level. The study used return on assets (ROA) as a measure of profitability. The
changes in return on assets were explained by economic order quantity model
(EOQ), ordering cost (ORC) and (CAC) carrying cost which were used as
independent variables. The data collected from statement of financial position
of the selected industry was analyzed using Ordinary least squares (OLS). The
results ofthe analysis indicated that the inventory control techniques
variables jointly influenced about (R2 = 0.304582) 30.45% ofthe total
variations in the profitability while F-stat value of 2.1899 at 5% level showed
that the model was rightly aggregated. The study recommend that Nigerian
breweries ltd should adopt effective inventory control management practices like
first-in-first out and minimum inventory requirement strategy. This is because
such inventory management practices would improve their profitability and
operating cash flows, the management of the industry to develop effective and
strategic policies and guidelines on inventory control to guide the staff to
ensure they hold optimal inventory levels. Holding optimal inventory would help
the firm to minimize costs and maximize their profitability and operating cash
flows, the management ofNigerian breweries ltd should focus on growing their
working capital since optimum working capital leads to intensive firm
activities and grows profitability level.
JOHNSON, J (2024). Effect of inventory control techniques on the profitability!* of manufacturing industries in Nigeria (A Study of Nigeria Breweries plc):- Johnson, Nkeiruka J. Mouau.afribary.org: Retrieved Oct 30, 2024, from https://repository.mouau.edu.ng/work/view/effect-of-inventory-control-techniques-on-the-profitability-of-manufacturing-industries-in-nigeria-a-study-of-nigeria-breweries-plc-johnson-nkeiruka-j-7-2
JOHNSON, JOHNSON. "Effect of inventory control techniques on the profitability!* of manufacturing industries in Nigeria (A Study of Nigeria Breweries plc):- Johnson, Nkeiruka J" Mouau.afribary.org. Mouau.afribary.org, 07 Aug. 2024, https://repository.mouau.edu.ng/work/view/effect-of-inventory-control-techniques-on-the-profitability-of-manufacturing-industries-in-nigeria-a-study-of-nigeria-breweries-plc-johnson-nkeiruka-j-7-2. Accessed 30 Oct. 2024.
JOHNSON, JOHNSON. "Effect of inventory control techniques on the profitability!* of manufacturing industries in Nigeria (A Study of Nigeria Breweries plc):- Johnson, Nkeiruka J". Mouau.afribary.org, Mouau.afribary.org, 07 Aug. 2024. Web. 30 Oct. 2024. < https://repository.mouau.edu.ng/work/view/effect-of-inventory-control-techniques-on-the-profitability-of-manufacturing-industries-in-nigeria-a-study-of-nigeria-breweries-plc-johnson-nkeiruka-j-7-2 >.
JOHNSON, JOHNSON. "Effect of inventory control techniques on the profitability!* of manufacturing industries in Nigeria (A Study of Nigeria Breweries plc):- Johnson, Nkeiruka J" Mouau.afribary.org (2024). Accessed 30 Oct. 2024. https://repository.mouau.edu.ng/work/view/effect-of-inventory-control-techniques-on-the-profitability-of-manufacturing-industries-in-nigeria-a-study-of-nigeria-breweries-plc-johnson-nkeiruka-j-7-2