Introduction

In a world of intense competition fueled by globalization, increasing consumer awareness, and

technological improvement, organizations that are keen towards large scale success must at all
times hype its service availability as consumers can very easily divert their patronages elsewhere.
Consequently, managing inventory efficiently has become an important operational weapon for
products and service firms wishing to survive the competitive pressures.
Either inventories represent those items that are accumulated for sale or they are in the process of
manufacturing or in the form of materials, which are yet to be utilized.

.4 GAP IN LITERATURE

In the past, inventory control management was not seen to be necessary. In fact excess
inventories were considered as indication of wealth. Management by then considered over
stocking beneficial. But, today firms have started to embrace effective inventory management
due to its strategic role. Inventory constitutes the major part of a Nigeria manufacturing firm’s
current assets due to the big size of inventories kept by firm’s most part of an organization’s fund
is being invested into it. The objectives of most business include survival and growth, fulfillment
of social responsibilities and realization of satisfactory profit. This level of returns enables one
company to take advantage of business opportunities, undertake research and inventions which
further makes for growth and survival on the long run; discharge its social responsibilities and its
obligations to the owners. In order to maintain this status quo, it become important that positive
effort be made to reduce operational costs of the business, increase production and boost the
sales of their products. Efficient inventory control and cost management is vital for the
successful functioning of manufacturing and retailing organizations. Inventory Management is a
system used in a firm to control the firm's investment in stock. This includes; the recording and
monitoring of stock levels, forecasting future demands and deciding when and how many to
order.

Inventory management is the method of ensuring that the right quantity and quality of the
relevant stock is available at the right time and at the right place. Thus, the gap that this current
study will fill is to provide information for managers of manufacturing companies as it will help
them to set trade-off balance between inventory management and liquidity position of their
firms, in order to know that at what extend they manage their inventories will affect their
liquidity.

Nevertheless, the literature reviewed showed that not much research work has been conducted to
determine the extent of the inventory management and control in manufacturing firms in the light
of profit maximization in Nigeria manufacturing industry. This shows a gap in literature hence,
justifying the conduct of this study.

5.2 Conclusion
Inventory Management is very vital to the success and growth of manufacturing firms. The entire
profitability of manufacturing firms is tied to the volume of products sold which has a direct
relationship with the quality of the product. Management does a lot to present a good
organization to the public in terms of quality production. Good inventory management in any
manufacturing organization saves the organization from poor quality production, disappointment
of seasoned customers, loss of profit and good social responsibility. This is done by ensuring
timely delivery of raw materials to the factory and distribution of finished goods, in order of
production to the warehouse.

Thus, if inventory management is not adequately maintained, production cannot meet the
aspirations of customers which are loss of revenue to the organization. Right from procurement
to the time of processing, quality of raw material is the chief determinant of the productive
efficiency of any manufacturing concern. This varies from organization to organization. This
study concludes that the various tools and techniques of inventory management adopted in
manufacturing firms are effective and inventory management has significant impact on
manufacturing company.

Based on the study, it is concluded that a significant relationship exists between inventory
management practices and organizational performance among flour milling manufacturing
companies. In addition, the study has shown that prevalent inventory management practices
among the surveyed firms: ABC inventory model, Use of scientific inventory management
approach, Continuous replenishment, Economic Order Quantity and Economic Batch Quantity.
On the other hand, the least practiced inventory management techniques were: Vendor managed
inventory, Just- in –Time Demand Forecast approach, and computerized inventory management.
They noted that appropriate database was a prerequisite for the application of the techniques.
This implies that manufacturing entities need to have a well identifiable database.

Inventory Management is very vital to the success and growth of manufacturing firms. The entire
profitability of manufacturing firms is tied to the volume of products sold which has a direct
relationship with the quality of the product. Management does a lot to present a good
organization to the public in terms of quality production.

The purpose of this paper is to review the article and submit the critics by examining the body of
the paper. Based on this fact, the paper has important research contents such as methodology,
procedure, results and discussion. According to the result of this finding, the focus of this
research study was to examine the inventory management practices of flour milling
manufacturing companies and to examine the effects of the identified inventory management
practices on operational performance.

5.5 Suggestion(s) for Further Studies

The study established the fact that inventory management and control is essential for smooth
and effective running of manufacturing firms in Nigeria. The implication is that it is a vital tool
in improving asset productivity and inventory turns, targeting customers and positioning
products in diverse markets, enhancing intra and inter-organizational networks, enriching
technological capabilities to produce quality products thereby imparting effectiveness in inter-
firm relationships. Proper inventory management even results in enhancing competitive ability
and market share of small manufacturing units. It is based on this that this study suggest that
other research should take up the responsibility to broaden the scope of this study by looking at
the effect of inventory valuation management on manufacturing firm performance which this
study is limited to as the findings in this study might not be generalized to other firms. Other
sub variables such as risk management, tax written off and cost of borrowing (Inventory
valuation management) and profitability, productivity and sales (firm performance).