ABSTRACT

Great emphasis has been placed on the economic improvement in production and profits of enterprises through the functionalization of inventory management. Industrialization can increase considerably given production at the right time, quality and quantity at a minimal cost. Hence, it is the purpose of this study to find out, the effective inventory control method, if, any, that act as enhancement to profit and production in manufacturing companies. Again, the essence of inventory management is that some necessary steps or procedures are followed so as to arrive at an inventory control system that offers the best in terms of effectiveness via making available, useful information on the availability of inventory. Moreover, the research made use of both primary and secondary sources in collection of data. The primary sources were from data collected from the Nigeria Breweries Plc, Aba Plant, the secondary sources of data are those that were existing prior to the commencement of this research in books and other documented materials. Simple percentage and chi - square methods were statistical methods used in the analysis of the information with the help of tables. The hypothesis testing was also conducted. Based on the data analysis, the following findings were made: Holding large quantity of inventory increase warehouse cost, handling cost, and insurance cost, Effective control of inventory leads to reduction in holding cost and consequently increases profitability, and Holding of sufficient quantity of finished goods enhances smooth sales operation. Some recommendations were made based on the above findings as follows: There should be an autonomous store department managed by a responsible and qualified official. Stock taking should be done on both continuous basis and periodic basis. This will prevent fraud, pilfering and falsification of' records. The present method of valuating stock should be discouraged since the materials price fluctuates daily, last-in-first-out (LIFO) method of valuation is highly recommended. To ensure effective control, those in charge of stock should not participate in stock taking in order to avoid manipulation of figures in the stock cards. Effort should be made by the management to computerize all aspects in inventory management.