Impact of Inventory Control on the Performance of a Manufacturing Company (PDF)

Filed in Articles by on July 26, 2022

 – Impact of Inventory Control on the Performance of a Manufacturing Company –

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The purpose of this study is to establish the relationship between inventory control and is impact on the performance of manufacturing company in Akwa Ibom Sate basing of the following objectives; To determine the impact of inventory control on the performance of a manufacturing company in Akwa Ibom State.

To identity the degree to which poor inventory model used by the company has resulted to low productivity in the company to ascertain whether the company has suffered unfavorable impact from management and control of inventories , and to carry out the relationship between approaches of inventory control and financial performance of peacock paint.

The descriptive aspect of the research design was used in company performance establishing the performance and the analytical research design was used to establish relationship between inventory and performance.

The sample size of 30 was determine using Chi-square formula .data was both primary and secondary.

Primary data was collected by the use of questionnaire and secondary data was collected from report, journals and internet. Frequency table and graphs were worked out basing on the data entered into excel.

In this frequency tables and graphs, analysis was done with a corresponding percentage, however, statistical package for social science (SPSS) were used determine relationship between two variables.

Findings revealed that goods are not inspected on receipt, staff of peacock paint do not maximize attention to those inventories whose value is highest, all store staff of peacock paint are not highly skilled, it experiences under stocks situations, and get damaged goods from its stored.

Besides that peacock paint is faced with cost of checking on order and maintaining records of the entire process, handling cost. Nevertheless, there is a strong positive relationship between approaches relationship between approaches of inventory control and financial at Chi-square.

It was recommend that peacock paint should forecast market for its product so that it stock enough inventories to avoid under stocks and reduce on damage inventories.


Inventory is one of the resources that are managed by business organizations and it was first recorded in 1601. The need for inventory control cannot be overemphasized as it is a means for improving the performance of manufacturing companies.

Inventory can be defined as a record of a business current assets including property owned, merchandise on hand and the value of work in progress and work complete but not sold and it is classified as a current asset because it can be turned into liquid cash within a short period of time.

Inventory has created a great impact on the profitability of the manufacturing firm which resulted to the deep research of this topic. “Impact of Inventory Control on the Performance of Manufacturing Companies in Akwa Ibom State”.

Inventory plays a major role in the operation of many businesses and manufacturing companies. In manufacturing, inventories of raw materials allow companies to operate independently of their sources of supplies.

Day to day operation are not dependent on deliveries from supplies since stock of the necessary materials are maintained and used needed.

Without inventory control, millions of naira could be lost yearly because of non accountability of stocks and inaccurate checks and balances.

The process of control and management of inventory is a very important factor in the success or failure of any business for example; little stock will result in stock out which will disrupt the production distribution cycle that is crucial to the survival of all manufacturing companies while too much stock will tie down the resources of a company.

Poor or inadequate inventory management can present a serious challenge to the productive capacity of a manufacturing organization.

In addition to raw materials and finished goods, many companies also maintain items of assets, property, inventories of work in progress, office supplies, business firms and general operation supplies.


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