The role of inventory management is to ensure that the needed materials and spare parts are made available at the places, time, proportions, and conditions necessary for production to turn out the desired outputs. Inventory management is all about ensuring the availability of the production inputs of materials and effectively and efficiently controlling the costs of the operation (Olakunle,2004). As the buyers' market is gradually emerging and taking over in many of our industries, the competition for raw materials and component parts now need to be sourced from very many and far places as the location of industries is now mainly determined by market forces rather than the sources of materials inputs (Olakunle, 2004). NAFDAC (2006) study reveals that with the global economic recession of the early 1980s and the introduction of the Structural Adjustment Programme (SAP) in Nigeria in 1986, the costs of both imported and locally• sourced material production inputs have increased tremendously However, in the past, inventory management was not seen to be necessary. In fact excess inventories were considered as indication of wealth. Management by then considered over stocking beneficial. But today firms have started to embrace effective inventory management (Susan & Michael, 2000). Managers, now more than ever before, need reliable and effective inventory control in order to reduce costs and remain competitive (Closs,1989).According to Dobler and Burt (2006), inventory alone account for as much as 30% of the organization invested capital. Drury (2004) asserts that inventory costs include holding costs, ordering costs and shortage costs. Holding costs relate to costs of having physical items in stock. These include insurance, obsolescence and opportunity costs associated with having funds which could be elsewhere but are tied up in inventory. Effective Inventory management and control systems are critical to the financial performance of many companies. Many Adventist Institutions have trouble resulting from operating losses and cash flow problems. This could be because of low income, poor management of inventory systems, and lack of financial discipline. Financial performance compnses of the actual output or results of an organization as measured against its intended outputs (goals and objectives). According to Richard (2010) :financial performance encompasses the specific area of firm outcomes include return of equity, return on asset, return on investment.
In the light of the above, the research work is set to determine the effect of Inventory management on :financial performance of Dangote Nigeria plc.
ONYEAMA, C (2021). Effects Of Inventory Management On The Financial Performance Of Dangote Nigeria Plc: 2012-2016. Mouau.afribary.org: Retrieved Oct 31, 2024, from https://repository.mouau.edu.ng/work/view/effects-of-inventory-management-on-the-financial-performance-of-dangote-nigeria-plc-2012-2016-7-2
CHARLES, ONYEAMA. "Effects Of Inventory Management On The Financial Performance Of Dangote Nigeria Plc: 2012-2016" Mouau.afribary.org. Mouau.afribary.org, 30 Apr. 2021, https://repository.mouau.edu.ng/work/view/effects-of-inventory-management-on-the-financial-performance-of-dangote-nigeria-plc-2012-2016-7-2. Accessed 31 Oct. 2024.
CHARLES, ONYEAMA. "Effects Of Inventory Management On The Financial Performance Of Dangote Nigeria Plc: 2012-2016". Mouau.afribary.org, Mouau.afribary.org, 30 Apr. 2021. Web. 31 Oct. 2024. < https://repository.mouau.edu.ng/work/view/effects-of-inventory-management-on-the-financial-performance-of-dangote-nigeria-plc-2012-2016-7-2 >.
CHARLES, ONYEAMA. "Effects Of Inventory Management On The Financial Performance Of Dangote Nigeria Plc: 2012-2016" Mouau.afribary.org (2021). Accessed 31 Oct. 2024. https://repository.mouau.edu.ng/work/view/effects-of-inventory-management-on-the-financial-performance-of-dangote-nigeria-plc-2012-2016-7-2