INVENTORY MANAGEMENT IN A MANUFACTURING ORGANIZATION (A STUDY OF CHAMPION BREWERIES PLC, UYO)
TABLE OF CONTENTS
Cover page
Title Page
Certification – – – – – – – – i
Dedication – – – – – – – – – ii
Acknowledgement – – – – – – – iii
Abstract – – – – – – – – – iv
Table of Content – – – – – – – v
CHAPTER ONE: INTRODUCTION
1.1 Background of the study – – – – – 1
1.2 Research Problem – – – – – – 3
1.3 Objectives of the Study – – – – – – 3
1.4 Research Questions – – – – – – 4
1.5 Statement of Hypothesis – – – – – 4
1.6 Significance of the Study – – – – – 5
1.7 Scope of the Study – – – – – – 6
1.8 Limitation of the Study – – – – – – 6
1.9 Definition of the terms and Acronyms – – – 6
CHAPTER TWO: REVIEW OF RELATED LITERATURE
2.1 Introduction – – – – – – – 8
2.2 Overview of Inventory – – – – – 9
2.3 Types of Inventory – – – – – – 10
2.4 The Duties and Responsibility of the Storekeeper – 12
2.5 Principle of Inventory Management – – – 14
2.6 Why Manage Inventory – – – – – 16
2.7 Method of Controlling Inventory – – – – 19
2.8 Inventory Accounting – – – – – – 21
2.9 The Two Bin System – – – – – – 25
2.9.1 Fixed Order Quantity System – – – – 26
2.9.2 Visual System – – – – – – 27
2.9.3 Risk and Cost Associated with Inventories – – 27
2.10 Benefit Associated with Inventory Management – 30
CHAPTER THREE: RESEARCH DESIGN AND PROCEDURES
3.1 Introduction – – – – – – – 32
3.2 Area of the Study – – – – – – 32
3.3 Population of the Study – – – – – 32
3.4 Sample Determination and Sampling Techniques – 32
3.5 Sources of Data – – – – – – – 34
3.6 Data Presentation and Analysis Method – – – 35
3.7 Method of Data Collection – – – – – 35
CHAPTER FOUR:
PRESENTATION OF DATA AND ANALYSIS OF DATA
4.1 Introduction – – – – – – – 36
4.2 Data Analyses and Result – – – – – 36
4.3 Test of Hypothesis – – – – – – 47
4.4 Discussion of Findings – – – – – – 51
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATION
5.0 Introduction – – – – – – – 53
5.1 Summary – – – – – – – – 53
5.2 Conclusion – – – – – – – – 55
5.3 Recommendations – – – – – – 55
References
Appendix
CHAPTER ONE
INTRODUCTION
1.1 Background of the Study
The research intends to analyze the importance of inventory and how it helps in management process in an organization. Inventory management could material management or stock control and its managed differently according to each organization. To an accountant, material stock is a current asset represented by goods owned by the business as a particular or for the manufacturing of good for sale. To manufacturing company equipment is an item of stock for the company but noncurrent assets for a company using it to manufacture goods. Consequently their cost of goods sold is the acquisition cost of the goods that are sold, the closing stock or ending inventory is the cost of goods that have not been brought but not yet sold as at the end of a particular period.
Apart from the provision of goods and services one of main reasons for setting up any business is to make profit. In order to achieve this objective, the Champion Breweries management should have proper knowledge of storage and control of stocks. It must be emphasized that the success or failure or business venture emanates hold all the categories of stocks in terms of storage. Inventory control constituted an integral aspect of financial control, inventory refers to the physical stock of goods (which though may remain idle in the store) is essential for the smart of the company has economic value. They include raw materials, work in progress and also finished goods. Inventory is one of the company assets shortage of inventory can disrupt the production distribution cycle affect the survival of the firm.
According to Ezeagba (2001) inventory management is concerned basically with planning and control of material. Control is a process by which event are made to conform to plans. A proportion of Nigeria foreign exchange is spent on raw materials has resulted in massive. For example, management usually want to avoid the production distribution cycle which the is excessive inventory which introduces unnecessary carrying cost, obsolesce risk position. For proper management must concern itself with taking the best different department within the organization often have varying interest concerning stock, for e.g. the marketing department of products, the productions department would produce large batches or quantities or and considerable low. We will focus on research on manufacturing organization in Champion Breweries PLC Uyo Akwa Ibom State. It is responsible for the supplies of goods.
1.2 Research Problem
Inventory management is concerned basically with planning and control of material. This demand proper determination of suitable control systems to achieve cost minimization and avoidance of loss.
1.3 Objectives of the Study
The objectives of this study aim is looking at the pattern of management in manufacturing organization Champion Breweries PLC Uyo, and to assess the kind of organizational plan that is mostly used in the manufacturing. The objectives of this study are:
- To examine the type of inventory management and control system in production level.
- To examine relation to the practice of inventory management.
- To examine to avoid production stoppages and consequently customers dissatisfaction.
- To examine typing up a capital.
1.4 Research Questions
The following research questions are posed to provide search light to the solution of the problem under review.
- How does the effective inventory management evaluating helps in the success of manufacturing organization.
- What are the factors that influence in inventory management?
- Does the inventory investment cost help in determines an economic order quantity?
- How does the maintenance of inventory records and report asset in manufacturing organization?
1.5 Research Hypothesis
The following hypotheses are formulated for this study.
HO: Inventory, management is importance in the operation of Champion Breweries PLC, Uyo.
HO: Production organization need more inventory management than manufacturing organization.
1.6 Significance of the Study
Obviously, the essence of academic research project is to promote intellectual advancement and academic excellencies, this study will be restricted to the management and control of inventory in champion breweries manufacturing company Uyo.
- It will serve as reference literature for future researchers on inventory management.
- This study is also intended to high light the significance of inventory management in Champion Breweries.
- It provides the necessary information about inventory should be managed and controlled.
- It will help managers in the attainment of the organizational goals in their respective companies.
1.7 Scope of the Study
The study is limited to Champion Breweries PLC, Uyo and is based on inventory management in a manufacturing company.
1.8 Limitation of the Study
The inability of management to divulge certain information which they consider sensitive, the publication of which might be detrimental to their operations proved to be a limitation.
1.9 Definitions of Terms
Inventory Control: According to Lucey, it is a system used in a Champion Breweries to the monitor its investment in stock, it involve the recording and monitoring of stock level, forecasting future demand and deciding when and how many to order.
Maximum Stock Level: Lucey (2001) defines it as, the level above which stock should not normally exceed; it acts a warning to management that investment in stock is excessive.
Inventory Planning: According to Ezeagba (2001), this refers to the determination of types and quantities of inventory items which will be needed at future point for maintaining the flect or production schedule.
Minimum Stock Level: According Lucey (2004) defines as a stock of allowance to cover errors in forecasting the lead time or demand during the lead time, stock must not fall below this level.
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