TABLE OF CONTENTS
BACKGROUND OF THE STUDY
STATEMENT OF THE PROBLEM
JUSTIFICATION OF THE STUDY
AIMS AND OBJECTIVE OF THE STUDY
AND LIMITATION OF THE STUDY
AND PLAN OF THE STUDY.
OF INVENTORY MANAGEMENTS
OF WORKING CAPITAL IMPACT ON INVENTORY
MANAGEMENT ON WORKING
OF SOURCING INVENTORY
OF DATA COLLECTION.
AND INTERPRETATION OF DATA
ANALYSIS AND INTERPRETATION OF DATA:
INVENTORY ANALYSIS AND METHOD OF
OF STOCK PLANNING
CONCLUSION & RECOMMENDATION
1.1 BACKGROUND OF THE STUDY: THE NATURE AND
SCOPE OF STOCK MANAGEMENT.
The project brings to light
the meaning and essentials of inventory management and how they may be used to
improve the working capital of a business. Many business decisions can be taken
only in respect of knowing the cost involved. Decision under the management of
a company finance are basically those involving capital investment decisions on
the one hand and short term decision on the other hand. While short-term
decision incorporate within its framework, the concept of working capital
long-term capital and cash flow generated from such capital investment are
undoubtedly essential for maintaining the liquidity of the firm. Inventory
management can assist in improving the working capital of a business by
providing the data necessary to arrived at the best decisions. Obviously, there
are many definitions as many authors will view it, these authors may view it
from different perspective in attempt to justify their satisfactory among the
various definitions are the following:
Inventory is the totality of
those items of tangible property, which are held for sale in the ordinary
course of business or held in the process of production, for such sales of
currently been available for sale inventory is a general term describing goods
which are normally held in house and store gang, the bulk of these goods are
usually intend for use in connection” with production or operation activities.
But the term inventories cover finished products awaiting dispatch to
customers, scrap and package and purvey return to suppliers.
Inventories are caution to absorb
planning errors and fluctuation in supply and demand to facilitate smooth
production and marketing operation. It may be classified as raw materials,
work-in-progress and finished goods.
Management: Among the various definitions are; Management
is a social progress entailing a body of knowledge, about managing and
managing is the process of planning,
organizing, directing, coordinating men, machines, and achievement of
“Herold” describe it as “the process of
getting things done through people and with people”
E.I.F Breach” in his own opinion defined
“management as social process entailing responsibilities for the effective and
economics planning and regulation of the operations of their enterprise in
fulfillment of s given purpose or task. With this we know that management is
the body of knowledge about managing.
management can be defined as the functions which include the development and
administration of policies, system and procedure which will minimize total cost
relating to inventory decision and related functions, such as purchasing,
production, marketing service requirement etc.
Inventory management is almost the same
in many organizations although, techniques adopted may differ according to
business conditions. The top must carry out the basic functions management such
as planning, organizing, staffing, controlling and directing which helps in
policy making and establishment limits for keeping inventory.
The basic principles brings the stores
of the company is the goods requisitions signed by authority concerned.
1.2 STATEMENT OF THE PROBLEM
It is no gain saying that
the Nigerian economy is in stage where it is extremely difficult for most firms
to survive so much that a high level of uncertainty pervades the business
sector regarding the continuity of the future operation of the affected firms.
Continuation of this trend does nothing but spells dooms as the collapse of
most business concern is but a matter of time. No matter how well established
or large a corporation’s capital based may be without due regard being paid to
working capital there is a bound to be a resultant adverse effect on the
operations of firm in question. The management of inventories is as importance
for the company’s short term financial situation as the management of cash and
again a balance has to be found.
1.3 JUSTIFICATION OF THE STUDY
The study will enable the
management of the Nigerian Bottling Company to know whether to produce raw
materials locally or to import.
It will also help the firm’s resource
order to increase the shareholder’s wealth as in the theory of finance it will
as well enlighten the entire management team and especially financial managers
on the importance of effective planning, management and control of inventories
so as improve the working capital of the company.
The research work will also
enable management to develop correction measures to reverse any unfavorably
development in the management of company inventories
1.4 AIMS AND OBJECTIVE OF THE STUDY
The aims of the study is to
highlight the various inventories and to examine inventory models and show how
it can be use to improve working capital.
It also intended to examine the method
of stock valuation with regard to Nigerian Bottling Company Ilorin Branch.
The evaluation of the procurement
procedure and method of inventory control adopted by NBC so as to give advice
(Where necessary) to the management on some deficiency regarding its management
of stock which may hinder the increment of its working capital.
To enlighten the public about the
misconception it may hold against the company and to find out the benefit
inventory control to the company.
To proffer suggestions to the company
would be brought under control or at least minimized, reference to my visit and
experience at NBC Ilorin.
To proper on the impact of effective
inventory management in NBC
AND LIMITATION OF THE STUDY
The field on inventory used
in NBC can be classified as raw material, work in progress and finished goods.
However, in the course of the research,
some limitations or constraints were encountered, staff did not rendered their
maximum cooperation’s while some entertains the fear that, they might reveal
confidential (top secrete) information about the company. This forced me to
obtain permission from the assistant plant manager (APM) in written before the
research could be fully executed.
Also, there were some
problems of delay and a lot of the money was wasted in the process of going to
the company to conduct the research.
Time constraint: Due to the
time given for the research work. The research could not dedicated all of her
time to carry out the research properly because of her academic obligation
Finance: money is also a
major problem as the researcher has limited amount to conduct the research.
AND PLAN OF THE STUDY.
The study will be divided
into five chapters, chapter one deal with the general introduction of the
topic, background of the study, statement of problem, justification of the
problem, aims and objective of the study, scope and limitation of the study of
organization and plan to study, definition of accounting terms.
Chapter two focuses of the
literature review introduction of concept, characteristics of inventory
management, meaning and use of working capital, channel of source of inventory
Chapter three dealt with
research methodology and data collection, historical background of the Nigerian
Bottling Company, types of data collected, sampling method and methods of data
collection and analysis.
While chapter four focuses
on data presentation and analysis, analysis and interpretation of data
inventory analysis and method of pricing, nature of stock planning and types of
Lastly, chapter five also
focuses on the summary of the study and makes conclusion and recommendation for