Effect Of Inventory Management Methods On Corporate Performance Of Selected Manufacturing Companies.

ABSTRACT

The title of this work is the effect of inventory management methods on corporate performance of selected manufacturing firms. The background of the study brings to limelight the fact that manufacturing companies often shut down once in a while, not because of labour unrest or government regulations but because management have failed to answer some basic questions concerning inventory. The work set out an objective which is to examine the effect of inventory management on the corporate performance of manufacturing companies in Nigeria so as to determine the method which tends to serve manufacturing needs adequately. It was declared as statement of the problem that Nigerian manufacturing companies lack adequate inventory control methods. The study adopted a survey method of data collection using the instrument of question to collect data from the primary source. The data collected was analyzed and the hypotheses tested using regression model and Pearson correlation coefficient. It was found out that LIFO, FIFO and uT methods are being applied in Nigeria by various companies, while some companies make use of intuition to control inventories. It was recommended that the manufacturing companies no matter how small should develop inventory control methods suitable to the needs of the company and concluded by advising the various companies to create more time in assessing the level of its inventory so as to maximize profit, maintain goodwill of the firm and control a large share of the market.