EFFECT OF INVENTORY MANAGEMENT AND CONTROL ON PROFITABILITY OF MANUFACTURING FIRMS IN NIGERIA
Abstract
ABSTRACT
This study focused on the effect of inventory management on the profitability of manufacturing firms in Nigeria. It was guided by three objectives, These objectives sought to: ascertain the effect of cost of raw materials procurement on profit For the year of manufacturing firms; determine the effect of cost of finished goods on the profit For the year of manufacturing firms; and to determine the effect of cost of spare parts on profit For the year of manufacturing firms. The study adopted ex- post facto research design .data covering a period of 10 years (2009-2018) were collected from the three audited manufacturing firms (Nigeria breweries, Dangote sugar Refinery and nestle Nigeria plc). Descriptive statistics was used for pretest analysis while multiple regression was used for test of hypothesis. The study found out that both cost of raw material and spare parts has insignificant and positive effect on profit for the year and that cost of finished product has significant and positive effect on profit for the year. Consequently, it was recommended among others that manufacturing firms should subject their accounting personnel and other staff to regular training on inventory planning and management so as to minimize the benefit they have on profitability.
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