The Effect of Inventory Management on the Performance of Manufacturing Firms in Nigeria

Research study thoroughly examined Effect of Inventory Management on the Performance of Manufacturing Firms in Nigeria, a research of some selected quoted manufacturing firms, where inventory management were captured by inventory turnover, inventory conversion period and manufacturing firm size and return on asset was used in measuring performance. Study reveal the existence of a relationship between inventory management and performance of selected quoted manufacturing firms in Nigeria. In conclusion, it can be asserted from the result that inventory management is an engine device that drive the performance of manufacturing firms in Nigeria. Inventory turnover and manufacturing firm size positively influence the performance of manufacturing firms. Also, increase in inventory turnover and firm size affects and enhances performance of manufacturing firms in Nigeria. This study recommends that management of the manufacturing firms should embrace effective inventory management practices such as inventory turnover and inventory conversion period, which can improve performance. In addition, management of the firms must develop a working strategic policies and guidelines principle on inventory management to control the staff and endeavor that optimal inventory levels are held, by this costs will be minimize and performance maximize.