Impact of Effective Inventory Control Measure as A Necessary Tool in Improving Organizational Performance (A Study of Nigeria Breweries Pie Aba, Abia State)

ABSTRACT

In few decades ago, inventory control was not seen to be necessary, and excess of inventories were considered as indications of wealth. Management by then considered overstocking beneficial but currently, firms' have embrace effective inventory control due to its strategic role in organizational performance. Consequently, managing inventory efficiently has become an important operational weapon for products and service firms wishing to survive the competitive pressures and most of these firms hold inventory so as to meet their customers' needs (Etim, John and Ime, 2014). Inventory constitutes the most significant part of current assets of firms and because of the relative largeness of inventories maintained by the firms, a considerable amount of fund is being committed to holding inventory. It thus, becomes essential to deploy cutting-edge techniques to manage inventories so as to avoid lost sales, costs of changing production rates, overtime costs, sub-contracting, unnecessary cost of sales and backorder penalties during periods of peak demand (Wilfred, 2014).