Impact of Inventory Management Control on Profitability in Manufacturing Industry

Student: Tobiloba Pelumi Okebaatimo (Project, 2025)
Department of Accountancy
Lens Polytechnic, offa, Kwara State.

Abstract

Abstract

This study investigates the impact of inventory management control on the profitability of manufacturing firms, using Lens Bakery, Offa, Kwara State as a case study. The research examines how ordering cost, carrying cost, and buffer stock influence the financial performance of manufacturing industries. A survey research design was adopted, and primary data were collected from 80 respondents through structured questionnaires. Data were analyzed using descriptive statistics and Chi-square tests. The findings revealed a significant relationship between ordering cost, carrying cost, and organizational profitability, indicating that effective inventory management contributes to enhanced financial performance and operational efficiency. The study concludes that maintaining an optimal inventory level minimizes costs associated with overstocking and stockouts, thereby improving profitability. It recommends that manufacturing firms should adopt flexible and well-structured inventory systems that ensure timely replenishment of stock, minimize wastage, and promote efficient resource utilization for sustained profitability.

Keywords
inventory profitability manufacturing management impact control firms research ordering carrying
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