Verily the idea of production generally dates back
to the ancient days/times when human being concerned most production systems,
beginning with the family and craft system which involves into the factory
system culminating in mass production lines and the automation concept. This
productivity system are unique inventions of mankind. They are mean of which we
create an endless list of goods and services needed for sustained modern
society. Consequently, production planning and inventory control in an
organization is basically aimed at establishing the significance of the subject
matter organizations performance relating to the production process production
control and planning inventory control. This is consistently relevant activity
in production. Marketing and finance department in the organization toward
achieving its objectives.
TABLE OF CONTENTS
page - - - - - - - - - i
Declaration - - - - - - - - ii
Approval - - - - - - - - - iii
Dedication - - - - - - - - - iv
Acknowledgement - - - - - - - v
Abstract - - - - - - - - - vi
CHAPTER ONE: INTRODUCTION
1.1 Background of the Essay - - - - - 1
1.2 Statement of the Problem - - - - - 3
1.3 Limitations of the Essay - - - - - 4
1.4 Definition of Terms - - - - - - 5
1.5 Scope of the Essay - - - - - - 11
CHAPTER TWO: LITERATURE REVIEW
2.1 Concept of Production - - - - - - 12
2.2 Production Planning - - - - - - 24
2.3 Inventory Control - - - - - - 29
2.4 Significance of Production Planning and
Control - 33
CHAPTER THREE: SUMMARY, CONCLUSION AND RECOMMENDATION
3.1 Summary - - - - - - - - 35
3.2 Conclusion - - - - - - - - 36
3.3 Recommendation - - - - - - 37
Bibliography - - - - - - - - 40
of the Essay
essay is aimed at establishing the importance of production planning and
inventory control in an organization with particular emphasis in the
consideration on what the subject matter production planning, inventory control
is all about to be emphasis in the introduction of the essay.
production refers to the transformation of raw materials into output, while
production planning on the other hands is the determination of the production
operation in a manufacturing unit.
technique is an internal control system that serves to ensure the maintenance
of adequate inventory level in an organization. Moreover, inventory control
represents the major capital investment in an organization.
inventories in an organization function or stock record keepings stocks
therefore can be seen as finished goods reader for sales. The importance of
production planning and inventory control in an organization is to feed the
organization with information about the stock of the organization in other to
safeguard the organization from the risk of obsolesce of excess purchases of
raw materials, it also ensure that the needed raw materials for production
operation is constantly viewed or verified to meet the production. It also
serves as a basis of which the purchasing as the stock inventory control will
provide information about stock that are excess and those are by specification
i.e. those are where the organization will likely be running of stocks.
Control in an organization is an important aspect in the daily life of an
organization. This is because inventory control enhances organizational
progress. The existing problem in this stock inventory control which instigate
this standing to my point of view indirections. That is, it may be too large or
too small so if it is large relative to it, the cost of carrying the inventory
control will be equally higher than it needs be, while if it is too small, the
cost of controlling the inventory will be small. Consequently, the inventory
carrying cost include cost include such things as interest on the inventory
management, handing cost depreciation and obsolesce.
of the Problem
basic significant statement of the essay is aimed at bringing a clear picture
and transparent understanding of the essay “Production
Planning and Inventory Control in an Organization”, it also embraces the
problem facing the production sector, types of production and production
planning methods of controlling inventories in an organization.
this essay entails all the necessary inventory techniques available in the
management of inventories before and after being stored in the organization and
the policies or scheme that will regulate the production activities in the
of the Study
undertaking an academic study, the research is often constrained by many
factors ranging from inadequate facilities, this research is not an exemption.
There is infact information which could
have helped the researcher in portraying the topic in a wider perspective but
due to what some of the management staff of this company termed as “top secret
policies” the researcher was limited to make the maximum use of the little
information available to him.
Respondents’ unwillingness to respond
to questions also posed some problem. Some of them had little or no spare time,
while others still claimed that they do not understand the questions.
Lastly, some of the respondents showed
a general lack of interest in supply appropriate answers to the questions
control is designed to support the requisition processing, inventory
management, purchasing and physical inventory reconciliation function of
inventory management through a set of highly interactive capabilities, the
design of inventory control is based on the following key objectives:
To provide information on the
availability of stocked items and the status of stoked requisition.
To facilitate timely requisition.
To automatically record and service
To help minimize inventory management
consistent with service objective by passing purchasing decision on usage
is the stock of any item or resource used in an organization. Inventory can
exist raw material goods products, component parts, supplier and work in
process organization keep inventory for a number of reason including of
maintaining independent of operations to meet, the variation in product demand
to allow flexibility in the production scheduling to provide a safeguard to
variation in raw materials delivery time and to take advantage of economic
purchases and order size cost association with inventory include holding or
carrying cost set up or ordering cost and shortage order quantity of fixed time
period in the fixed order quantity model the same amount of inventory is
replenished in each order period. Necessary assumptions include demand is know
constant and uniform throughout a period lead times is constant and the price
per unit and ordering cost are constant.
of Inventory Record
is a situation where the stock official fails to take care of their
responsibility of managing and controlling record of raw materials and finished
goods the ability of manager and control stock of inventory has been
tremendously affecting production in an organization.
Methods of Inventory Control and Production Planning
planning and inventory control has no universal method of planning and
production operation and control of inventories.
inventory control differs from organization to organization mainly based on the
king of production activities involve in the organization. Most firm adopts the
scheme that will favour the operation.
stock control system should keep you aware of the quantity of each kind of
merchandize on hand. An effective system will provide you with a guide for what
brand it will reduce the number of cost sales resulting from being out of stock
of merchandize is popular demand. The system will also locate slow selling
articles and help indicated. Locate change in customer preference. The size of
your establishment and the number of people employed are determine factor in
devising an effective stock control plan can keep control by observation.
a border area between management economic (specially manufacturing economy),
mechanical engineering, industrial engineer nature and in particular the
economical informatics. It is occupied with the operational temporal
quantitative and even if necessarily planning, control and coherently with the
administration of all procedures, which are necessary with the production of
goods and goods, production planning can be divided into two (2) sub range:
Production program planning
Material requirement planning
Production Program Planning: In
production program planning (also primary requirement planning) kind of
quantity and manufacturing dates of the finished product (primary requirements)
Material Requirement Planning:
It is requirement how the quantity unit at intermediate products and raw
materials are needed for the covering of primary requirement.
the detailed planning one specifies, which machines are assigned to certain
orders. Short term task of the production control are to be seen particularly
in connection with short term change in order capacity reality.
of the Study
Planning and Inventory Control being a complex and dynamic concept has a wide
area of coverage so it is clear that research of this nature cannot hold
without problem. As such this work is limited to the area that are relevant to
the problem under investigation that is effective production planning and
inventory control in an organization.