ABSTRACT

 Inventory occupies more than 60% of most manufacturing companies. Hence, this study aims at determining the evaluation of inventory management and control technique on the performance of a manufacturing company. This work identifies the necessary problems that management faces in other to manage her inventory. The work looks at some objectives that could enable the researcher see how the problems of managing inventory could be curbed. In the process of this, the researcher formulated three hypotheses. Hypotheses one tries to identify if there is any significant relationship between investment in inventory and the firm's profit before tax. Hypotheses two looks at the effect of optimum level of investment in inventory on the firm's retained earnings. While hypotheses three tries to identify if there is significant effect between the optimum level of investment in inventory and the liquidity of the firm. It also makes references to several literatures and adopted both survey and longitudinal method via the issue of questionnaire to obtain necessary data and also a five years financial report of the company for effective and an efficient analysis of it objectives. The study finding(s) show that the alternative hypotheses will be accepted; thereby, rejecting the null hypotheses which indicate that, investment in inventory contribute to the profitability, retained earnings and liquidity of the company thereby increases the net worth of the company which indicate continuity for the company. It therefore recommends that manufacturing firm should not tie up inventory which could lead to deterioration and reduce the net worth of the company, thereby making continuity very difficult; this could lead to bankruptcy.