ABSTRACT

For most SMEs in Nigeria, inventory remains the most important asset on their statement of financial position at any given time, hence, the need for it to be effectively managed. This study on inventory management strategies and performance of SMEs in Akwa Ibom State was carried out with the objective of evaluating the contributions of inventory management to the performance of SMEs in Akwa Ibom State. 35 SMEs were selected from the 3 senatorial districts of the state using the judgmental sampling technique because of the researcher’s knowledge of the population. Data was sourced primarily through structured questionnaire and was analyzed using Statistical Packages for the Social Sciences (SPSS). The study, among other findings revealed that there is a negative relationship between cost of inventory management and profitability. It was concluded that the adoption of appropriate inventory management strategy can improve service delivery while also minimizing inherent carrying/handling cost. Continuous training and retraining of staff in order to enhance professionalism particularly with regards to computerized inventory management system was recommended.  

TABLE OF CONTENTS

Cover Page…  …        …        …        …        …        …        …        …        …        i

Title Page…    …        …        …        …        …        …        …        …        …        ii

Declaration…  …        …        …        …        …        …        …        …        …        iii

Certification…            …        …        …        …        …        …        …        …        iv

Dedication…  …        …        …        …        …        …        …        …        …        v

Acknowledgements…            …        …        …        …        …        …        …        …        vi

Abstract…      …        …        …        …        …        …        …        …        …        viii

Table of Contents…   …        …        …        …        …        …        …        …        ix

List of Tables…          …        …        …        …        …        …        …        …        xii

CHAPTER ONE: INTRODUCTION

1.1       Background to the Study…   …        …        …        …        …        …        1

1.2       Statement of the Problem…   …        …        …        …        …        …        3

1.3         Objective of the Study…      …        …        …        …        …        …        4

1.4         Research Questions…           …        …        …        …        …        …        4

1.5         Research Hypothesis…         …        …        …        …        …        …        5

1.6         Significance of the Study…  …        …        …        …        …        …        5

1.7         Scope of the Study…            …        …        …        …        …        …        …        6

1.8         Limitations of the Study…   …        …        …        …        …        …        6

1.9         Organization of the Study… …        …        …        …        …        …        6

1.10       Operational Definition of Terms…   …        …        …        …        …        7

CHAPTER TWO: REVIEW OF RELATED LITERATURE

2.1         Conceptual Framework…     …        …        …        …        …        …        10

2.1.1      Concept of Performance…   …        …        …        …        …        …        10

2.1.2      Concept of Inventory Management…          …        …        …        …        14

2.1.3    Importance of Inventory Management…       …        …        …        …        15

2.2         Theoretical Framework…      …        …        …        …        …        …        17

2.2.1      Economic Order Quantity (EOQ) …            …        …        …        …        …        17

2.2.2      Just- In – Time (JIT) …         …        …        …        …        …        …        18

2.2.3      Material Requirement Planning (MRP) …    …        …        …        …        19

2.2.4      The Action Level Methods of Inventory Management…    …        …        19

2.3         Empirical Review…  …        …        …        …        …        …        …        20

CHAPTER THREE: RESEARCH METHOD

3.1       Research Design…     …        …        …        …        …        …        …        32

3.2       Population of the Study…      …        …        …        …        …        …        32

3.3       Sample Size… …        …        …        …        …        …        …        …        33

3.4       Sample and Sampling Techniques…  …        …        …        …        …        33

3.5       Instrument for Data Collection…       …        …        …        …        …        34

 3.6      Validity and Reliability of Instrument…       …        …        …        …        34

3.7       Model Specifications…          …        …        …        …        …        …        35

3.8       Method of Data Analysis…   …        …        …        …        …        …        36

CHAPTER FOUR: DATA PRESENTATION, ANALYSIS AND INTERPRETATION

4.1       Introduction… …        …        …        …        …        …        …        …        37

4.2       Presentation of Data…            …        …        …        …        …        …        …        37

4.3       Inventory Costs…       …        …        …        …        …        …        …        38

4.4       Interpretation of Result…      …        …        …        …        …        …        41

CHAPTER FIVE: SUMMARY, CONCLUSION AND RECOMMENDATION

5.1       Introduction…            …        …        …        …        …        …        …        …        43

5.2       Summary of Findings…         …        …        …        …        …        …        43

5.3       Conclusion…  …        …        …        …        …        …        …        …        44

5.4       Recommendations…  …        …        …        …        …        …        …        45

REFERENCES…       …        …        …        …        …        …        …        46

APPENDIX… …        …        …        …        …        …        …        …        48