Inventory Management and Operational Performance of Manufacturing Firms in South-East Nigeria (original) (raw)
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Inventory Management Practices and Operational Performance of Manufacturing Firms in Ghana
Advances in Research, 2020
Aims: The study examined the effect of different inventory management practices on the operational performance of manufacturing firms in Ghana. Study Design: The study adopted the descriptive survey design. Place and Duration of Study: The study was conducted among manufacturing firms within the Accra, Tema and Kumasi metropolises in Ghana between November 2019 and February 2020. Methodology: The study randomly sampled 152 Procurement and Operations managers and officers from 246 registered manufacturing firms with the Association of Ghana Industries. The manufacturing firms are specifically located within the Accra, Tema and Kumasi metropolises. The study gathered primary data using structured questionnaires of which analysis was done using both descriptive and inferential statistical tools including mean, standard deviation and ordinary least square regression. Results: Using 114 valid responses, the study found manufacturing firms in Ghana to have high preference for Strategic Su...
Iconic Research And Engineering Journals, 2018
Inventory management has been a problem to many business organizations in Nigeria. Hence, it has become imperative to identify and enlighten management on the proper use of inventories. How inventory management systems affects operational performance in manufacturing firms is the primarily concern of this study. To further investigate the study and accurately analyze the result, three hypotheses were formulated. A descriptive research design random sampling techniques were employed where the sample size comprised of a total of sixty (60) staff were randomly selected from May and Baker Manufacturing Nigeria Limited in Lagos State. A non-parametric statistics of chi-square was employed to test for the relevant hypotheses. The outcome of this study reveals that, there is significance relationship between poor inventory management system and organizational performance. This study conclude that, failure to maintain a proper, adequate and accurate inventory control management will results in fall in profit and performance of May and Baker Nigeria Limited and vice-versa. It was recommended that, the organization should avoid the dangers that are inherent in keeping too little or too much of stock. There is also the need for organizations to train their personnel in the area of inventory control management. In general, the findings that emerged from this study have indicated that organizations stand to gain a lot from effective inventory control management system. Some of this benefit include optimal use of resources, cost reduction, improved profitability, reduction of waste, transparency and accountability, easy storage and retrieval of stock amongst others.
Inventory Management and the Performance of Listed Manufacturing Firms in Ghana
Open Journal of Business and Management
The purpose of this research was to investigate how inventory management affected the performance of manufacturing enterprises in the Kumasi Metropolis. In addition, the research used both descriptive as well as explanatory research approaches. The research demographic included all of the manufacturing companies in Ghana's Kumasi Metropolis, and the target demographic included all of the staff members who work in essential departments of the manufacturing businesses sited throughout the Assembly. The total population is 62. The sample size was determined using the Yamane sample size determination formula in the study. Because the population and location of manufacturing companies were available, probability sampling was utilized in this investigation, with a sample size of 54. According to the research, a one-unit gain in inventory management leads to a 20.3 percent, 31.9 percent, and 21 percent rise in marketplace efficiency, financial results, as well as client satisfaction, respectively. Ultimately, the research shows that stock management is a factor in the success of manufacturing companies. As a result, it is advised that optimum stock management methods be implemented in order to improve the operation of industrial enterprises in Ghana's Kumasi Metropolis.
Inventory Management and Financial Performance of Listed Industrial Goods Companies in Nigeria
Journal of Accounting and Financial Management , 2023
The study sought to determine the relationship between inventory management and financial performance of listed industrial goods companies in Nigeria. The predictor variable proxies used include inventory turnover and inventory conversion period while the referents for the criterion variables used for the study were net profit margin and return on assets. The study adopted the use of an ex-post facto research design. Secondary data were used in the study, which was collected from ten listed industrial goods companies in Nigeria for the 2018 to 2020 financial year. The statistical tools used for the study were descriptive statistics, regression analysis and Pearson's product-moment correlation coefficient. The result of the finding shows that there is a significant positive relation between inventory turnover, inventory conversion period and net profit margin as well as return on assets of listed industrial goods companies in Nigeria. The study, therefore, concluded a significant relationship between inventory management and financial performance of listed industrial goods companies in Nigeria. The study recommended that the management of listed industrial goods companies should monitor inventory to ensure that optimum levels are maintained at all times to improve performance.
Several penalties could be apportioned to excesses in either direction. Inventory management has been a problem to many business organizations in Nigeria. Hence, it has become imperative to identify and enlighten management on the proper use of inventories. How inventory management systems affects operational performance in manufacturing firms is the primarily concerned of this study. To further investigate the study and accurately analyse the result three hypotheses were formulated: the relationship between poor inventory management system and organizational performance, incapability of organizational policy and inventory management system as well as the relationship between inventory management system and profitability in manufacturing industries. A descriptive research design random sampling techniques were employed where the sample size comprised of a total of sixty (60) staff were randomly selected from May and Baker Manufacturing Nigeria Limited in Lagos State. A non-parametric statistics of chi-square was employed to test for the relevant hypotheses. The outcome of this study reveals that, there is significance relationship between poor inventory management system and organizational performance. It was also reveals that the incapability of organizational policy negatively impacts inventory management system and finally, the outcome of this study also gathered that, there is a positive and direct relationship between inventory management system and profitability in May and Baker Nigeria Limited. This study conclude that, failure to maintain a proper, adequate and accurate inventory control management will results in fall in profit and performance of May and Baker Nigeria Limited and vice-versa. It was recommended that, the organization should avoid the dangers that are inherent in keeping too little or too much of stock. There is also the need for organizations to train their personnel in the area of inventory control management. In general, the findings that emerged from this study have indicated that organizations stand to gain a lot from effective inventory control management system. Some of this benefit include optimal use of resources, cost reduction, improved profitability, reduction of waste, transparency and accountability, easy storage and retrieval of stock amongst others.
This study looked at the relationship between inventory management and financial performance. The population of the study comprises all conglomerate quoted company in the Nigerian stock exchange market as at 31 st December 2010. The scope of the study covered the period from 2010 to 2014. Descriptive, Pearson correlation and multiple regressions are used to analyze the data. It was found that inventory management is significantly related to the profitability of a company. This entails that; an efficient management of inventory cycle will enhance the profitability of a company. Also, lack of proper management of it will hinder the financial performance of the organizations. Based on the result, it was recommended that Conglomerate Company should try to see that inventories are kept to the minimum, as well as make sure that proper checks are kept to make sure only needed inventories are in the store and also to keep track of the movement of goods, in order to avoid necessary delay of finished and WIP goods in the store and warehouse.
Journal of Global Social Sciences
The study looked at the optimization of profit through inventory control practices of firms in our ever-competitive environment. Four inventory control practices formed the objectives with two hypotheses raised to guide the study. The study was empirically analysed. The findings revealed a positive significant relationship between the objectives, Just–In–Time, Material Requirement Planning (MRP), Economic Order Quantity and safety stock on profit maximization. The study recommended that an Effective (well-functioning) inventory control system ensures there is a balance between having just enough materials or products in the stores/warehouse and keeping the stock cost under control so that the firm can maximize its profits at all times.
International Journal of Accounting Research
In this study, the research team studied the role of inventory management on the financial performance in some selected manufacturing companies in Mogadishu with the major objective of the study is to determine the inventory management practices used in manufacturing firms and to investigate the relationship between inventory management and financial performance in manufacturing firms. The research team selected 72 respondents with the use of questionnaire as instrument and data was analyzed using both descriptive and correlation statistics of mean and frequency (percentage) for SPSS. After gathering and analyzing data, the study found that there is significant positive relationship between the inventory management and financial performance where r=0.683.
The manufacturing sector plays an important role in the Ghanaian economy, therefore, this study deems it necessary to investigate the impact of efficient inventory management on the profitability of manufacturing firms in Ghana. The study design was cross sectional. The study employed the use of secondary data. Cross sectional data from 2004 to 2014 was gathered for the analysis from the annual reports of four manufacturing companies listed on the Ghana Stock Exchange. Judgmental sampling was used to select the four companies and only manufacturing companies listed on the Ghana Stock Exchange (GSE) whose data was up to date were considered. Measures of profitability were examined and related to proxies for efficient inventory management by manufacturers. The Ordinary Least Squares (OLS) stated in the form of a multiple regression model was used in the data analysis. The study revealed that there is a significantly strong correlation between the main variable, raw materials inventory management and profitability of manufacturing firms in Ghana and it is positive. Therefore, efficient management of raw material inventory is a major factor to be considered by Ghanaian manufacturers in enhancing or boosting their profitability. This study is only based on manufacturing companies and listed on the Ghana Stock Exchange so it may reflect some partial.
Food and beverage manufacturing companies faced several challenges with regards to their daily operations. These challenges have continued to affect their performance in the form of low product quality, decline in sales, excessive inventory and low product turnover. Key challenge to the companies is poor inventory management and implementation. Inventory management is the backbone of many manufacturing companies around the world which when properly managed contributes immensely in improving firm performance. The food and beverage manufacturing companies in Nigeria however faces issue with regards to poor management and control of materials within the sector which contributes to its low performance. This studytherefore examines the effect of inventory management on profitability of food and beverage manufacturing companies in Lagos State, Nigeria. A cross sectional survey research design was adopted. The target population comprised of 2027 top, middle and lower level managers within the selected food and beverage companies in Lagos State, Nigeria. Stratified random sampling technique was used for the study. A validated questionnaire was used. Cronbach's alpha coefficients for the constructs ranged from 0.702 to 0.955. Data was analysed using descriptive and inferential statistics.The findings revealed that inventory management had significant effect on profitability of selected food and beverage manufacturing companies in Lagos State, Nigeria (Adj. R 2 = 0.538, F (4, 351) = 104.185, p < 0.05). The study concluded that inventory management affects profitability of selected food and beverage manufacturing companies in Lagos State, Nigeria. The study thus recommended that proper inventory management techniques should be put in place by the companies in order to avoid delays, wastage and increase the overall profitability.