EFFECTS OF THE MANAGEMENT OF FINISHED GOODS INVENTORY ON THE SALES VOLUME OF 7UP BOTTLING COMPANY, NORTH CENTRAL NIGERIA

Abstract

The challenge of keeping finished goods inventory at optimum levels has been a major issue that has affected the sales volume of 7UP Bottling Company Plc. This study examined the effects of the management of finished goods inventory and the sales volume of 7UP Bottling Company in North Central, Nigeria. The study examined how forecasting demand, product handling as well product planning and warehouse management impact on the sales volume of7UP Bottling Company in North-Central Nigeria. The study adopted a combination of survey, explanatory and exploratory research, which involved the use of primary data for analysis. The data collection exercise involved a focus group discussion (FGD) with different targeted group of customers. The total population of study was eight one (81) management staff of Seven-Up Bottling Company Plc in North Central, Nigeria and a sample size of sixty seven (67) was drawn using Taro Yamane’s sample size technique.The hypotheses were formulated in null form in line with the objectives of the study and the ordinary Least Squares (O.L.S) method of regression was employed for the analysis of the data collected. Findings revealed that there is a positive significant relationship between management of finished goods inventory and sales volume at (B = 1.896, t = 10.6, Sig = .000, P <.05) in 7UP Bottling Company in North Central, Nigeria. The study therefore recommends that the management of Seven Up Bottling Company Plc should implement the use of queuing systems (i.e. FIFO or LIFO) in the management of its warehouse because the system helps to reduce costs generated as a result of storage of excessive amount of unsold products.