Abstract:
The study of inventory management, as it is practiced in Nigerian manufacturing firms
is a pioneer work. This research project examines the existing practice as regards the
ordering of raw materials their conversion to finished goods through the production
process and the disposition of the finished goods. A lot of aquestions, usually asked by
inventory/material managers were received and plausible solutions suggested. The
study also aimed at determining to what extent the level of raw material purchase was
related to the level of production, sales as well as turnover in the Nigerian Cement
Company, Nkalagu. This research project, which followed the scientific pattern of problems solving is divided into five chapters. In the introductory chapter, certain questions and problems
usually asked and faced by inventory managers were identified. Hypothesis were
formulated as guides to finding solutions to these problems. Related literatures were reviewed. Literature abounds in the area of inventory management though most of them treated "Classical cases". Sources of literature include textbooks, journals, especially those of the Harvard School of Business and past research projects. Under the methodology and the research design, five (5) companies were selected though only one: the Nigerian Cement Company, Nkalagu was used for the analysis. The rest were used as dummies just to arrive at general conclusion. Questionnaires
were designed and used to collect information. Three hundred and fifty (350) were administered primarily to answer those research questions and hypothesis already raised at the introductory chapter. Mathematical and statistical tools were used to analyze the data got from those
questionnaires. Based on this analysis, the following findings were made: The Economic lot size of the Nigerian Cement Company, Nkalagu should be 1,000 tons, instead of the present 13,000 tonnes.
That the company, is possibly currently losing N1,733.520.00 (One MillionSeven Hundred and Twenty Naira) annually for not buying at the Economic order quantity.That a significant relationship exists between the inventory level and turnover at the Nigerian Cement Company, Nkalagu. That inadequate stock leads to production stoppages and loss of sales. Finally •that most inventory managers are aware of the existence of the Economic order quantity but use it with various modifications. Based on the findings, the following recommendations were made: a. That the company should endeavor to keep adequate record as a means of control. b. That materials/inventory managers should take the same entrepreneurial
approach that most other company executives do. C. Further research in this area is equally recommended for research students and companies.
