ABSTRACT  This research work was conducted to find out the impact of inventory management on manufacturing organizations with a focus at Cadbury Nigeria Plc, Lagos. The objectives of this study is to explore all areas of inventory and stores management as it affects manufacturing industries. To demonstrate that inventory management development can bring about increased productivity. To highlight various importance of stock and inventory management development and also to prove that a well designed inventory management could result to profit oriented company and necessitate expansion processes. The data used for this study were collected from primary and secondary sources. Primary data were gathered through the use of questionnaires and personal observations while secondary data were collected through the review of existing literature; these includes textbooks, magazine, journals, Internet, unpublished project works and materials that are relevant to the study. The statistical tool used for the analysis of data and test of hypotheses was simple percentage method. The result obtained shows that Cadbury Plc, has increased productivity through inventory management. This confirmed that inventory management has a positive impact on employee moral and employees’ job satisfaction. Finally based on the findings, it was concluded that organizations and their managements should take inventory management and inventory valuation seriously in order to benefit greatly and as well contribute to nation economy as this will improve the welfare of citizens and the organizations at large. It was recommended among others that organization should create an internal control measure to check the effective performance of inventory and stock management for increased productivity.

CHAPTER ONE 1.0     INTRODUCTION 1.1     BACKGROUND OF THE STUDY It is pertinent to identity the two concepts “comparative analysis and inventory management in manufacturing companies. Before analyzing and inventory management let’s look closely, at the meaning of it. Comparative is an adjective of compare meaning having to do with comparism. While analysis means detail view of such comparism. Lawal (1993) describes as inventory detailed list of stock kept for future use in companies warehouse or stores. The reason for this study is to keep records and effectively compare the amount of stock kept that will keep the company with steady supply, as can be compares with other companies to enable it meet standard of performance; now and in future. With this proper inventory vat wit ion, it will keep the company in business for a long time, even at times of scarcity and low production of raw material. Also this gave opportunity for the firms to train skilled personals that can keep records of goods, that is needed for administrative consultations. It also brought management into another important aspect of inventory that made it possible to allocate, co-ordinate and future production rates, there by keeping the organization at a better standard, if valued economically. It also aids in the development of economic activities, thereby keeping the market steady with supplies of goods and services. Making it possible evaluate the in come and expenditures in the Companies accounts records this is to improved the image of the company due to its consistency in supplies, it also made it easier to promote the companies products. Unyimadu (1996) say’s that Inventory management in the company keep wastage of goods and services at a minimum rate, it moves effective when they compare their internal management procedures, with that of other firms and make corrections especially in valuations of inventories (inflows and out flows of goods). Increased productivity is encouraged through proper stock keeping. Historical events in inventory made ii possible to make correction as when due, this history can also be used by new companies in starting their mode of stock keeping. Cadbury P.L.C which serves as a case study has a lot developed ware houses all over the country, and as such deals with stock keeping as a whole, both in manufacturing storage and distributive purposes. They developed in stock keeping and stores management thereby increasing production. A company founded in England, (Inc to its expansion notions spread to Nigeria in 1940’s /50’s. With its headquarter in Lagos. The company proficiency at work made it possible to increase the strength of its staffs the outcome of such development in other wards will be regarded as an “Improvement” in the industry and it’s development till date it has been able to create awareness on the staffs and the public in general, increase employee moral, enhance promotion prospects, and increases employees job satisfaction etc. this have resulted in developing effective and efficiency business atmosphere which have created a lot of impact on productivity in everyday life.

1.2 STATEMENT OF PROBLEM This study focus on the needs and nature of inventory and stock taking administration problems and the likely solutions to ensure effective stock taking and inventory analysis, looking at its effect on production development. The purpose of this study is to consider the issue associated with inventory and stock takings as compared to other organizations ways of doing things. This investigation sets out to ascertain and clarify the notion by most managers that stock management and inventory control, to some people is waste of money and time on the part of the company. So does not actually regulate inflow, and outflow of goods due to the person in charge may not record and properly inspect the goods coming and going out:, this and many other things make the whole idea a misconstrued one. This research work also attempt to Find out the reasons why inventory control can not stop unnecessary waste in company resources, incorrect accounting of goods stock taking and reduce theft noticed in the company. This study also identifies and make vital contribution to solving some of the problems of stores management development and productivity in the food and beverage industries. 1.3     OBJECTIVE OF THE STUDY The objectives of the study as determined by the researcher are: 1.       To explore all areas of stock and inventory management and its effectiveness in the company and its branches as well as other companies activities so as to be more proficient in growth in the competitive industry. 2.       To demonstrate how inventory control, have help growing companies succeed in checking activities of theft, wastage and unwanted spoilage of goods. 3.       To highlight various impediments against inventory and stock keeping management control in food manufacturing companies. 4.       To prove that effective store management control and stock takings can result in profit oriented company and necessitate expansion processes.

1.4     RESEARCH HYPOTH ESES In the course of this study, the following hypotheses were formulated by the researcher.

Hypothesis One