INVENTORY MANAGEMENT AND CONTROL IN A MANUFACTURING ORGANIZATION

An efficient and effective inventory control and management in any organization is very vital in the survival of such organization. Inventory is defined as “An idle resource of any kinds that possesses economic values, and is classified in many ways thus: production inventories like raw materials, parts and components which enter the firm’s product in the production process. MRO inventories that is maintenance, repair and operating supplies which are consumed in the production process but which do not become part of the product, in process inventories, that is semi-finished products found at various stages in the production operation and lastly finished goods which are ready for shipment.
These inventories require high cost and investment commitments. Most businessmen view inventories and their attendant cost as “necessary evil” hence failing to asses carefully the benefits afforded their company or business by the existence of the inventory.
In a manufacturing company where these inventories are handled, the introduction of a well-planned and effective system or means of controlling these inventories is necessary for profitability and accountability to both the management and shareholders of the company whose interest, objective and aims under which the company or business was established must be protected. It is on this basis that the researcher chose the project topic relevant to manufacturing companies in Nigeria and with Akaraka Industries Nigeria Limited in mind.
In choosing this very topic, the researcher is not claiming any authority in the subject matter neither is he of the view that the topic is over flogged by other researchers. Rather, he is of the view that the topic should be related to present day happenings in the economy, an approach he adopted in the project work.
The project work has been divided into five chapters. Chapter one deals with the introduction of the approach.
Chapter two is a review of related literature on both the general economy and how it has affected the operation of Akaraka Industries Nigeria limited.
Chapter three outlines the methodology and procedure used in gathering the data.
Chapter four deals with analysis of data which simple percentage frequency was used and chapter five is the summary of the work, the conclusion and recommendation.

1.0 INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Advancement in all business activities has brought about the need for efficient inventory management and control. For the past decade inventories were handled by a clerk in a routine manner. But in recent times proper attention has been given to it. As a matter of fact, a well planned and effectively controlled inventory can contribute substantially to the organization’s growth and efficiency. Inventory control is a vital element in the management of materials.
However, before delving into this plight, it is appropriate to give the definition of inventory control.
According to Baily [1983:73] inventory control is the means by which materials of the correct quantity is made available as and when required, with due regard to economy in storage and ordering cost, purchase price and use of working capital. It involves the following processes.
[a] Accessing the items to be held in stock
[b] Deciding the extent of stock holding of items individually and collectively.
[c] Regulating the input of stock into the storehouses.
[d] Regulating the issue of stock from the storehouses.