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
For the full publication, please contact the author directly at: okebaatimotobilola@gmail.com
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Institutions
- Covenant University, Canaan Land, Ota, Ogun State 4
- Crawford University of Apostolic Faith Mission Faith City, Igbesa, Ogun State 2
- Crescent University, Abeokuta, Ogun State 1
- Cross Rivers University of Technology, Calabar, Cross Rivers State 144
- Delta State Polytechnic, Ogwashi-Uku, Delta State 14
- Delta State Polytechnic, Otefe, Delta State 13
- Delta State University, Abraka, Delta State 142
- Ebonyi State University, Abakaliki, Ebonyi State 18
- Edo University, Iyamho, Edo State 11
- Ekiti State University 61