The Impact Of Inventory Management Model techniques On Profitability Of Manufacturing Companies In Nigeria
ABSTRACT
The main objective of our study was to determine the impact of inventory management model techniques on firm performance in Nigeria- Using Grass Roots Opinion. The methodology applied grass roots opinion (primary questionnaire) survey design with a focus on a purposefully sampled 10 firms with populations of 710 staff strength; while Taro Yamane formulae was used to arrive at 400 staff who formed our respondents. The method of analyses applied descriptive statistics; Pearson Correlation and OLS regression. The result showed that the Adjusted R squared value of 0.879, which is 88% of the systematic variations in the dependent variable in the pooled firms, was jointly explained by the independent variables (ABC, LMH, and EOQ) on firm stock management. The F-statistic value of 429.250 with P-value of 0.0000 showed that the OLS pooled model on the overall is statistically significant @ 5% level. Other findings of the explanatory variables are: ABC; LMH; and EOQ inventory models have positive significant impact on firm performance in Nigeria. The study concluded that inventory management model techniques tested have positive significant impact on firm performance. The study therefore recommended that top management should emphasis on the proper inventory management techniques and measuring of efficiency deviations to identify weaknesses in the process of managing inventories.