Society of African Journal Editors

Kogi Journal of Management

IMPACT OF INVENTORY CONTROL MANAGEMENT ON ORGANIZATIONALPRODUCTIVITY (A STUDY OF RISONPALM COMPANY LTD., RIVERS STATE)

Authors: Godday Raymond Luke

Journal: Kogi Journal of Management

The study sought to achieve the following objective: 1: To determine the significant impact of inventory management on organizational productivity, 2: To assess significant impact of the first-in-first-out of stock control method on the product output of Risonpalm. 3: To ascertain the significant effects of last-in-first-out stock control method on the market share of Risonpalm. 4: To evaluate the significant influence of weighted average cost of inventory management on the turnover of Risonpalm. 5: To determine the significant effect of re-order level inventory control method on the demand for Risonpalm Company Limited. The research questions and hypothesis study were formulated from these objectives. The study adopted a descriptive survey research design. Data was collected from both primary and secondary sources. The population of this study was 600. This population is finite because the staff of Risonpalm Company is known. The sample size is 230, determined with Taro Yamen formula which was considered appropriate for finite population. The stratified sampling technique was adopted. Questionnaire was the major research instrument used for data collection. The reliability of the study instrument was calculated with test and retest variables. The hypotheses were tested using chi-square statistical tools at 5% level of significance. At the end of the study, the following findings were made: 1: Inventory management had significant impact on organizational productivity. 2: First-in-first-out stock control method has significant impact on the product output of Risonpalm Company. 3: Lost-in-first-out stock control method has significant effects on the market share of Risonpalm Company. 4: Weighted average stock control method does not have `significant influence on the turnover of Risonpalm Company. 5: Re-order level inventory control method has significant effects on the demand for Risonpalm Company Limited River State. The study recommends that Inventory management should become more effective and properly monitored from source; since most of the raw materials for production are locally sourced. In addition with the second hypothesis which states that First-in-first-out stock control method had significant impact on the product output of Risonpalm Company Limited. This point could further be explained by the fact that the process of production largely depends on the input in determining quality. When the input are bad or poor, no matter how good the process that conveys the work-in-progress is, the product quality will still be at the same level as the material inputted.