Effect Of Inventory Management On The Profitability Of Manufacturing Companies In Nigeria (A Study Of Guiness Plc).:- Mbanefo Chinedu I.

ABSTRACT

 Inventory management has remained one ofthe organizationalpriority in terms ofefficiency and effectiveness. The entire concept ofcontrol is to save time and reduce waste thus inventory management has been adopted by severalfirms and companies to facilitate efficiency and effectiveness. This work examined inventory control as means of promoting organizational growth and performance. Basically his work adopted Guinness Nigeria as a study area where their annual reportfor 10 yearsfrom 2006-2015. Where the performance indicators Net Profit Margin (NPM), Return on Asset (ROA), Return on Capital Employed (ROCE) and Asset change were adopted as proxies. These were compared with the inventory turnover for the years ofstudy. The regression Ordinary Least Square (OLS) was adopted and the descriptive model was applied in to establish the relationship between Inventory Turnover and performance indicators. The results showed that inventory turnover is negatively related with NPM, ROCE,ROA and asset change. However, there were positive changes in the performance indicators thus, this work concluded that there is an impact ofinventory control as a toolfor organizational growth and performance. Thus, this work recommended that since different companies and organizations adopt different inventory management technique there should befurther research on this topic and otherfacilitators ofperformance should be researched on to know their impact.