of the Study
of the Research Problem
for the Study
of the Study
of the Study
of the Study
Management and Control
2.4 Classification of Inventory
for Carrying Inventory
Affection EO AND EPQ, EDQ AND EPQ
of Uni-Lever Brother
of the Data
of Data Analysis
DATA PRESENTATION, ANALYSIS AND INTERPRETATION
Presentation And Analysis
4.8 Cost Saving Effect of EPQ Model on Finished Products
CONCLUSION AND RECOMMENDATIONS
of Major Findings
1.1 BACKGROUND OF THE STUDY
A critical review of
the financial statement of most companies would review the substantial amount
normally held on inventory.
Inventory refers stock
of items used within the production system or the operation of business coming
among which are: raw materials, semi finished (working – in progress) and
finished goods of a given company.
Inventories are stack
of goods that are maintained by a business in anticipation of some future
demands such demands could be for products manufactured by the company or
supplies used in the transformation process.
In other words,
investment are current asset and relate to a specific accounting period, their
use should be as mush as possible, be regulated within the period to which they relate.
The type of
inventories kept by a firm depends on the firm in question, the business
operation, financial resources and other factors. Inventory control system must
always maintain a sufficient amount of material and supply to meet the demand
of the production unit being out of stock and item may course idle time and
production re-scheduling management is the function in business of making
decision and hence of what to determine and follow how resources are used and
what is produced.
It is a management responsibility to define
the nature of organization.
The availability and
quality of those inventories, is therefore a parameter to determine their
Their investment in
inventories is usually so high that proper and continuous reliance on them. The
stock in an investment which repress out some equivalent amount in cash from
which profit or margin is expected. However where the stock does not attract a
profit due to the stock lying follows in the stock therefore this recognition
of the afore said, that the topic is chosen.
BENEFIT ANALYSIS AND INVENTORY CONTROL
NIGERIA MANUFACTURING COMPANY
Though the term
inventory control may have different meaning to different meaning to different
users, more often, the term is usually construed to mean materials controller
stock control .
Generally, inventory control
is the system that ensures the provision of the required quantity material at
the required time with the minimum amount of material costs.
It is appropriate or
relevant to know that high level of service and production cannot be provided
unless there is an efficient inventory management and facilities, inventories
must serve as butter between production, transportation and consumption.
In conclusion on
inventories as cussion help to absorb planning error and unforeseen fluctuation
in supply and demand and to facilitate smooth and marketing function.
1.2 STATEMENT OF THE RESEARCH PROBLEM
There are many if what
is in handing of inventories some of the more significant cast are interest
charge storage cost, handing cost, insurance cost, obsolescent cost and space
utilization cost inventories load to loss of sales and customers good will.
manufacturing companies as a whole, are passing through a temperature period as
a result of the prevailing state of the economy the survival of any company
depends on how effectiveness and efficient the company’s strategies nearly all
manufacturing concerns are aiming at providing goods and services to customer
at the least possible cost in order to generate maximum profit.
However, it was
realized that without keeping the necessary level of inventory the manufacturing
concern might spend too much in keeping excess inventory, of loss customer as a
result of keeping excess low level of inventory necessaries the need to venture
in to studying inventory (as an integrate arm of production) Uni-Lever Brothers
Nigeria Plc produced by the company shows the strength of the organization this
implies that the company must have been keeping a form it an inventory level, even
when the economy was bad that is, when
getting raw materials was a problem, Uni- Level Brothers has been moving
on well, that makes the company a special one and studying this inventory
management is a worth while experience. Since inventory cost do affect
profitability companies are confronted with the problem of:
carrying obsolete goals in stock.
b. Maintain adequate liaison between the
production control purchasing and marketing department.
c. Try to maintain effective inventory
control to avoid over large orders replenishment orders out or phase with
1.3 JUSTIFICATION FOR THE STUDY
The main purchase of
the study is to have a close examination and assessment of the inventory
control technique adopted by the inventory in determining the performance as a
industry maintains some form of inventory for survival and continuity purpose.
The current economy situation makes inventory control a must for any business
organization. It also necessitates the
fact for making rationale decision in order to guide against having excess or
insufficient level of inventory.
Nigeria Plc is one of the leading firms in the household industry in Nigeria today. It therefore means that the company uses
large amount of stock because the current economic situation manifested by the
difficulties associated with getting foreign exchange needed to import some of
its raw materials is not in the firms favour. It is as a result of this problem
that this study becomes very important the management stands of gaining
immensely the result of these findings.
1.4 OBJECTIVES OF THE STUDY
It is aimed at knowing
the structure of inventory management and the administration of stock as it
obtain in Uni-Level brothers Nigeria Plc that is, the aim of this study is to
examine the material management and inventory control of named company.
The motive behind this
study is to evolve a decision that will bring or prune the series of cost that
may be incurred. This will maintain
stock levels so that the combined cost, ordering cost, holding cost, stock out
cost are put to the bearest minimum, without having negative effect on the
organization. This study has the
following as the principal objectives.
To study the inventory
management strategy of inventory and stock control system that will help in
keeping stock records (stock information).
a. Stores layout i.e. space utilization and
location of individual product.
b. Analyze the benefits to be received from
effective and efficient control of inventory and effect of poor control system.
c. Cost of material handling in terms of
delivery to customer and the cost of receipts from the National Warehouse
d. To identify the procedures and process of
inventory management of finding the strengths and weakness of the company and
making relevant recommendation as to how the weakness can be reduce and improve
on the strengths.
1.5 SCOPE OF THE STUDY
The study shall examine
the cause of the problem of abandoned capital assets in relation to inventory
and stocking. The necessary information
needed are supplied by the inventory records and financial data kept by the
company. It is important to state that
this study will implore the use of deterministic quantity.
The study provides
information about inventory control in legal depot, which headless mostly
finished goods of the study also cover the input and output level ignoring all
work-in-progress will in turn be controlled.
1.6 LIMITATIONS OF THE STUDY
There are many
constraints envisaged from the research, these include the followings:
research work is limited to a manufacturing concern
limitation, within which to carryout research works
c. The data provided by the manufacturing
outfit concerned might be adequate and incredible.
d. Other limitation attitudes in the course
for souring primary data through personal interview and observation.
1.7 DEFINITION OF TERM
The terminologies used
in this study are defines below for a better understanding of this work in
order for the researcher not to be misinterpreted.
It could be defined as the benefit given up for the purpose of acquiring a
desired goods & services.
It refers to an advantage or profit that gives us a helpful and useful effect
that has made a good education. It is
also known as payment made by the state to someone in needs.
Is the process of breaking a complex topic or substance into smaller parts to
gain a better understanding of it or the separating of any material or abstract
entity into its constituent element.
Refers to stock of item used within the production system or the operation of
business coming among which are: raw materials, semi finished goods of a given
Is the power to make decision about how a country in an area or an organization
It is an industry producing goods in a large quantity.
Is a business organization that makes money by producing or selling goods service. It is also known as a commercial business
been with others in an enviable way e.g. a group of actors, singers or dancers
in a companies.