An Empirical Review of Inventory Management and Control System in International Breweries Plc
- December 12, 2019
- Posted by: RSIS
- Categories: Accounting, IJRSI, Social Science
International Journal of Research and Scientific Innovation (IJRSI) | Volume VI, Issue XI, November 2019 | ISSN 2321–2705
An Empirical Review of Inventory Management and Control System in International Breweries Plc
Adebola Daniel Kolawole
Department of Accounting, Afe Babalola University, Ado – Ekiti, Ekiti State, Nigeria
Abstract: – This study evaluated the inventory management and control system in International Breweries Plc using a survey research design. The study highlighted the adequacy and effectiveness of the company’s inventory management and control system. Primary data were sourced through administered questionnaire. The result generated from the study showed that the company operates an effective, efficient, adequate and properly implemented inventory management and control system as responses were in 100% affirmative of that. The study thus concluded that efficient inventory management and adequate accounting practice employed for recording inventories by International Breweries Plc, contribute significantly towards ensuring reduction in ordering and carrying cost of inventory. The appropriateness of inventory valuation employed by the company was evaluated.
Keywords: Inventory Management, Control, International Breweries Plc
I. INTRODUCTION
Business organizations in emerging economies like Nigeria require proper inventory management and control techniques to be put in place. Inventory management is the economics of stockholding (Adeyemi & Salami, 2010). Investment in inventories is one major component of cost in many manufacturing organizations which should be managed efficiently to ensure profitability. Good inventory management system will advise company management on lowest possible total cost of maintaining and handling of inventories. Bad inventory decisions can however, reduce an organization’s profitability, whittle away at its market share, and generally wreak havoc on its supply chain. The goal of inventory management is to have goods in stock when you need them. Morris (1995) posit that inventory management in its broadest perspective is to keep the most economical amount of one kind of asset in order to facilitate an increase in the total value of all assets of the organization – human and material resources. It is therefore, imperative to manage inventories efficiently and effectively in order to avoid and prevent wastage of investment.
