Impact Of Inventory Management On The Performance Of Selected Manufacturing Companies In Nigeria (A Case Study Of Pz Cussons Nig. Plc)

ABSTRACT

Problems of inventory management and control have been around for a very long time. The need to collect goods when it is readily available and then store it for times of shortage is perhaps the fundamental stock holding problem which was tackled long ago by man. Nowadays, we usually think of stocks being held by organizations to allow efficient and continuous operations. The study aimed at determining the impact of inventory management on the performance of selected manufacturing companies in Nigeria. This research project reviews nature of inventories, reasons and importance of holding inventories, inventory control techniques, and also price valuation techniques with its relevance to firm 's financial statement. The source of data used was strictly secondary source using PZ Cussons Nig. Plc 's annual reports. Data collected were analyzed using tables while the hypotheses were tested using the multiple regression models. The study found out that PZ Cussons Nig. Plc operate inventory level that minimize the total ordering and holding costs, avoiding stock outs, excess stockholding, productions breaks etc. it there/bre, recommends that inventory should he taken seriously in the firm as this is likely going to make the control in stock system more effective and thus, lead to actualization of profit maximization. Also , the need for management of manufacturing firms to formulate inventory policies that will result in optimum inventory investment, promote efficiency and control errors, fraud and waste were also recommended.