INVENTORY MANAGEMENT AND ORGANIZATIONAL EFFICIENCY (A CASE STUDY OF NIGERIA BOTTLING COMPANY PLC, BENIN CITY)

ABSTRACT

This research work on inventory management and organizational efficiency with particular reference to Nigerian Bottling Company Plc, Benin City” is focused on how inventory in a manufacturing company can be properly managed to reduce cost associated with production so as to maximize productivity, which is one of the primary goals of any manufacturing company. The role of inventory in a manufacturing company can not be overemphasized as it constitutes over 70% cost of production, hence production output is a function of how inventory can be effectively and efficiently managed. In order to achieve the objectives of the study, a well structured questionnaire was used to collect data from respondents. And the data collected was analyzed using chi-square (X²) method. The study revealed that there is a positive relationship between cost minimization and profit maximization. It was also discovered that productivity is largely dependent on the level of stock maintained. Finally, it revealed that inventory constitutes about 70% cost of production and when effectively and efficiently managed with proper planning and control, the level of productivity is bound to increase. Therefore, it was recommended amongst others that management should ensure effective and efficient management of inventory in order to obtain maximum profit for the organization.