IMPACT OF INVENTORY MANAGEMENT ON MANUFACTURING ORGANIZATION

ABSTRACT This research work was conducted to find out the impact of inventory management on manufacturing organizations with a focus at Cadbury Nigeria Plc, Lagos. The objectives of this study are to explore all areas of inventory and stores management as it affects manufacturing industries. To demonstrate that inventory management development can bring about increased productivity. To highlight various importance of stock and inventory management development and also to prove that a well-designed inventory management could result to profit oriented company and necessitate expansion processes. The data used for this study were collected from primary and secondary sources. Primary data were gathered through the use of questionnaires and personal observations while secondary data were collected through the review of existing literature; these includes textbooks, magazine, journals, Internet, unpublished project works and materials that are relevant to the study. The statistical tool used for the analysis of data and test of hypotheses was simple percentage method. The result obtained shows that Cadbury Plc, has increased productivity through inventory management. This confirmed that inventory management has a positive impact on employee morale and employees’ job satisfaction. Finally based on the findings, it was concluded that organizations and their managements should take inventory management and inventory valuation seriously in order to benefit greatly and as well contribute to nation economy as this will improve the welfare of citizens and the organizations at large. It was recommended among others that organization should create an internal control measure to check the effective performance of inventory and stock management for increased productivity.