Thesis Abstract

Abstract
Inventory management and control play a crucial role in the performance of businesses, including Kingsway Shoes in Owerri. This research project aims to evaluate the impact of inventory management and control on the performance of Kingsway Shoes, a leading shoe retailer in Owerri. The study utilizes a mixed-methods approach, combining both qualitative and quantitative data collection methods to provide a comprehensive analysis. The research begins by conducting a thorough review of relevant literature on inventory management and its impact on business performance. This literature review serves as a foundation for understanding the key variables and relationships that will be explored in the study. The primary data collection involves interviews with key personnel at Kingsway Shoes, including managers and inventory control staff, to gain insights into the current inventory management practices and challenges faced by the company. Quantitative data is collected through surveys distributed to customers to assess their perceptions of product availability and service quality at Kingsway Shoes. The survey responses are analyzed using statistical methods to identify correlations between inventory management practices and customer satisfaction levels. Additionally, financial data from Kingsway Shoes is analyzed to evaluate the impact of inventory turnover, stockouts, and excess inventory on the company's profitability and overall performance. The findings of the study are expected to provide valuable insights for Kingsway Shoes and other businesses in the retail sector regarding the importance of effective inventory management and control. The results will highlight the significance of maintaining optimal inventory levels, minimizing stockouts, and improving supply chain efficiencies to enhance customer satisfaction and drive business performance. By identifying areas for improvement in inventory management practices, Kingsway Shoes can streamline its operations, reduce costs, and enhance its competitive advantage in the market. The research also contributes to the existing body of knowledge on inventory management by offering practical recommendations for businesses looking to optimize their inventory control processes. Overall, this research project serves as a comprehensive assessment of the impact of inventory management and control on the performance of Kingsway Shoes in Owerri. The findings are expected to have implications for the broader retail industry, emphasizing the importance of effective inventory management strategies in driving business success and customer satisfaction.

Thesis Overview

BACKGROUND OF THE STUDY Inventories constitute the most significant part of current events of a large majority of companies in Nigeria and indeed many other part of the world. Because of the large size of inventories maintained by firms, a considerable amount of fund is required to be committed to them. Therefore, the efficient and effective management of inventories becomes imperative in order to achieved unnecessary turnover or to minimized the cost associated with keeping inventories. The neglect of inventory management and control by a firm will amount to jeopardizing its long run profitability and may even cause the firm to fail ultimately.

Inventory is defined as the stock of any item or material used in an organization. Therefore, an inventory management is the set of policies and control that monitor levels of inventory and determines the following:-

i.     What level should be maintain ii.     When stock should be replenished. iii.   How large order should be

However, inventory can include input such as human resources, financial, equipment e.t.c and output such as parts or component.

It is possible for a company to reduce its level of inventories to a considerable degree without any adverse effect on production and sales by using inventory planning and control techniques.

The reduction in excessive inventory carries a favourable impact on company profitability (Pandey 1999) in doing this however, care should be taken to avoid under stocking which directly affect production causing stoppage, loss of sales, loss of good will. etc.

Inventory forms a link between production and sales of a product. A manufacturing company must maintain a certain level of inventory in the form of raw materials, work in progress and finished goods. Raw materials inventory gives the firm flexibility in its purchase, without it, a manufacturing company must exist on a hand-to- moth basis buying raw materials in keeping with its production schedule. Work-in- progress are items of stock that are subjected to further processing to produced the finished product. finished goods inventory allows the firm flexibility in its production scheduling and in its marketing thus there is on incentive to maintain large stocks of all three types of inventory.

In an inflationary environment like Nigeria, there is the need to adopt a realistic inventory valuation method in order to give correct value of inventory in the profit and loss account and in the balance sheet which would have otherwise show an appropriate financial position of the organization and thus negating the purpose of accounting which is the provision of accurate financial information to investors, shareholders, management, government and her agencies and other related interested parties in order to assist them in taking decision about the organization.

It is in view of this that the need arises for an appropriate management and control measure to maintain the most accurate level of stock that will assist management of the organization carryout business in such a way that it does not portray the organization in bad shape.

STATEMENT OF THE PROBLEM The wide distance between the source of raw material and factories in Nigeria today has posed a great problem to management. Thus the management may not predict with certainty to delivery date of materials. How then does the management ensure that there is no hitch and delay in the supply of raw material to satisfy their day to day requirements without necessarily keeping excessive stock of raw materials and finished goods which represent investment from which no return is expected immediately.