INVENTORY CONTROL SYSTEM AND PERFORMANCE OF CONSUMER GOODS MANUFACTURING FIRMS IN NIGERIA
DOI:
https://doi.org/10.67199/tr5z6d81Keywords:
Raw material, Raw material inventory control, Work-in-progress inventory control, Finished goods inventory, control and PerformanceAbstract
Inventory management is very pivotal for the effective management of inventory system for meeting the target profit margin of firms. The study investigated the effect of inventory control system on performance of consumer goods firms in Nigeria. The study used expo-facto research design. Sixteen quoted consumer goods firms in the Nigerian Exchange Market for the period 2018 to 2024 formed the sample size and the data was analysed using robust least square regression technique. The empirical findings revealed that raw material inventory control has an insignificant negative impact on performance of consumer goods firm, work-in-progress inventory control has a significant negative impact on performance of consumer goods firm and finished goods inventory control has an insignificant positive impact on performance of consumer goods firm. The study concludes that, for the purpose of driving the performance of consumer goods firms in Nigeria overtime, Management should ensure that there is no delay of raw material arrival in order to enhance their performance. The study recommended that management of firms should ensure that work-in-progress inventory is kept at a minimum level in order to cushion the adverse effect on performance among others.
Keywords: Raw material, Raw material inventory control, Work-in-progress inventory control, Finished goods inventory, control and Performance.
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