Optimizing profit maximization through effective inventory control practice of manufacturing firms in Nigeria

Abstract

The study looked at the optimization of profit through inventory control practices of firms in our ever-competitive environment. Four inventory control practices formed the objectives with two hypotheses raised to guide the study. The study was empirically analysed. The findings revealed a positive significant relationship between the objectives, Just–In–Time, Material Requirement Planning (MRP), Economic Order Quantity and safety stock on profit maximization. The study recommended that an Effective (well-functioning) inventory control system ensures there is a balance between having just enough materials or products in the stores/warehouse and keeping the stock cost under control so that the firm can maximize its profits at all times.