-
The Impact Of Inventory Management And Control On Performance
CHAPTER ONE -- [Total Page(s) 3]
Page 3 of 3
-
-
-
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.
CHAPTER ONE -- [Total Page(s) 3]
Page 3 of 3
-
-
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---
