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The Impact Of Inventory Management And Control On Performance
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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.
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ABSRACT - [ Total Page(s): 1 ]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 objectiv ... Continue reading---
