ABSTRACT
Obviously, there has been a remarkable poor influence of
some key participants in the economic sector. This is made manifest in the
recording of operational losses in view of profits which eventually leads to
liquidation and winding Lip of most companies, unnecessary reduction in the
already achieved capacity and the worsening of the unemployment syndrome. It
will interest the businessman to control this bad condition of business in
order to forge: ahead and remain in operation. Meanwhile, a close observation
of the role of inventory might suggest that adequate management of inventory might
become a solution to the problem. Hence, the research focused attention on
finding out the role played by inventories in the operation of a business. It
also tried to find out the influence of inventory management on the volume of
profits as well as verifying the extent to which the various cost associated
with inventory affect the performance of companies. Consequently, some
recommendations were made. To carry out this research, Star paper mill was used
as a case study. Data were collected from it through the use of questionnaires,
oral interviews and observations were the primary data source while library
research was the secondary source of data. A sample size of 30 was distributed
and 25 as determined mathematically was used as a basis for the drawing of the
sample which was done randomly. For the test of the formulated hypothesis, the
chi-square was used. The carrying out of this research work revealed that the
company has experienced staff to handle the management of inventory items.
There is a remarkable reduction in pilferage rate, defalcation, holding cost
and ordering cost e.t.c; adequate control and monitoring technique are employed
to enhance an efficient and effective inventory management. The timing of
inventory items in superb, shortage and overstocking are avoided, with bulk
purchasing of inventory items as a policy; inventory management whether good or
bad, has a great impact in the profitability of companies. Following the
conclusion of the research work, some key recommendations were made as follows:
A certain level of stock should be kept as a buffer stock. There should be well
segregation of duties with regard to invention counting. There should be a
creation of a separate section to take the responsibility of the control of
inventory to be managed by a well trained staff. There should be a significant
reduction in the dependence on the imported raw materials. Finally, efforts
should be made to provide motivational incentives to workers to ensure their
full commitment to duty.
MBA, O (2021). Inventory Management And Profitability In The Manufacturing Industry. Mouau.afribary.org: Retrieved Nov 01, 2024, from https://repository.mouau.edu.ng/work/view/inventory-management-and-profitability-in-the-manufacturing-industry-7-2
ONYINYECHI, MBA. "Inventory Management And Profitability In The Manufacturing Industry" Mouau.afribary.org. Mouau.afribary.org, 14 Jul. 2021, https://repository.mouau.edu.ng/work/view/inventory-management-and-profitability-in-the-manufacturing-industry-7-2. Accessed 01 Nov. 2024.
ONYINYECHI, MBA. "Inventory Management And Profitability In The Manufacturing Industry". Mouau.afribary.org, Mouau.afribary.org, 14 Jul. 2021. Web. 01 Nov. 2024. < https://repository.mouau.edu.ng/work/view/inventory-management-and-profitability-in-the-manufacturing-industry-7-2 >.
ONYINYECHI, MBA. "Inventory Management And Profitability In The Manufacturing Industry" Mouau.afribary.org (2021). Accessed 01 Nov. 2024. https://repository.mouau.edu.ng/work/view/inventory-management-and-profitability-in-the-manufacturing-industry-7-2