Inventory Control And The Performance Of Manufacturing Companies In Nigeria (With Nigeria Breweries, As Case Study)

ABSTRACT

The study investigated the effect of inventory control on the performance manufacturing companies in Nigeria.  To achieve this objective, the study specifically investigated the effect Inventory Turnover (IT) on Return on Equity (ROE), effect of Inventory Turnover on Return on Asset (ROA),  effect of Inventory Turnover on Gross Profit Margin (GPM) on manufacturing companies in Nigeria.  The study restricted its scope to the period 2008-2017 and data used for the study was adopted from the Nigeria Breweries pie, Annual Report. The simple regression method was employed as the analytical tool. Findings show that Inventory Turnover proxy for  Inventory control  has  a  negative relationship  with  both ROA  and  GPM  with ROE  being insignificant and GPM significant. However, IT has a positive relationship with ROE and there is moderate positive  correlation between (ROA and ROE) and a weak positive    correlation   between   GPM   and   IT     The   study   recommends   that manufacturing companies should adopt and emphasize on effecting and efficient inventory cost management practices  as well as deploying modern technology for effective inventory cost management.