ABSTRACT
This project work examined the
effects or inventory management on the continuity of operation business
organization inventory management. The need for sound inventory management is
thus vital to continue operation of business organization. The research work
will consist five chapters in order to ensure easy understanding of the research
work. Chapter one; this will contain
introduction, historical background of the case study problems, objectives of the study, significance of the
study, scope of the study, limitations and constraints and definition of terms.
Chapter two; contain literature review. Chapter three; will highlight research
methodology introduction, research design, sources of data, data collection
tools, administration of data collection tools, research population and sample
size, sampling procedure employed and method of data analysis. Chapter four;
contains presentation and analysis of data. Chapter five; will shield light on
summary of findings, conclusion, recommendation and references.
TABLE
OF CONTENT
CHAPTER ONE
1.0
Introduction 1
1.2
Historical Background of the Study
1.3
Statement of the Problem.
1.4
Objectives of the Study
1.5 Significance of the Study
1.6 Scope of the Study
1.7 Limitation and Constrains
1.8 Definition of Terms
CHAPTER TWO
2.0
Review of Related Literature
CHAPTER THREE
Research methodology
3.0
Introduction
3.1
Research methodology
3.2
Research Design
3.3
Sources of Data
3.3.1
Primary Data
3.3.2
Secondary Data
3.4
Data Collection Tools
3.4.1
Questionnaire
3.4.2
Interview
3.4.3
Observation
3.5
Administration of Data Collection Tools
3.6
Research Population and Sample
Size
3.7
Sampling Procedure Employed
3.8
Method of Data Analysis
CHAPTER FOUR
4.0
Presentation and Analysis of Data
CHAPTER FIVE
5.0
Summary of Findings, Conclusion and Recommendation
5.1
Introduction
5.2
Summary of Findings:
5.3
Conclusion
5.4
Recommendations
References
CHAPTER ONE
1.0 Introduction
Store/inventory
management is an important function in the management of an organization
Inventory
management is not related to manufacturing concern but it is also important in
non-manufacturing organizations.
This
point to the fact that these firms have substantial amount of working capital
locked up in inventory. The level of inventory is important to the efficient
operation of those firms, investment is important in inventories should be at
the optimum level.
Inventory
management is an important aspect to cost reduction schemes. It involves
determining the degree of materials required for the best results, planning and
designing of materials organization system.
Thus
for the purpose of this research, inventory covers;
i.
Raw materials
ii.
Work-in-progress
iii.
Finished goods
Inventory
usually forms a large population of many firms operations and effective
management is therefore required for proper functioning of the normal
production, selling operations of the business and for keeping the cost of
holding and ordering stock to beeriest minimum
Excessive
inventories vary for a long period are as loss or liquidity. Raw materials are
generally difficult to sell as the holding period increases. Therefore
exceptional circumstances where it may pay company to hold stock of raw
materials. This is possible under the condition of inflation and scarcity.
Work-in-progress
is for more difficult to sell. Similarly, difficulties may be faced when
disposes of the finished goods inventories at time, another danger of carrying
excess inventory is the physical determination of inventories deterioration
occurs with the passage of time this could be due to mishandling and improper
storage facilities. These factors are within the management and the necessary
investment in inventories are not sufficient to meet the demands of customers
regularly, the customers may shift to other competitors this as to loss of
market to this common relevant.
1.2 Historical Background of the Study
Alhaji
Aliko Dangote, MFR, GCON, a northerner from Kano state Nigeria, was born on10th
April 1957 in to a wealthy Muslim
family. Who owns the Dangote group, which has interest in commodities. The
company operates in Nigeria and other several countries in Africa, including
Benin, Cameron, Togo, Ghana, South Africa, and Zambia. As of march 2014, he has
an estimated net worth of $25 billion USD. Dangote is ranked by forbes
magazines as the 23th richest person in the world and the richest in
Africa. He surpassed Saudi Ethiopia billionaire Mohammed Hussein al Amoudi in
2013 by over $2.6 billion to become the world richest person in African origin.
ALHAJI ALIKO DANGOTE
(born on 10 April 1957 in Kano Nigeria) is a business magnate in Nigeria. From
the time he was young Dangote has an eye on business. Ha said “I can remember
when I was in primary school, I would go and buy cartons of sweet (sugar boxes)
and I will go start selling them just to make money.. I was so interested in
business, even at that time”. He studied business at the al-Azhra university in
Cairo Egypt and there after returned to Nigeria to borrow from his uncle SANUSI ABDULKADIR DANTATA, who provided
him a loan of #500,000 when ALIKO
was 21 years old, in order to start a business.
The
Dangote group was established as a trading firm in 1977; today it is a
multi-trillion naira conglomerate with many of it operator in Benin, Ghana,
Nigeria, and Togo, at present Dangote has enlarge his line of business to also
cover food processing, cement, manufacturing and freight. The Dangote group
also dominates the sugar market in Nigeria and is a major sugar supplier to the
country’s, soft drink companies, breweries and confectioners.
The
Dangote has moved a trading company to being the largest industrial group
in Nigeria and these includes; Dangote
sugar refinery, Dangote cement and Dangote flour, just to mention a few.
In
July 2012, Dangote approach the Nigeria Ports Authority (NPA) with the idea of
leasing on abandoned piece of land at the Apapa port, which was welcomed and
approved. He later built facilities for his flour company there. In the 1990s
he approach the central bank to allow his transport company to manage their
fleet of staff buses, a proposal which was also approved.
In
Nigeria today, Dangote group with his dominance in the sugar market and
refinery business is the main supplier (70% of the market) to the country’s
soft drinks companies, breweries and confectioners and confectioners, it is the
largest refinery in African and the third largest in the world, producing
800,000 tones of sugar annually. Apart from this Dangote group owns salt
factories and flour mills and is a major importer of rice, fish, pasta, cement
and fertilizer, the company export cotton, cashew nuts, cocoa, sesame seed and
ginger to several countries. It also has real estate, banking, transport,
textile and oil and gas. The company employs over 11,000 people and is the
largest industrial conglomerate in the whole of west Africa.
Dangote
has diversified in to telecommunication and its building 14,000 kilometers of
fiber optic cables to supply the whole of Nigeria. As a result Dangote was
honored in January 2009 as the leading provider of employment in the Nigeria
consultant industry.
1.3 Statement of the problem.
The
previewing economic pressure has led to general shortage or fall in supply of
raw materials. This has lead many organization embracing various management
techniques to collapse. This ranges from down sizing restricting repositioning,
re-engineering and so on. Most organization that cannot survive on this terrain
resulted into resentment and possible total close down or collapse
(chiquidations).
Many
organization engages in one business or the other either to produce good or render
services to customers, in doing this, they have to contented with inventory
manage problems. The objectives of the research study certificate on the
reprints for the award of national diploma (ND) in purchasing and supply
department institute of finance and management studies (IFMS) kwara state
polytechnic, Ilorin.
One
of the objectives of this study is to critically evaluates and review the
significance of management as practiced in Nigeria flour mills plc with a view
of appraised the cost effectiveness or otherwise of such techniques that are
employed.
1.4 OBJECTIVES OF THE STUDY
The
major objective of this study is to examine the importance of negotiation and
its contribution in an organization as a case study of Dangote Group of Company
Lagos. The primary observation of this project is to satisfy one of the basic
certificates for the award Higher National Diploma (HND) in Business
Administration. Moreover, the objective of the study is to:
i. Helps
develop appropriate negotiation system to improve production capability
ii. To
show how purchasing really contribute to the quality in an organization through
their department
iii. To
show its impact, to the accomplishment of the organizational goods.
iv. Negotiation
helps organization to have flow in production system and production continuity.
1.5 Significance
of the study
This
project is significant because it will educate the management of the case study
in the need for sound inventory management in an attempt to accomplish the
organizational objectives.
The
study is also significant to the researcher is that it will broader her
knowledge of the subject matter
Lastly
the project will be very useful to other researcher now and in the future may
be writing on the similar subjects.
1.6 Scope
of the study
This
study is restricted to the Dangote flour mill Nigeria plc Apapa owing to
certain limitations which will be explained in the next heading.
1.7 limitation
and constrains
In
the course of this research project, the researcher encountered the following
problems.
-
Financial problems
-
Attitude of the respondents
-
Time constrains
Financial problem:- this
constitutes only the major challenges encountered in the course of the study.
The researcher as a student has limited financial resources as therefore could
not afford to undertake a comprehensive study at the subject matter
Altitude of the respondent:- the
altitude of the company’s officials towards getting certain information was
very discouraging they refused to give any comments in certain areas which
relating to the company on the firm ground of confiderality.
Time constraint:- the
time allowed for writing and submission of the research project was strictly
limited for any in-dept study on the subject.
1.8 DEFINITION
OF TERMS
Inventory:- consist
of usable but idle resources. These resources may be any kind; it may include
for example raw material, money or machine
Inventory management: this
is the act of controlling amount of stock held in various forms with a business
to ensure smooth operate materials leads in the store.
Stock levels: the
basic method of controlling stock by quantity is by means of fixing for each
commodity, stock levels which are noted on the stock records and subsequently
used as a means of indicating when some action is necessary.
There
are various kinds of stock levels, but the fundamental controls are minimum
according and maximum level.
Lead time:- lead
time is the time interval between when the need for stock are recognized till
the time when good are sent to the delivered by the supplier.
Stock level:- the
basic method of controlling stock by quantity is by a means of fixing for each
commodity stock levels which are noted on the stock records and subsequently
used as a means of indicting when some action is necessary.
Maximum stock level:-
maximum stock level is the level above which stock should not normally be
allowed to rise. Before it is fixed take into accounts.
Minimum stock level:- minimum stock level is below which stock
should not normally be allowed to fall. If stock go below or fall below this
level, there is a danger of shortage of supply which may result in shortage of
production or operation.
Re-order level:- this is between the
maximum and the minimum stock level at which time is essential to initiate
purchase requisites for fresh supplies of materials. This point will usually be
strictly higher than the minimum stock to cover emergencies
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