Select Currency
Translate this page

THE IMPACT OF INVENTORY MANAGEMENT AND CONTROL ON PERFORMANCE.

Format: MS WORD  |  Chapter: 1-5  |  Pages: 73  |  2314 Users found this project useful  |  Price NGN5,000

  DOWNLOAD THE FULL PROJECT

THE IMPACT OF INVENTORY MANAGEMENT AND CONTROL ON PERFORMANCE

 

ABSTRACT

This research work is an attempt to look into the impact of inventory management and control on performance using a  manufacturing company. It was conducted using Tower Galvanized Products (GTP) Ltd Kaduna. The research work was carried out with the intention of examining the pit falls of manufacturing companies in carrying out necessary management and control of their inventories. For this purpose the study was divided into five chapters. Chapter one introduced the research topic, the objective of the study was also define which include to access and highlight the different methods of inventory, planning and reeducation and the most appropriate one. Chapter two was concerned with the review of related literature and points like objectives of inventory management which include to maintain minimum investment in inventories to maximize profitability were discussed. Chapter three dealt with the methodology used in collecting data. In this chapter the random sampling technique was adopted and questionnaire were used to collect the data. Chapter four has to do with the analysis of the various data collected using the mean. In chapter five, summary of the research work was don and conclusion were drawn to give recommendations in that a manufacturing companies with a view to profit maximization and cost reduction should adopt and maintain an effective inventory management and control system

 

CHAPTER ONE

INTRODUCTION

1.1   BACKGROUND TO THE STUDY

Inventories constitute the most significant part of current events of a large majority of companies in Nigeria and indeed many other part of the world. Because of the large size of inventories maintained by firms, a considerable amount of fund is required to be committed to them. Therefore, the efficient and effective management of inventories becomes imperative in order to achieved unnecessary turnover or to minimized the cost associated with keeping inventories. The neglect of inventory management and control by a firm will amount to jeopardizing its long run profitability and may even cause the firm to fail ultimately.

Inventory is defined as the stock of any item or material used in an organization. Therefore, an inventory management is the set of policies and control that monitor levels of inventory and determines the following:-

i.      What level should be maintain

ii.     When stock should be replenished.

iii.    How large order should be

However, inventory can include input such as human resources, financial, equipment e.t.c and output such as parts or component. It is possible for a company to reduce its level of inventories to a considerable degree without any adverse effect on production and sales by using inventory planning and control techniques. The reduction in excessive inventory carries a favourable impact on company profitability (Pandey 1999) in doing this however, care should be taken to avoid under stocking which directly affect production causing stoppage, loss of sales, loss of good will. etc.

Inventory forms a link between production and sales of a product. A manufacturing company must maintain a certain level of inventory in the form of raw materials, work in progress and finished goods. Raw materials inventory gives the firm flexibility in its purchase, without it, a manufacturing company must exist on a hand-to- moth basis buying raw materials in keeping with its production schedule. Work-in- progress are items of stock that are subjected to further processing to produced the finished product. finished goods inventory allows the firm flexibility in its production scheduling and in its marketing thus there is on incentive to maintain large stocks of all three types of inventory.

In an inflationary environment like Nigeria, there is the need to adopt a realistic inventory valuation method in order to give correct value of inventory in the profit and loss account and in the balance sheet which would have otherwise show an appropriate financial position of the organization and thus negating the purpose of accounting which is the provision of accurate financial information to investors, shareholders, management, government and her agencies and other related interested parties in order to assist them in taking decision about the organization. It is in view of this that the need arises for an appropriate management and control measure to maintain the most accurate level of stock that will assist management of the organization carryout business in such a way that it does  not portray the organization in bad shape.

1.2   STATEMENT OF THE PROBLEM

The wide distance between the source of raw material and factories in Nigeria today has posed a great problem to management. Thus the management may not predict with certainty to delivery date of materials. How then does the management ensure that there is no hitch and delay in the supply of raw material to satisfy their day to day requirements without necessarily keeping excessive stock of raw materials and finished goods which represent investment from which no return is expected immediately. In line with this, the major problem face by management is the determination of what stock to be kept, when to reorder, of what cost to reorder, what the production level should be, how work in process and stages involved should be controlled, movement of finish goods from point of production into the market. The disadvantages associated with huge investment in inventory (tying down of capital, increase in holding/carrying cost etc) act as a detriment in management in committing huge sum of funds in inventory. Conversely making little investment will be disastrous as it will lead to frequent stock out and consequent disruption of production system and incurring additional cost resulting from frequent ordering. Since no company especially a manufacturing company can operate without keeping stock, it is necessary to check the occurrence of pilferage depletion, damages, breakages, obsolescence etc. among other things.

1.3   OBJECTIVE OF THE STUDY

The primary objective of this research work is to consider inventory control system as described and discussed by different authors. This will be taken as a standard against which the inventory system of the company under study will be appraised to determine its efficiency and suitability in the peculiar environment it operates.

The objectives of this study includes:  

1. To determine an optimum level of inventory to be maintain by the company under study.

2. To assess and highlight the different methods of inventory planning, control and valuation and the most appropriate one for a manufacturing company.

3. To highlight the need for and nature of inventory.

4. To make viable recommendations on the basis of the out come of the research.

5. Effect on delivery date with certainty.

1.4   SIGNIFICANCE OF THE STUDY

The significance of a proper and efficient inventory control and management cannot be over emphasized. Its effect is not only on the individual company but on the economy as a whole. This study is meant to find solutions to the itching problems of Tower Galvanized Products (TGP) Nigeria limited Kaduna in inventory management and control. The study will also be of immense benefit to the owners and management of the company under study, their creditors and prospective shareholders who might  wish to invest in the company. This is so because managing inventories efficiently and effectively will help the company to avoid unnecessary investment. It helps the management in quick and accurate decision making. It will also help to build-up the goodwill of the current asset of many companies. Finally, the knowledge required from this study will broaden the existing knowledge in this field and aid researcher in applying it to other companies or organizations.

1.5   RESEARCH QUESTION

With reference to the statement of the problem highlighted above and considering the scope and limitations of this study the following research questions are formulated.

1. How does the company determine the optimal level of stock to be maintain?

2. How appropriate is the valuation method given the present inflationary situation?

3. What determine the level of control to be maintain on various types of stock?

4. What practical problems are in the ways of progress of inventory management and control in the area under study?

5. How does the effect of large investment inventory affect the management (holding cost).

1.6   SCOPE OF THE STUDY

This research work is focused on inventory management and control in Tower Galvanize Product (TGP) Nigeria limited, Kaduna during the year 2001-2006 as it affects the full implementation of the basic concepts of inventory management. Associated issues like inventory procurements, storage and physical distribution policy of the company will also be examined.

1.7   LIMITATIONS OF THE STUDY

1. Lack of corporation from subjects leading to the use of smaller than the anticipated number this can affect the quality and the generalization of the findings.

2. Inability to use correct data gathering instrument due to ignorance about their availability

3. Low return rate of questionnaires

4. Using less then fair representative sample due to inability to research subjects.

1.8   DEFINITION OF TERMS

- Inventory: This is the list of items held in stock by a company at any particular time.

- Stock: This consists of all goods and materials stored by an organization. It is a supply of items which are kept for future used.

NB for the purpose of this research work, stock and inventory are sometimes used interchangeably

- Lead time: This is also known as reorder period or delivery. It is the period of time between ordering and reception of goods ordered for.

- Re-order level: This is the point at which it is necessary to initiate purchase requisition for new supply of materials.

- Minimum stock level: This is the level below which stocks should not normally be allowed to fall. It can be said to be buffer or safety stock which makes allowances to cover for error in forecasting the lead time or the demand during the lead time.

- Maximum stock level: This is the level above which stock should not normally be allowed to rise.

  DOWNLOAD THE FULL PROJECT

THE IMPACT OF INVENTORY MANAGEMENT AND CONTROL ON PERFORMANCE.

Not The Topic You Are Looking For?



For Quick Help Chat with Us Now!

+234 814 010 7220

+233 55 397 8005


HOW TO GET THE COMPLETE PROJECT ON THE IMPACT OF INVENTORY MANAGEMENT AND CONTROL ON PERFORMANCE. INSTANTLY

  • Click on the Download Button above.
  • Select any option to get the complete project immediately.
  • Chat with Our Instant Help Desk on +234 814 010 7220 for further assistance.
  • All projects on our website are well researched by professionals with high level of professionalism.

Here's what our amazing customers are saying

Abdulrahman Jibrin
Nti Abaji
Nice one work prompt delivery tanx
Very Good
Dau Mohammed Kabiru
Kaduna State College of Education Gidan Waya
This is my first time..Your service is superb. But because I was pressed for time, I became jittery when I did not receive feedbackd. I will do more business with you and I will recommend you to my friends. Thank you.
Very Good
MATTHEW NGBEDE
Ahmadu Bello University
I wish I knew you guys when I wrote my first degree project, it took so much time and effort then. Now, with just a click of a button, I got my complete project in less than 15 minutes. You guys are too amazing!
Excellent
Abdul Mateen Iddrisu
UDS
At first I taught is a site full of fraudsters until I saw my project in my Gmail after my payment.. THANK YOU IPROJECTMASTER and May God the almighty bless u guys abundantly
Excellent
Adam Alhassan Yakubu
UDS
Excellent work and delivery , I promise to share my testimonies everyone in need of this kind of work. You're the best
Excellent
JONNAH EHIS
Ajayi Crowther University, Oyo
I was scared at first when I saw your website but I decided to risk my last 3k and surprisingly I got my complete project in my email box instantly. This is so nice!!!
Excellent
Oluchi From Michael Opara University
If you are a student and you have not used iprojectmaster materials, you are missing big time! iprojectmaster is the BEST
Excellent
Abdulrazak Bello Marsha
Usman Dan fodio University
It was quite a better guide for project and paper presentation purpoting. Many thanks.
Average
Peace From Unilag
I cried not knowing how to go about my project but the day i searched online and saw iprojectmaster, i called and got my full project in less than 15minutes, i was shocked!
Excellent
Joseph M. Yohanna
Thanks a lot, am really grateful and will surely tell my friends about your website.
Excellent

FREQUENTLY ASKED QUESTIONS

How do I get this complete project on THE IMPACT OF INVENTORY MANAGEMENT AND CONTROL ON PERFORMANCE.?

Simply click on the Download button above and follow the procedure stated.

I have a fresh topic that is not on your website. How do I go about it?

How fast can I get this complete project on THE IMPACT OF INVENTORY MANAGEMENT AND CONTROL ON PERFORMANCE.?

Within 15 minutes if you want this exact project topic without adjustment

Is it a complete research project or just materials?

It is a Complete Research Project i.e Chapters 1-5, Abstract, Table of Contents, Full References, Questionnaires / Secondary Data

What if I want to change the case study for THE IMPACT OF INVENTORY MANAGEMENT AND CONTROL ON PERFORMANCE., What do i do?

Chat with Our Instant Help Desk Now: +234 814 010 7220 and you will be responded to immediately

How will I get my complete project?

Your Complete Project Material will be sent to your Email Address in Ms Word document format

Can I get my Complete Project through WhatsApp?

Yes! We can send your Complete Research Project to your WhatsApp Number

What if my Project Supervisor made some changes to a topic i picked from your website?

Call Our Instant Help Desk Now: +234 814 010 7220 and you will be responded to immediately

Do you assist students with Assignment and Project Proposal?

Yes! Call Our Instant Help Desk Now: +234 814 010 7220 and you will be responded to immediately

What if i do not have any project topic idea at all?

Smiles! We've Got You Covered. Chat with us on WhatsApp Now to Get Instant Help: +234 814 010 7220

How can i trust this site?

We are well aware of fraudulent activities that have been happening on the internet. It is regrettable, but hopefully declining. However, we wish to reinstate to our esteemed clients that we are genuine and duly registered with the Corporate Affairs Commission as "PRIMEDGE TECHNOLOGY". This site runs on Secure Sockets Layer (SSL), therefore all transactions on this site are HIGHLY secure and safe!