Inventory Management And Profitability In New Vision Printing And Publishing Company

Abstract

Good managers carefully control inventory because it may represent a large part

of the assets of the business.

So effective inventory management system is important for business organization

in their growth and survival, in manufacturing business where there are three

major types of inventories: -

Raw materials, goods in process of manufacture, and finished goods, all three

classes of inventory are included in the current asset section of the balance

sheet.

Therefore if the costs are not controlled through proper inventory management

systems the costs of production will go higher leading to low profits.

The study was aimed at;

" Establishing the relationship between inventory management systems and

profitability of the company.

• Establishing the inventory management systems in the company.

• Establishing inventory control in the company.

The study examined inventory management using a sample of 28

respondents using the questionnaire method of data collection and results

revealed that the inventory management system itself was not effective in the

company hence total cost of production leading to low profits of the company.

It was concluded that inventory management in the company need

improvement in areas noted, like storage, and recommendations included

computerization of the stores, segregation of duties, perpetual stock taking and training of staff.

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