EFFECTIVENESS OF INVENTORY MANAGEMENT IN MANUFACTURING COMPANY (A CASE STUDY OF AMA GREENFIELD BREWERIES PLC, ENUGU, NIGERIA)
ATTENTION:
BEFORE YOU READ THE CHAPTER ONE OF THE PROJECT TOPIC BELOW,
PLEASE READ THE INFORMATION BELOW.THANK YOU!
INFORMATION:
YOU CAN GET THE COMPLETE PROJECT OF THE TOPIC BELOW. THE FULL
PROJECT COSTS N5,000 ONLY. THE FULL INFORMATION ON HOW TO PAY AND GET THE
COMPLETE PROJECT IS AT THE BOTTOM OF THIS PAGE. OR YOU CAN CALL: 08068231953,
08168759420
EFFECTIVENESS OF
INVENTORY MANAGEMENT IN MANUFACTURING COMPANY (A CASE STUDY OF AMA GREENFIELD
BREWERIES PLC, ENUGU, NIGERIA)
ABSTRACT
This study examines the essence of effective inventories
control and management to manufacturing companies with particular emphasis on
Ama Greenfield Breweries plc. The aim of this study is to investigate and
ascertain areas of lapses by the company and offer effective ways and solutions
in which the manufacturing company can explore the services of inventory
management to effect its objectives. In carrying out this study, various
research instruments such as questionnaires and oral interview were used to collect
data from respondents and a research design was adopted with a sample size of
52. The statistical tool used for this work is Chi-square. Based on the
analysis, it was discovered that inventory management plays a vital role in the
manufacturing company. A well functional inventory management following the
recommendations can bring about proper management thereby enhancing proper and
effective production and it will equally ensure the effective, efficient and
adequate use of materials and resources in the manufacturing company.
TABLE OF CONTENTS
COVER PAGE- i
TITLE PAGE- ii
DEDICATION-- iv
ACKNOWLEDGEMENT- v
ABSTRACT- vi
1.0 Introduction
- - -
- - -
- -1
1.1 Background of
the study - -
- - -
-1
1.2 Statement of the
problem - -
- - -5
1.3 Objective of the
study - -
- - -
-6
1.4 Test of
hypotheses - - -
- - -
-6
1.5 Research
questions - - -
- - -
-7
1.6 Significance of
the study - -
- - -
-8
1.7 Scope of the
study - -
- - -
- -8
1.8 Limitation of
the study - - - -
- - -9
1.9 Definition of
terms - -
- - -
-9
CHAPTER TWO
2.1 Introduction
- - -
- - -
- -11
2.2 Concept of
inventory- - -
- - -
-11
2.2.1 Types of inventory- - -
- - -
- -13
2.3 Classification
of inventories - - - -
- -15
2.4 Inventory
policy- - - -
- - -
-16
2.4.1 Reasons for inventory - - -
- - -
-17
2.5 Inventory control - - -
- - -
- -19
2.5.1 Purposes of inventory control - - -
- - -21
2.6 Cost associated
with inventory - - -
- -21
2.7 Inventory model
- - - -
- - -
-25
2.8 Economic order
quantity - - -
- - -26
2.8.1 Replenishment model-
- - -
- - -28
2.9 Inventory level
- - -
- - -
- -28
2.10 Inventory valuation method - -
- - -
-30
2.11 Inventory Accounting System - - -
- - -33
2.12 Stock taking methods-
- - -
- - -34
References -
- - -
- - -
- -35 CHAPTER THREE
RESEARCH METHODOLOGY
3.0 Introduction
- - -
- - -
- -36
3.1 Research design
- - - -
- - -
-36
3.2 Area of the
study - - - -
- - -
-36
3.3 Population of
the study- - - -
- - -37
3.4 Determination of
the sample size and technique- - -37
3.5 Sources of data
- - - -
- - -
-40
3.6 Method of data
analysis - - - -
- - -40
3.7 Validity of the
test - - -
- - -
-41
3.8 Reliability of
the test - - -
- - -
-41
CHAPTER FOUR
DATA PRESENTATION AND ANALYSIS - - -
-
4.0 Introduction
- - -
- - -
- -43
4.1 Presentation of
data- - -
- - -
-43
4.2 Analysis of
data - - - -
- - -
-44
4.3 Test of
hypothesis - - -
- - -
-54 CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATION
5.1 Summary of
findings- - -
- - -
-58
5.2 Conclusion-
- - -
- - -
- -61
5.3 Recommendation -
- - -
- - -
-62
Bibliography - - -
- - -
- -65
Appendix- - - -
- - -
- -68
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF
THE STUDY
Inventory is one of
the resources that are managed by business organizations and it was first
recorded in 1601. The need for inventory control cannot be overemphasized as it
is a means for improving the performance of manufacturing industries. Inventory
can be defined as a record of a business current assets including property
owned, merchandise on hand and the value of work in progress and work complete
but not sold and it is classified as a
current asset because it can be turned into liquid cash within a short period
of time. Inventory has created a great impact on the profitability of the
manufacturing firm which resulted to the deep research of this topic.
Effectiveness of inventory management in a manufacturing company.
Inventory plays a
major role in the operation of many businesses and manufacturing companies. In
manufacturing, inventories of raw materials allow companies to operate
independently of their sources of supplies. Day to day operation are not
dependent on deliveries from supplies since stock of the necessary materials
are maintained and used s needed. Without inventory control, millions of naira
could be lost year because of non-accountability of stocks and inaccurate
checks and balances.
The
process of control and management of inventory is a very important factor in
the success or failure of any business for example, little stock will result in
stock out which will disrupt the production distribution cycle that is crucial
to the survival of all manufacturing companies while too much stock will tie
down the resources of a company. Poor or inadequate inventory management can
present a serious challenge to the productive capacity of a manufacturing
organization. In addition to raw materials and finished goods, many companies
also maintain items of assets, property, inventories of work in progress,
office supplies, business firms and general operation supplies.
Inventories often
constitutes the most significant part of current assets of large companies. In
the public limited companies, inventories are approximately 60% of current
assets on the average. The US Burean of the census stated that inventory and
accounts receivable ate the two largest accounts of equal magnitude and
together they comprise almost 80% of current assets and over 30% of total
assets for all manufacturing companies in 1982.
Considering the large
sum of money that are committed to the stocks of raw materials, work in progress and finished goods, it is therefore of paramount necessity that
these stocks be managed efficiently and effectively in order to avoid the
jeopardizing of the profit position of
the firm.
In inventory, there is
an optimum level therefore inadequate inventory causes loss of sale and
disrupts the production process while excessive stock level leads to
unnecessary carrying cost and obsolescence or spoilage risks. According to
Charles T. Horngren (2007), the optimum inventory. Level lies between the
inadequate inventories and the excessive inventories. Inventory management aims
at maintaining an optimum inventory level that will be
carried at the least cost.
A BRIEF HISTORY OF AMA GREENFIELD BREWERY IN ENUGU STATE,
NIGERIA
Ama Greenfield Brewery
is the jewell in the crown of Nigeria Breweries Plc and is reputed as one of
the most modern Breweries. Precisely on Friday October 24, 2003, the much
talked about Nigeria Breweries Plc’s ultra modern Ama Greenfield Brewery
located in Enugu state was officially commissioned. It is Nigeria breweries Plc
company’s sixth Brewery and the second to be located in Enugu state. The
multi-billion naira Ama Brewery boasts of the best cutting edge technology and
world class standard processes. It is
located in Umuezeani village in the Amaeke Ngwo community of Udi Local
Government Area of Enugu state. Mr. Lassy Agose who was the public relations
adviser to the Nigeria Breweries Plc at
that time said that Ama Greenfield Brewery has an installed capacity of 3
million hectoliters per annum or 1 million carton units per week adding that it
was also equipped with an ultra modern waste water treatment plant in l ine
with safe manufacturing practices world-wide. Ama Brewery whose foundation was
laid on April 9,2001 by the then Enugu state Governor, Dr Chimaroke Nnamani
took 14 months to be completed after the actual construction work commenced on
January 23, 2002. The first brew was made on March 22nd,
2003 while the first bottle of star larger rolled off the
bottling line on April 24, 2003.
Ama Greenfield Brewery
encapsulates the essential ingredients of the world class vision of the Nigeria
Breweries plc and represents another milestone in the company’s journey towards
the realization of that vision. Beyond these, Ama Brewery holds enormous
socio-economic benefits to the community, state and country at large.
In addition to opening up the communities to commerce and modernization,
the state stands to benefit from increased revenue and the building of
international confidence for investment. This multibillion naira investment is
also expected to translate into enhanced employment, as well as open the flood
gates of business activities and opportunities in the economy, Mr. Agose stated
during a pre-commissioning press briefing in Lagos. Constructed at a cost of
N40 billion, it is an essential fulfillment of the pledge made by Heineken NV
to invest N70 billion in Nigeria within five years building an ultra-modern
civic centre, a borehole and market stalls for the area.
1.2 STATEMENT OF THE
PROBLEM
The problems
seen in the course of this study are as follows:-
i.
Ineffective management of inventory in the manufacturing company
specifically Ama Greenfield Breweries.
ii.
Loss of sales or business of the company as a result of insufficient
inventories of finished goods.
iii. Low
productivity in the manufacturing company as a result of poor inventories model
used by the company iv.Poor management
and control of inventories in the manufacturing company.
1.3 OBJECTIVE OF THE
STUDY
The major objective of
this study is to determine of the effectiveness of inventory management in a
manufacturing company. The specific
objectives of this study are as follows:-
i. To
determine to what extent the ineffective management of inventory in Ama
Breweries plc has caused low productivity in the company.
ii. To
examine the extent to which insufficient inventory of finished goods cause loss
of sales to the company.
iii. To
identify the degree to which poor inventory modern used by the company has
resulted to low productivity in the company.
iv. To
ascertain whether the company has suffered from poor
management and control of inventories.
1.4 TEST OF
HYPOTHESES
Based on the problems
and objectives of this study, the following hypotheses are formulated for this
research.
Ho: There is no significant relationship between low
productivity and poor inventories management.
H1: There is a significant relationship between low
productivity and poor inventories management.
Ho: There is no significant relationship between proper
inventory policies and productivity in a manufacturing company.
H2: There is a significant relationship between proper
inventory policies and productivity in a manufacturing company.
1.5 RESEARCH
QUESTIONS
For the purpose of this
research study, the following research questions were formulated:
1. Does
effective inventory control ensure continuous production of goods in Ama
Breweries?
2. What
is the state of inventory management in the Nigerian manufacturing company
especially Ama Breweries plc?
3. Has
effective inventory control made a significant impact on the manufacturing
company?
1.6 SIGNIFICANCE OF
THE STUDY
The significance of
this study lies on the fact that with improved inventory control and management
in manufacturing companies, the following persons may benefit from it:
It will be significant
to manufacturing companies, firms and businesses as it will enable them keep an
adequate inventory control and ensure that they do not run out of stock or have
excess stock which can endanger their liquidity position. It will also help to
meet consumer’s demands or quest. It is also important to the government as it
will help to reduce waste of investment inventory. It will also help lecturers
to really know the importance of inventory control so that they will be able to
impact it on their students. This study will also reveal the relevant methods
to be used in preventing mismanagement; it will also improve stock control
which has led to the mismanagement and unproductively of materials.
1.7 SCOPE OF THE
STUDY
This research work on
the effectiveness of inventory management in a manufacturing company is focused
on Ama Greenfield Breweries plc in
Enugu state.
1.8 LIMITATIONS OF
THE STUDY
Some limitations
and factors in this research study are as follows:-
i.
The time required for the research and the submission of this work is
very short and the researcher was unable to go through all manufacturing
companies.
ii.
Financial constraints:-Finance which is the most important
resource for this work was not readily available.
iii.
Limited exeat:-Due to the fact that exeat is very difficult to get in
school, proper research was not carried out and this affected the integrity of
the results achieved.
iv.
Unco-operative attitudes of some of my respondents:- The management of
Ama Breweries prohibited its employees from giving out information about the
company to outsiders without adequate permission from the management and even
when this permission was obtained at the long run, many vital information were
not revealed because they were regarded as the privacy of the company.
1.9 DEFINITION OF
TERMS
INVENTORY: This is a record of a business’ current assets. It
can also be described as the merchandise or supplies held or in transit at a
particular point in time.
HOW TO GET THE FULL PROJECT WORK
PLEASE, print the following instructions and information if you
will like to order/buy our complete written material(s).
HOW TO RECEIVE PROJECT MATERIAL(S)
After paying the appropriate amount (#5,000) into our bank Account
below, send the following information to
08068231953 or 08168759420
(1) Your project topics
(2) Email Address
(3) Payment Name
(4) Teller Number
We will send your material(s) after we receive bank alert
BANK ACCOUNTS
Account Name: AMUTAH DANIEL CHUKWUDI
Account Number: 0046579864
Bank: GTBank.
OR
Account Name: AMUTAH DANIEL CHUKWUDI
Account Number: 2023350498
Bank: UBA.
FOR MORE INFORMATION, CALL:
08068231953 or 08168759420
AFFILIATE LINKS:
myeasyproject.com.ng
easyprojectmaterials.com
easyprojectmaterials.net.ng
easyprojectsmaterials.net.ng
easyprojectsmaterial.net.ng
easyprojectmaterial.net.ng
projectmaterials.com.ng
googleprojectsng.blogspot.com
myprojectsng.blogspot.com.ng
https://projectmaterialsng.blogspot.com.ng/
Comments
Post a Comment