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THE ROLE OF INVENTORY MANAGEMENT ON THE NIGERIA BREWERY INDUSTRY

Format: MS WORD  |  Chapter: 1-5  |  Pages: 73  |  1257 Users found this project useful  |  Price NGN5,000

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THE ROLE OF INVENTORY MANAGEMENT ON THE NIGERIA BREWERY INDUSTRY

 

ABSTRACT

The examination of the role of inventory management is the sole aim of this project work. To make the work more apprehendable and comprehendible a particular organization is chosen as case study. This company is known as Nigeria Brewery Industry 9th Mile Corner, Enugu. The aims of organizations are reviewed as a having the objective of either profit maximization or rendering of efficient optimum service of which the case study company is out for both. This project work intends to bring into light inventory functions as an activity or means of achieving these objectives via or through its immense contribution to organizations. The research work introduce inventory functions, its general back ground statement of general problem. It treasure review on the various authors on the subject matter on theoretical background were produce by the researcher.   

 

CHAPTER ONE

INTRODUCTION

1.1     BACKGROUND TO THE STUDY

Inventory management is the science based art of controlling the amount of stock held in various form within as business to meet economically the demand placed upon that business it is thus a machinery used by brewery industry to determine the optimal level of stock to hold at specific periods of time depending on certain such as cost minimization and / or anticipated price increase. The need for inventory arises because of the dynamic nature of the environments within which the brewery industry exist. According to Patterson and Silver, in an ideal situation where the demand upon a business is known exactly and in advanced  where supplies arrives when due, there would be little need for any inventory at the end of financial periods.

In practices however, the demand is not known in advance and suppliers could arrive either early or late as the case may be and this brings about the need for inventories to act as a butter between the vagaries of demand and supply. Patterson and Silver expressed the need for effective management of inventory according to them inventories by a brewery as expressed associated with inventory management often form a substantial amount of the total expenditures incurred by any brewery. This also stated that inventories determined the extent to which purchasing manufacturing and distribution activities of any brewery could be rationalized to ultimately provide competitive customer service.

In late 20’s many business sectors in U.S.A experienced great slumps. These were as a result of materials or stock management. In effective it was during this period that some businessmen  coined the statement “stock are the grave yard of a business”. This statement means that is with her stock is bound to face some financial hitches which may in effect, grind the business wheel to halt.

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