Effect Of Inventory Management On The Financial Performance Of Manufacturing Firms In Nigeria (2003-2013) (A Case Study Of Unilever And Cadbury Plc)

ABSTRACT

The study was carried out specifically to empirically ascertaining the effect of inventory management on the financial performance of manufacturing firms in Nigeria from 2003 to 2013. One multiple regression model and one correlation coefficient was specify for the study. The two data analysis techniques were estimated secondary data obtained from financial statement of Unilever and Cadbury plc. The empirical results indicated that there was a relative but insignificant effect of raw and other package material, work in progress, engineering space on profitability and there was positive and significant effect of finished goods on profitability. There was also positive relationship between profitability and total inventory management. It was recommended that the manufacturing firms should adjust the level of work in progress that is needed to support their manufacturing operations. The current level of raw and other package material, work in progress, engineering space are having a negative effect on profitability and needs to be adjusted according to make the inventory management system more effective.