Inventory Management: An Effective Tool For Optimizing Profitability In The Manufacturing Industry. (A Case Study Of beta Glass Company Plc, Delta Plant Ughelli):-Igwe, Okoji P

ABSTRACT

Inventory play a key role in manufacturing firms as it represents the major component ofmanufacturing cost and profitability. The accumulation of, and need for materials in the form of inventories, is a significant variable for managers to concentrate on, monitor and control. This study therefore examined the effect of Inventory Management on the profitability of Nigerian Manufacturing firms using a case study of Beta Glass Pic. Data was collected through a structured questionnaire, relevant publications and interview with key individuals in the company. The results showed that there was significant increase in the company’s profitability as a result of efficient « management ofmaterials, which was aided by inter-departmental coordination among materials related departments, inventory management, good relationship with vendors, and state-of-the-art facilities/ICT. However, the major constraints to inventory Management in the company included fraud, theft, inventory shortage and material wastage. This study advocated that priority should be given to inventory Management in Beta Glass Manufacturing Industry' in order to achieve significant cost saving, improvement in production efficiency, and increase in profitability and competitiveness. Recommendation was 'made for government to provide adequate infrastructural supports to boost inventory Management in Nigerian Manufacturing Industry.