INVENTORY MANAGEMENT: IMPERATIVE FOR ORGANIZATIONAL EFFECTIVENESS IN MANUFACTURING COMPANIES IN DELTA STATE: A CASE STUDY OF BETA GLASS PLC, UGHELLI AND PIKENSO INDUSTRIES, KOKO

Ojuye Thomas & Egberi Onyeyime Edith

Department of Accountancy

Delta State Polytechnic, Ozoro

Email: kelvinegberi76@gmail.com

ABSTRACT

The study has been on inventory management as an imperative for organizational effectiveness in manufacturing companies in Delta State using  Beta Glass Plc, Ughelli and Pikenso Industries, Koko, Delta State as case studies. The main objective of this study is to examine the impact of inventory management on the effectiveness of manufacturing companies in Delta State. Descriptive survey design was employed in carrying out the study. The population of the study is one hundred and twelve (112). A sample size of eighty six (86) was derived using the Krejcie and Morgan (1970) formula for sample size determination from a given population. Data were generated using questionnaire. Data collected were presented in tables and analyzed using descriptive statistics of mean and standard deviation to answer the research questions while Pearson product moment correlation coefficient was used in the hypotheses testing. From the analyses, it was found out that there is significant relationship between good inventory management and organizational effectiveness; inventory management has a significant impact on organizational productivity and there is a high positive correlation between good inventory management and organizational profitability. The study concluded that manufacturing companies in Delta State need to assess their level of inventory control which will serve as a guide to what they need to do in order to outperform their organizational performance by using a proper inventory management practices as a tool and make them closer to achieve business excellence. Against this background the study recommended, among others, that inventory management in manufacturing organization should be well-articulated whereby the management will increase support for training and retraining of staff to improve in inventory management for organizational effectiveness and maintain production consistency for organizational profitability.