The Effect Of Inventory Control On Profit Maximization In A Manufacturing Company (A Study Of Nigeria Breweries Plc And Guinness Nigeria Plc):- Orazulume Marvellous A

ABSTRACT

The study examined the effect of inventory control on profit maximization in a manufacturing company. The objectives of the study are; to determine the effect of inventory turnover and inventory conversion period on return on asset ofmanufacturing industry in Nigeria and to examine the effect of inventory turnover and inventory conversion period on return on equity ofmanufacturing industry in Nigeria. To achieve the objective ofthe study, ex-postfacto research design was adopted. The study adopted secondary data in generating its data through the use ofannual report and account of Nigeria breweries Pic and Guinness pic. In testing the hypotheses, multiple regression analysis was used. The findings revealed that while inventory turnover and inventory conversion period have no significant effect on return on asset ofmanufacturing industry in Nigeria, inventory turnover and inventory conversion period have a significant effect on return on equity of manufacturing industry in Nigeria. The study recommends that manufacturing companies should try by all means to adhere to inventory polices made. A situation is a case whereby materials or items are allowed to leave the stores without proper requisition, this shows that the internal control is weak. In order to ensure that the company adheres to inventory policies, under no circumstance should items of inventory be allowed to leave stores withoutproper requisition.