INVENTORY MANAGEMENT AND PERFORMANCE OF MANUFACTURING FIRMS: A STUDY OF BAKERIES IN IBARAPA AREA OF OYO STATE
Abstract
ABSTRACT
This study investigated inventory management and performance of manufacturing firms, a study of selected bakeries in Ibarapa Area of Oyo State. It employed questionnaire as instrument of research while data were analysed using both descriptive and inferential statistics. It was found that inventory management practices have a statistically significant positive impact on the operational efficiency of bakeries in the Ibarapa Area of Oyo State as indicated by coefficient (β = 0.531), t-statistic of 6.398 and a p-value of 0.000 (p < 0.05) confirm that this relationship is highly significant. The relatively high R value (0.697) implies a strong positive correlation between the two variables. Findings indicate a significant positive relationship between inventory control techniques and the financial performance of bakeries as revealed by coefficient (β = 0.487) and a p-value of 0.000 (p < 0.05) which is less than the threshold. Further, a statistically significant negative relationship was found between the challenges faced by bakeries and the effectiveness of their inventory management systems with the coefficient (β = -0.442), a t-statistic of -5.200 and a p-value of 0.000 (p < 0.05). The study established that the adoption of effective inventory control techniques positively influences the financial performance of bakeries. Thus, it was recommended that bakery owners and managers should implement standardized inventory management procedures to minimize production delays and wastages, and to improve effective utilization of raw materials with improved operational efficiency.
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