Abstract
This study assessed the impact of inventory control on profitability particularly in Skol Brewery Ltd. The objective of the study was to assess the impact of inventory control on profitability particularly in Skol Brewery Ltd. The study was guided by the following research questions: what is the role of buffer stock (price stabilization, variability of demand and suppliers’ chain) on profitability of Skol Brewery Ltd? What is the effect of lead time (preprocessing time, processing time, and storage time) on the profitability of Skol Brewery Ltd? And what is the impact of replenishment of stock (stock availability levels and smart inventory purchasing) on the profitability of Skol Brewery Ltd? The study utilized quantitative research design contains with descriptive research design. The population of this research was 30 employees of Skol Brewery Ltd and was given a questionnaire. Data obtained from the questionnaire were processed into SPSS. Purposive sampling technique was used; questionnaires were used as instruments of data collection. The computation of findings involved both inferential and descriptive statistics. Descriptive findings involved computations of frequencies, means and standard deviation, and multiple linear regressions. The mean used is = and the standard deviation being (S) = Where, =
The research findings indicate that inventory control is effective and they greatly affecting the profitability of Skol Brewery Ltd; however, there are some challenges such striking a balance between overstocking and running out of store and underproduction stoppages, ineffective stock management can lead to inadequate holding of stock. Therefore, from the findings, the researcher concluded that this implies that the regression model is significant in predicting the relationship between inventory control variables and profitability of Skol Brewery Ltd and the researcher recommended that Skol Brewery Ltd should make sure the storage cost of the available or left over stock be maintained at a reasonable level of cost so has not to draw the cumbersome quota on the profit realized and also cost of sales have to be at minimal, so has not to expend the profit before making it.
