The study examines the impact of inventory management practice on the profitability of Medium Scale Food Industry in Nigeria. There is a dearth of study relating to inventory management practice impact on medium scale food industry in a developing economy like Nigeria. Both primary and secondary data were employed in the study using simple random sampling; sampled of medium scale industrialists and their workers were selected. Also, samples of seven companies financial data from period of 2002 to 2012. Employing regression techniques, the impact of inventory management on profitability was analysed using stata10 statistical packages. The result of data analysis and hypotheses tested indicated strong and positive relationship between approaches of inventory control and financial performance (r=0.794). This implies that approaches of inventory control affected financial performance by 79.4%. It further showed that raw material (f=2.609) work –in- progress (f=6.552) were more significant to profitability than finished goods (f=1.859) Conclusion from the pooled result showed that there was a strong relationship between inventory management practice and profit performance of selected medium scaled food industry, therefore, good inventory management approach has significant effect on profitability of medium scale food industry.
Inventory, Inventory management practices, Medium scale Foods industry, Profitability
