The Effects of Inventory Management and Control Systems in the Financial Performance of a Manufacturing Company (A Case Study of Dangote Cement Plc)

Abstract

This research investigates the effects of inventory management and control systems on the financial performance of manufacturing companies, using Dangote Cement PLC as a case study. In today’s highly competitive business environment, efficient inventory management has become crucial for enhancing organizational profitability and sustainability. The study examines how inventory management impacts financial performance indicators such as return on assets (ROA), profitability, and productivity. Through empirical analysis of secondary data from Dangote Cement’s annual reports (2015–2022), the study applies multiple regression models to evaluate the relationship between inventory turnover, holding costs, actual inventory levels, and transportation costs with financial outcomes. The findings reveal that inventory control significantly influences financial performance, highlighting the importance of effective inventory policies and technologies in maintaining competitive advantage. The study recommends that manufacturing firms, especially in developing economies like Nigeria, adopt integrated and automated inventory systems to minimize costs, reduce inefficiencies, and improve profitability.

Table of Contents

1. Chapter One: Introduction

1.1 Background to the Study

1.2 Statement of the Problem

1.3 Aim and Objectives of the Study

1.4 Research Questions

1.5 Research Hypotheses

1.6 Significance of the Study

1.7 Scope and Limitations of the Study

1.8 Definition of Terms

2. Chapter Two: Literature Review

2.1 Conceptual Review

2.2 Theoretical Framework

2.3 Empirical Review

2.4 Gaps in Literature

2.5 Conceptual Framework

3. Chapter Three: Methodology

3.1 Research Design

3.2 Population of the Study

3.3 Sample and Sampling Technique

3.4 Data Collection

3.5 Statistical Tools and Analytical Procedure

3.6 Model Specification

3.7 Measurement of Variables

3.8 Limitation of the Methodology

4. Chapter Four: Data Presentation and Analysis

4.1 Descriptive Analysis of Variables

4.2 Correlation Matrix

4.3 Heteroskedasticity Test

4.4 Test of Hypotheses

4.5 Discussion of Findings

5. Chapter Five: Summary, Conclusion and Recommendations

5.1 Summary

5.2 Conclusion

5.3 Recommendations

6. Appendix