Effectiveness Of Inventory Management On Manufacturing Companies In Nigeria (A Case Of Emerald Food And Beverage Company Limited Imo State)

Project and Seminar Material for Business Administration and Management BAM

Effectiveness Of Inventory Management On Manufacturing Companies In Nigeria (A Case Of Emerald Food And Beverage Company Limited Imo State)

Chapter One


1.1 Background Of Study

Inventory management is a significant management challenge for most firms – major companies, medium-sized companies, and small companies. Effective inventory flow management in supply chains is one of the essential determinants of success. The issue with inventory management is the supply of inventory and the demand for inventory.A corporation would ideally want to have enough inventory to satisfy the expectations of its customers- no lost sales owing to inventory stock-outs. On the other hand, the corporation does not want to have too much inventory staying on hand because of the cost of carrying inventory. Enough but not too much is the ultimate objective (Coyle, Bardi, and Langley, 2003). (Coyle, Bardi, and Langley, 2003). The role of inventory management is to ensure faster inventory turnover. An inventory is one of the resources that is handled by business organizations and it was first noted in 1601. The need for inventory control can not be overemphasized as it is a means of boosting the performance of the industrial industry. Inventory may be defined as a record of a business’s current assets, including property owned, merchandise on hand and the value of work in progress and work completed but not sold, and it is considered a current asset since it can be changed into liquid cash within a short amount of time. Inventory has had a significant impact on the profitability of manufacturing firms, prompting extensive research into the subject. Effectiveness of inventory management in a manufacturing organization. Inventory plays a vital part in the running of many businesses and manufacturing companies. In manufacturing, inventories of raw materials allow enterprises to function independently of their sources of supplies. Day-to-day operations are not dependent on supply deliveries because the necessary materials are kept on hand and used as needed. Without inventory control, millions of naira could be lost every year due to non-accountability of inventories and faulty 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 which will disrupt the production distribution that is crucial to the survival of all manufacturing companies, while too much stock will tie down the resources of a company. Poor or insufficient inventory management can be a significant impediment to a manufacturing firm’s productivity. In addition to raw materials and finished goods, many organizations also store items like assets, property, inventories of work in progress, office supplies, business firms and general operation supplies. There is an ideal amount of inventory; therefore, insufficient inventory causes sales losses and disrupts the production process, whereas an excessive stock level leads to unnecessary carrying costs and obsolescence or rotting hazards. The ideal inventory, according to Charles T. Horngren (2007), is between inadequate stocks and excessive inventories. Inventory management focuses on maintaining an ideal inventory level that will be carried at the least cost.

1.2 Statement Of Problem

Inventory is a vital portion of current assets, particularly in manufacturing businesses. Huge funds are invested in inventories to assure a seamless flow of manufacturing and to meet customer demand. However, managing inventory also involves holding or carrying expenses along with opportunity costs. Inventory management, therefore, plays a critical role in balancing the benefits and disadvantages involved with maintaining inventory. Efficient and effective inventory management is critical to the successful operation and survival of a business. When businesses fail to manage their inventory correctly, they are guaranteed to experience stock shortages, decreased profitability, and customer dissatisfaction.

1.3 Objective Of Study

The following are primary objective of this study:

  1. To determine to what extent the inadequate management of inventory in Emerald food and beverages has produced low production for the company.
  2. To analyze the extent to which insufficient inventories of finished goods cause loss of sales to the Emerald food and beverage company.
  3. To identify the degree to which bad inventory technology used by the company has led to low productivity in the company.

1.4 Research Questions

  1. To what extent does poor inventory management in Emerald Food and Beverage result in low production for the company?
  2. To what extent does insufficient inventory of finished goods cause loss of sales for the Emerald food and beverage company?
  3. What degree has bad inventory technology used by the company led to low productivity in the company?

1.5 Significance Of Study

The significance of this work lies in the fact that, with improved inventory control and management in the manufacturing organization, the company may gain from it. It will be critical for manufacturing companies, firms, and businesses because it will allow them to maintain acceptable inventory control and ensure that they do not run out of stock or have excess stock, which could jeopardize their liquidity situation. It will also aid in meeting the needs or desires of consumers. It is also significant for the government as it would help to avoid the waste of investment inventories. It will also allow lecturers to properly know the necessity of inventory control so that they will be able to effect it on their students. This study will also demonstrate the appropriate strategies to be used in preventing mismanagement; it will also improve stock control, which has resulted in material mismanagement and inefficiency.

1.6 Scope Of Study

This study focuses on determining to what extent the inadequate management of inventory produces low production for manufacturing companies. It also seeks to analyze the extent to which insufficient inventories of finished goods cause loss of sales to manufacturing companies. Lastly, the study wants to identify the degree to which bad inventory technology used by manufacturing firms has led to low productivity in the company. This research is limited to the Emerald Food and Beverage Company.

1.7 Limitation Of Study

Availability of materials, finance and time constraints to combine research work and academic work were major challenges the researcher encountered during this research.

1.8 Definition Of Terms


This refers to the goods and materials that a business holds for the ultimate goal of resale, production or utilisation.


This is the administration of an organization, whether it is a business, a non-profit organization, or government body.

Project Material Download

3,000 Naira

The Complete Material Will Be Sent to You in Just 2 Steps

Quick & Simple…

Step One Purchase

Make Payment (Through Transfer) of ₦3,000 to Any of the Account Below

Access Bank PlcAcc No: 0811003731
Samphina Academy
Current Account
Zenith BankAcc No: 1225513212
Samphina Academy
Current Account
PalmPay Main LogoAcc No: 8143831497
Samphina Academy
Digital Account

Or CLICK HERE To Pay With Debit Card

CLICK HERE To Purchase Material ($15)
Make Payment of 80 GHS to 0553978005 | Douglas Osabutey | MTN MoMo

Step Two Purchase

Send the Following Details on WhatsApp ( 08143831497) After Payment

  1. Payment Details

  2. TOPIC: Effectiveness Of Inventory Management On Manufacturing Companies In Nigeria (A Case Of Emerald Food And Beverage Company Limited Imo State)

The Complete Material Will Be Sent To You On WhatsApp After Receiving Your Details
T & C Apply

  Contact Our Help Desk

Need a Different Topic? Perform a Quick Search

List of Related Works

Click on Any Topic to Preview the Content


Samphina Academy

Samphina Academy is an Online Educational Resource Center that is aimed at providing students with quality information and materials to aid them in succeeding in their academic pursuit.