IMPACT OF INVENTORY MANAGEMENT AND CONTROL SYSTEM IN THE PERFORMANCE OF A MANUFACTURING COMPANY IN NIGERIA

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IMPACT OF INVENTORY MANAGEMENT AND CONTROL SYSTEM IN THE PERFORMANCE OF A MANUFACTURING COMPANY IN NIGERIA (A study of Siba Water Company No. 105 Uyo Road, Ikot Ekpene Local Government Area.)

ABSTRACT

In any major manufacturing companies, inventory control is essential parts to check and carry out inventory adequately for proper recording. That is why in this subject topic we choose to carry out study on the impact of inventory management and control system in the performance of a manufacturing company in Nigeria. Which a case was SIBA water company no 105 Uyo Road, Ikot Ekpene Local Government Area. In order to carry out this study successfully, the work was divide into five chapters, while chapter one was on introduction and background of the study, chapter two reviewed of related literature on the subject matter, chapter three was on research design and methodology adopted in carrying out this research while chapter four was a data presentation, analysis and interpretation, while chapter five gave the summary of the work done. similarly, in SIBA water company, sample and sampling techniques were used which we have 65 and in population of the study we have five (5) department in that company which namely; Account section, purchasing officers, Transportation/Maintenance officers, Marketers, and Administration departments. Method of data analysis was chi-square method. Above all, questionnaire were administered to a few selected people in Ikot Ekpene and environment and a total number of sixty five (65) copies of the questionnaire were sent out to be completed by the people but a total of fifty five (55) copies were returned as population study. To this ends, the study revealed the following as major impact of inventory management and control, it enables the production process to flow smoothly thus enabling customer’s orders to be meet promptly and reduces the cost of carrying excessive inventories. That the inventory management techniques used by different manufacturing enterprises includes perpetual inventory review method, just in time inventory model, A.B.C analysis inventory models and a combination of modern and traditional methods that the problems inherent in holding inventories in manufacturing enterprises are in adequate warehouse facilities with the required infrastructures, risk of deterioration in the value of stocks, inadequate electricity and other amenities to keep inventory items in good form, inadequate managerial and technical know-how. It was recommended that management of manufacturing enterprises should make provision for adequate warehouse facilities, equip same with adequate infrastructure needed to keep stock in good state. Also, government should overhead the dilapidated economic and social infrastructures in order to reduce the cost of doing business in Nigeria as well as ensure full employment of factors of production which will bring about improved productivity in the country. Finally, it was recommended that manufacturing companies should train staff for/seriously development in our country.

TABLE OF CONTENTS

Cover page

Title page

Certification        –       –       –       –       –       –       –       –       i

Dedication –       –       –       –       –       –       –       –       –       ii

Acknowledgement      –       –       –       –       –       –       –       iii

Abstract     –       –       –       –       –       –       –       –       –       v

Table of contents        –       –       –       –       –       –       –       –       vi

CHAPTER ONE: INTRODUCTION

1.1    Background of the Study     –       –       –       –       –       1

1.2    Statement of Problem  –       –       –       –       –       –       7

1.3    Purpose of the study           –       –       –       –       –       8

1.4    Objective of the Study –       –       –       –       –       –       9

1.4    Research Questions    –       –       –       –       –       –       10

1.5    Research Hypothesis   –       –       –       –       –       –       10

1.6    Significance of the Study     –       –       –       –       –       11

1.7    Scope of the study      –       –       –       –       –       –       11

1.8    Limitation of the study         –       –       –       –       –

1.9    Definition of Terms             –       –       –       –       –       12

CHAPTER TWO: REVIEW OF RELATED LITERATURE

2.1    Introduction       –       –       –       –       –       –       –       14

2.2    What is Inventory       –       –       –       –       –       –       15

2.2.1 The Theoretical frame Work –       –       –       –       –       21

2.3    What are the aims of inventory Management in

Organization –   –       –       –       –       –       –       –       22

2.4    Types of Inventory Control System               –       –       –       23

2.4.2 The fixes order quality system              –       –       –       28

2.4.3 The cyclical provisioning or the fixed order interval system 31

2.4.4 The Material Requirements planning (MRP)   –       –       32

2.5    Importance of Inventory taking control in any manufacturing company    –       –        –       –       –       –       –       –       33

2.6    Kinds of costs associated with inventory                –       –       34

2.7    Stock checking and stock taking   –       –       –       –       41

2.7.1 Purpose of stocktaking                –       –       –       –       –       41

2.8    Objectives of inventory control     –       –       –       –       49

2.9    Requirement for effective inventory management/Inventory management software        –       –       –       –               –       51

2.10  Methods of controlling issue of stock     –       –       –       57

2.11  Problems associated with control system               –       –       58

2.12  The main objectives of stores control system –       –       72

CHAPTER THREE: RESEARCH METHODOLOGY

3.1    Introduction       –       –       –       –       –       –       –       82

3.2    Area of the study                –       –       –       –       –       –       82

3.3    Research Design        –       –       –       –       –       –       82

3.4    Sample and sampling techniques –       –       –       –       83

3.5    Population of the study               –       –       –       –       –       84

3.6    Procedure for Data Collection      –       –       –       –       85

3.7    Method of Data Analysis      –       –       –       –       –       85

CHAPTER FOUR: PRESENTATION, ANALYSIS AND INTERPRETATION OF DATA

4.1    Introduction       –       –       –       –       –       –       –       87

4.2    Presentation of Data           –       –       –       –       –       87

4.3    Data Analysis     –       –       –       –       –       –       –       88

4.4    Testing of Hypothesis          –       –       –       –       –       91

4.5    Discussion and summary of findings             –       –       94

CHAPTER FIVE:

INTRODUCTION, SUMMARY, RECOMMENDATIONS AND CONCLUSION

5.0    Introduction       –       –       –       –       –       –       –       98

5.1    Summary           –       –       –       –       –       –       –       99

5.2    Conclusion –       –       –       –       –       –       –       –       100

5.3    Recommendations      –       –       –       –       –       –       101

REFERENCES

Appendix

Questionnaire

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