EFFECT OF INVENTORY CONTROL SYSTEM ON MANUFACTURING ORGANIZATION IN NIGERIA

Abstract

This study investigate the relationship between effective system of inventory management and organization performance in West African Fertilizer Company Okpella. Edo State. The specific objectives of the study is to examine the available inventory in the company with view to determining their effectiveness and efficiencies, examine the problems encountered in the inventory control in the company and to access means of achieving more control of inventories and suggest solution to some of the problems.. A total of fifty-five respondents constitute the sample for the study. Four research questions and Four hypotheses were generated and tested at 10% (that is 0.10) significant level using descriptive statistics and non-parametric test. The result of the analysis showed that flexibility in inventory control management is an important approach to achieving organizational performance. It was found that organizations benefit from inventory control management by way of easy storage and retrieval of material, improved sales effectiveness and reduced operational cost. The study also found that there is a relationship between operational feasibility, utility of inventory control management in the customer related issues of the organization and cost effectiveness technique are implemented to enhance the return on investment in the organization. Effective inventory control management is recognized as one of the areas management of any organization should acquire capability. It is recommended that organizations should adopt the inventory keeping method that best suit their operations.