Influence of Inventory Management on Performance of Coca-Cola Bottling Company, Ibadan Plant, Nigeria

Abstract

Some captains of industries are of the opinion that inventory management is just a routine function in an organization. Arising from this backdrop, this study aims at beaming its searchlight to inventory management as it affects the performance of Coca-Cola Bottling Company, Ibadan plant, Nigeria. A total of eighty-three respondent constitute the sample for the study. Four research questions and four hypotheses were generated and tested at 5% (that is 0.05) significant level using descriptive statistics and non-parametric test (chi-square that is, x²). The result of the analysis showed that flexibility in inventory control management is an important approach to achieving organizational performance. It was found that organizations benefit from inventory control management by way of easy storage and retrieval of material, improved sales effectiveness and reduced operational cost. The study also found that there is a relationship between operational feasibility, utility of inventory control management in the customer related issues of the organization and cost effectiveness technique are implemented to enhance the return on investment in the organization. Effective inventory control management is recognized as one of the areas management of any organization should acquire capability. It is recommended that organizations should adopt the inventory keeping method that best suit their operations.