ABSTRACT

In many organizations, inventories constitute a sizeable proportion of their working capital and as such, the amount of capital tied up in them is a major determinant of the flexibility and/or success of the firms. With the attendant problems of recession, investments in inventory demand careful considerations. It is in line with this that the I study foeüed in the main on how firms manage their inventories within recession to attain the overall objective of the firms. I For a detailed treatment of all the relevant facets of the study, it I was divided into five chapters. To facilitate the work involved, four I hypothesis were drawn. I A field survey was used to establish the validity of otherwise of the hypotheses based in the main on the data collected through I questionnaires and interviews drown on the staff of the organizations. I Frequency distributions and percentages were employed in the 1 analysis of data. Chi-square (X2) as a measure of significance was I used to test the hypotheses. On the basis of the findings, three of the hypotheses were I validated wheres one was nullified. The findings revealed that there is usually heightened concern for effective inventory management I I I ' I 1 I 1 I I I v during inflation, low capacity utilization often increases the need for effective inventory control, the size of the firm determines the inventory control system adopted and the need to hedge against stockouts often does not lead too high inventory costs, etc. Infact, it was found that management could not have controlled their inventories well during this period if they did not fully understand the importance of the function. Recommendations were then preferred on how best to use inventory management and control in the attainment of business goals which include judging the optimal level of inventories in relation to the flexibility inventories in relation to the flexibility inventories afford, defining the purpose for which a product is made, reviewing and/or reorganizing production schedules and/or distribution methods to reduce inventory levels, enhancement of communication system, development of indigenous systematic analytical approach, establishment of research and dev210pment department, etc. Finally, a conclusion was attempted.