THE IMPACT OF EFFECTIVE INVENTORY MANAGEMENT IN NIGERIA COMPANIES
This study examines the impact of effective inventory management in Nigerian companies with particular emphasis on beta glass plc and life flour mills. The aim of the study to determine to what extent the ineffective management of inventory has caused low productivity in Nigerian companies and to examine the extent to which insufficient inventory of finished goods cause loss of sales to the companies. In carrying out this study, Structured questionnaires were administered to 106 respondents randomly selected from the employees of Life Flour Mills, Sapele and Beta Glass Plc, Ughelli both in Delta State.Statistical tool used for this work is Chi-square and a research design was adopted with a sample size of the employees of the two companies. Based on the analysis, it was discovered that inventory management plays a vital role in the Nigerian companies. It was also discovered that inventory is the bedrock in the existence of any Nigerian company and effective management of inventory will lead to effective control of the organization. The researcher recommended that company should try by all means to adhere to inventory polices made. In order to ensure that the company adheres to inventory policies, under no circumstance should items of inventory be allowed to leave stores without proper requisition.
1.2 STATEMENT OF THE PROBLEM The problems seen in the course of this study are as follows:- i. Ineffective management of inventory in some selected Nigerian companies. ii. Loss of sales or business of the company as a result of insufficient inventories of finished goods. iii. Low productivity in these companies as a result of poor inventories model used by the companies iv. Poor management and control of inventories in Nigerian companies.
1.3 PURPOSE OF THE STUDY The major objective of this study is to determine of the effectiveness of inventory management in a manufacturing company. The specific objectives of this study are as follows:- i. To determine to what extent the ineffective management of inventory has caused low productivity in Nigerian companies. ii. To examine the extent to which insufficient inventory of finished goods cause loss of sales to the companies. iii. To identify the degree to which poor inventory modern used by these companies has resulted to low productivity. iv. To ascertain whether these companies has suffered from poor management and control of inventories.
1.4 RESEARCH QUESTIONS Research questions refer to the major questions to which the researcher seeks to provide answers during the course of the investigation (Olannye, 2006). For the purpose of this research study, the following research questions are formulated: 1. Does effective inventory control ensure continuous production of goods in Nigerian companies? 2. What is the state of inventory management in Nigeria companies? 3. Has effective inventory control made a significant impact on Nigerian companies?
1.5 HYPOTHESES Based on the problems and objectives of this study, the following hypotheses are formulated for this research. HYPOTHESES I Ho1: There is no significant relationship between low productivity and poor inventories management. HYPOTESES II Ho1: There is no significant relationship between proper inventory policies and productivity in Nigerian companies.
1.6 SCOPE OF THE STUDY This research work is based on the impact of effective inventory management in Nigerian companies. It includes a general review of the practice of inventory management in Life flower mills, Sapele and Beta glass plc, Ughelli, both in Delta State. It has equally look at the level of sales and production cost. However, the nature, type and various factors, which influenced the size of inventories, were researched. Data and information will be gathered through questionnaires from the selected companies and will be used as fact for data presentation.
1.7 SIGNIFICANCE OF THE STUDY