Impact of Inventory Control Management Practices on Organizational Performance in Nigerian Manufacturing Companies
DOI:
https://doi.org/10.52962/ipjaf.2024.8.2.155Keywords:
Inventory control management, organizational performance, manufacturing sector, cost reduction, operational efficiencyAbstract
This study uses Askar Paints Nigeria Limited as a case study to investigate how inventory control management practices in Nigeria's manufacturing sector contribute to organizational performance. The specific objectives include assessing the extent of inventory control practices utilized by the company and evaluating their impact on operational performance. A descriptive research design was employed to analyze the relationship between business performance and inventory control management. Sixty (60) employees were purposefully selected as the sample size through a pilot study. These staff members provided data through self-administered structured questionnaires, which were analyzed using percentages and frequency tables. Additionally, the study examined risk indicators related to the company's production operations. The findings indicate that effective inventory control management significantly enhances operational performance. It has reduced costs, increasing profitability as the company's customer base grows. However, the business performance reflects insignificant risk, primarily because the production process follows a "make to stock" model rather than a "make to order" approach. While make-to-stock production offers the advantage of shortened lead times, it also poses challenges, such as the risk of goods being damaged during storage when demand forecasts fail. The study recommends that all inventory staff receive regular training, the implementation of an electronic inventory management system, and improvements in inventory planning and management.
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