EFFECT OF INVENTORY MANAGEMENT AND CONTROL ON THE PERFORMANCE OF A BUSINESS ENTERPRISE (A STUDY OF NIGERIAN BREWERIES PLC, ABA)

This research work dealt on Effects of Inventory Management on Performance of Manufacturing Firms using Nigerian Breweries Plc Aba as the study area. The problem that led to the research work were: high operational cost, low productivity and low profitability. The objectives include: to determine the relationship between inventory control and operational cost of an organization to ascertain the relationship between inventory control and organizational productivity, and to determine the relationship between inventory control and organizational profitability. The researcher employed the descriptive research design. The primary and secondary data was used in data collection. The population of the study was 420. The simple random sampling technique was used to draw a simple size of (200) out of the population of (420) employees. The researcher made use of the chi-square (X2) statistical tool to analyze the three hypotheses of the study. At the end, the researcher found out that there is a significant relationship existing between inventory control and operational cost, productivity and profitability. Based on the findings, the researcher recommends that organization should employ effective inventory control and management system if they tend to solve problems like loss sales, shortages, late delivery, loss of customer goodwill and image, failure to satisfy internal customers which affects their operation, excess expenditure and high premium freight costs.