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

ABSTRACT Inventory management plays a fundamental role in the operational success of business enterprises, particularly manufacturing organizations that rely heavily on the availability of raw materials and finished goods. Efficient management of inventory ensures smooth production processes, prevents stock-outs, reduces holding costs, and ultimately improves the overall performance of an organization. This study investigates the effects of inventory management and control on the performance of a business enterprise using Nigerian Breweries Plc Aba as a case study. The research aims to examine the inventory control systems adopted by the company, determine the relationship between inventory management practices and organizational performance, and evaluate how effective inventory control contributes to cost reduction and profitability. A descriptive research design was adopted for this study. Data were collected through structured questionnaires distributed to employees of Nigerian Breweries Plc Aba who are directly involved in inventory handling, procurement, and warehouse management. The study also utilized secondary data obtained from journals, textbooks, and company reports related to inventory management practices. Findings from the study revealed that effective inventory management significantly improves business performance by reducing operational costs, minimizing wastage, improving production efficiency, and ensuring product availability. The results further show that proper stock control systems help organizations maintain optimal inventory levels and avoid the financial losses associated with excess inventory or stock shortages. The study concludes that organizations that implement structured inventory control techniques such as Economic Order Quantity (EOQ), Just-in-Time (JIT), and computerized inventory tracking systems are more likely to achieve higher operational efficiency and improved financial performance. The research recommends that Nigerian Breweries Plc and similar manufacturing organizations should strengthen their inventory monitoring systems, adopt modern inventory management technologies, and train staff regularly on effective stock control strategies to enhance productivity and profitability.