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ABSTRACT
Inventory management has posed a great concern to manufacturing firms. This will be attributed to the very nature of inventory as a major constitute of current assets. Thus, the importance of inventory management cannot be over emphasized since it has been established to play a big role in the continual existence of any manufacturing outpit. The place which inventory occupies in the production processes of manufacturing firms (companies) has prompted the study of its impact on the profitability of such companies. Sales and purchases are the basic trading activities that give rise to profit. Movement of inventory is an indication of the level of activities in a firm. Manufacturing business are flexible and dynamic and the business of Champion Breweries Plc, Uyo, just like that of any other company in manufacturing business should be changing with time. This research examines the impact of inventory management on the profitability of manufacturing firms. To carry out this research, the researcher resorted to the use of questionnaire, oral interview as the major instrument for data collection and chi-square for testing of formulated hypothesis as the statistical tool. After careful analysis of the data, the following were revealed: Proper inventory management has significant impact on the profitability of manufacturing firms, proper authorization of inventory quantity removed from the store for production is maintained; the staff of the company should be motivated towards adequate inventory management through training and seminar; productivity levels of such companies are enhance by proper inventory management. The study concluded with some recommendations that:
a) Staff should be motivated towards profit maximization which is the sole aim of every business enterprise. This should be through appreciation of individual differences in both quality output among staff of the company.
b) In line with staff competition among many manufacturers in Champion Breweries Plc, Uyo, adequate attention should be given for effective and efficient customer services to prevent them from running to other sources of supply.
c) All efforts of Champion Breweries Plc, Uyo should be planned towards making adequate harness of human resources elements in a productive channel through staff training bearing in mind that success or failure of any organization depends on its work force.
d) In the final analysis, the outcome of the research proved that proper inventory management has impact on the profitability of manufacturing firms.
CHAPTER TWO
REVIEW OF RELATED LITERATURE
2.1 Introduction - - - - - - - - 8
2.2 Concept of Inventory Management - - - - 9
2.3 Inventory Classifications - - - - - - 10
2.4 Inventory Procurement Process - - - - - 11
2.5 Inventory Control - - - -- - - - 13
2.6 Cost Associated with Inventory - - - - 15
2.7 Economic Order Quantity (E.O.Q) - - - - 19
2.8 Inventory Levels - - - - - - - 20
2.9 Management Functions - - - - - - - 23
2.10 Need for Inventory Control - - - - - 26
2.11 Methods of Determination Quantity - - - - 28
2.12 Inventory Valuation Method - - - - - 29
2.13 Concept of Profitability - - - - - - 30
CHAPTER THREE
RESEARCH METHODOLOGY AND DESIGN PROCEDURES
3.1 Introduction - - - - - - - 31
3.2 Research Design - -- - - - - - 31
3.3 Area of the Study - - - - - - - 31
3.4 Population of the Study - - - - - - 32
3.5 Sample Size Determination --- -- - - - 32
3.6 Research Instrument - - - - - - 33
3.7 Validation of Research Instrument - - - - 33
3.8 Method of Data Analysis - - - - - 34
CHAPTER FOUR
PRESENTATION, ANALYSIS AND INTERPRETATION OF DATA
4.1 Introduction - - - - - - - 35
4.2 Analysis and Interpretation of Data - - - - 35
4.3 Testing of Hypothesis - - - - - - 40
4.4 Discussion of Findings - - - - - - 43
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATIONS
5.1 Introduction - - - - - - - - 45
5.2 Summary - - - - - - - - 45
5.3 Conclusion - - - - - - - - 46
5.4 Recommendations - - - - - - - 48
References - - - - - - - - 49
Appendix - -- - - - - - - 51
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