INVENTORY CONTROL AS AN EFFECTIVE TOOL FOR COST CONTROL IN AN ORGANIZATION (A CASE STUDY OF CADBURY NIGERIA PLC.)
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INVENTORY CONTROL AS AN EFFECTIVE TOOL
FOR COST CONTROL IN AN ORGANIZATION (A CASE STUDY OF CADBURY NIGERIA PLC.)
ABSTRACT
The
topic of this research work is inventory control as an effective tool for cost
control in an organization using Cadbury Nigeria plc as a case study. Inventory
control can be defined as the implementation of management’s inventory policies
in a manner that assures that the goal of inventory management is met. The
management of various companies is faced with the problem of at what level
inventory should be held in order to have a healthy operation that is optimal
stock level that will minimize the cost of stocks the (ordering and holding
costs). The researcher objective is to know the effectiveness of inventory
control on cost control. In this course of carrying this research work various
techniques or methods of data collection were used. They include
questionnaires, interviews and observations. A sample size of 73 workers in
Cadbury Nigeria plc was also used and was chosen among the number of department/sections
of worker using Bowley’s proportional allocation formula. The researcher makes
use of three hypotheses in this study to analyze the research project. The
researcher made used of Z-test in testing the formulated hypothesis. The
researcher used the descriptive statistical tools (tables, figures and
percentages) in the presenting and analyzing the data generated from this
study. From the analysis, the researcher finds out that effective management of
inventory will help a firm to control its cost and contribute to the
actualization of a firm organizational goal. The researcher therefore
recommends that organization should apply the technique of inventory control
with the objective of cost control so as to enable the goal of profit
maximization to be attained.
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