INVENTORY CONTROL AND ITS IMPACT ON PROFITABILITY (A CASE STUDY OF TURNERS BUILDING PRODUCT (AREWA) LTD KADUNA)
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 N5000 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
INVENTORY CONTROL AND
ITS IMPACT ON PROFITABILITY (A CASE STUDY OF TURNERS BUILDING PRODUCT (AREWA)
LTD KADUNA)
CHAPTER ONE
INTRODUCTION
1.1 Background of
the Study
Inventory control is an extension of stores keeping and it
has been in practice for a long time. It has a wide scope of activities today.
Inventory control is an act of safe keeping some valuable items for future use
and to produce them when the need arises. Inventory control goes beyond the
scope of keeping and producing the items
only but also involves controlling of operations, receiving, quality control
activities, training of store staff, control of all store houses, stock
handling as well as clerical
documentation.
Inventory control can be defined as an art and science of
achieving the objectives of inventory in an organization. It involves planning,
organizing, staffing controlling and co-coordinating all the inventory
operational activities for the provision of efficient services. Inventory
control is a serving centre and the services to be provided must be
meticulously handled, more organized to meet the demand of all units or
department that constitute the organization for optimum performance. The
primary function of inventory control is to provide for efficient inventory and
handling of goods to be redistributed to the ultimate user, this activity when
carried out with the use of Information Technology (I.T) will make re-ordering
of materials easy as the information are already in the computer. The use of
information technology in controlling of inventory eliminates time wastages.
This provision of services to the operating function must be fully appreciated.
All other activities although they have their own relative importance are
subordinate to this primary responsibility. The above central objective can be
analyzed as follows:
i. To
make available a balance flow of raw materials components, tools, equipment and
any other item necessary to meet operational requirement.
ii. To
provide maintenance materials spare part to general stores as required.
iii. To
receive and issue work in progress and finished products.
iv. To
accept and store scraps and other material as it arises.
v. To
account for all receipt and issue of goods in the store.
Thus in any institution, private or public, some substantial
amount is spent on the acquisition of materials, equipment etc. which are kept
in the store house for future use. These items represent an equivalent amount
of cash and have to be looked after, protected against unauthorized usage,
until they are used for the intended purpose and duly accounted for.
A lot of costs are associated with keeping of inventory
despite that; we must however hold stock to meet production needs and sales
needs. This is because if we do not hold stock in sufficient quantity we stand
the risk of running out of stock and incurring all the cost associated with stock
out. Therefore, for an organization not to have the above mentioned problem it
is important that they strike a balance between carrying too much stock (over
stocking) and carrying too little stock (under stocking). The importance of
profitability cannot be overstated, because that is the reason why
organizations are in business, if inventory control is carried out properly,
there will be increase in production and sales thereby increasing profitability
for the organization.
Therefore, this study attempts to find out how inventory
control can be effectively used to reduce time wastage, theft, obsolescence and
pilferage in the organization so as to achieve their goals of profitability.
1.2 Statement of
the Problem
Empirical research has shown that the study of inventory
control or administration started late, unlike the study of other fields of
human endeavour, such as medicine, engineering, and law, accounting and public
administration to mention but few. This is not to say that it did not exist at
all but this field has not attracted people as the belief that anybody can work
in that area (inventory). Every year organization prepared and implements one
type of economic policies/budget whereby a large sum of money is spent on
acquisition of materials without making and adequate planned effort to provide
for inventory facilities. These lapses coupled with improper stock control
system and lack of trained personnel account for the ineffectiveness of
inventory function in the public and private sector.
One is baffled to see that things bought for use such as
capital equipments are left in the open during training reasons in which the
outcome is usually deteriorated materials, a waste of effort and money.
Inventory control has problems in general, especially in area
of discrepancies, theft, fraud, obsolescence, deterioration and breakages. All
these constitute a great loss to the establishment coupled with this, is also
the problem of excess stock of some items with its affendant consequences of
tying down of capital in inventory. Thefts usually occur with materials which
are small in nature but of very high value. These materials are usually stolen
because there is no proper method of control. These problems are not limited to
a single establishment rather, they are universal problems still facing many
establishment.
1.3 Objectives of
the Study
The aim of this study is to examine the impact of inventory
control on the profitability of Turners Building Product (Arewa) ltd Kaduna,
with the following specific objectives:
1) To find out
methods of operating stores in a private sector, such as Turners building
product (Arewa) Kaduna.
2) To determine
whether inventory control has help in increasing the profit of Turners
3) To advice the
company in the method adopted in inventory operations, if it is not consistent
to the existing knowledge.
4) To find out how
stock are kept in the store house.
5) To identify
factors that militates against successful implementation of stock control
system in the organization.
1.4 Significance of
the Study
The significance of inventory control in profitability covers
various aspects of the organization as a result its importance cannot be
overlooked in particular the organization of Tuners Building Product (Arewa)
Kaduna.
The significance of compiling this research is to make
researchers and historians who may need to know or get vital information about
inventory control and it impact on profitability of Turner Building Product,
and to give quick guide or easy access to the retrieval of information
The essence of this research work to the organization is to
enable them know more about what is going on in the inventory control room,
there problems and possible solution to tackle them. As a problem solving
topic, the researcher however, believes that the study will help prospective
inventory mangers to know more about this topic. It is also a requirement in
partial fulfillment for the award of Higher National Diploma in purchasing and
supply department.
1.5 Scope of the
Study
The scope is limited to all aspect of inventory control as it
affects profitability of Turners Building Product (Arewa) LTD Kaduna. The
research work covers the following
i.
What is inventory control
ii. The
importance of inventory control
iii. Control of
stock by value
iv. The Economic
Order Quantity (EOQ) model
v. Stock level
vi. Material
Requirement Planning MRP
vii. Cyclical
provisioning
The scope will be restricted to the purchasing, account and
production department of Tuners.
1.6 Research
Question
The research will be conducted base on the following
questions
1. What
inventory control system is in use in the organization?
2. Does
inventory control have any impact on profitability?
3. Does the organization keep proper
store records for inventory control?
4. Do
the organizations have adequate storage facilities?
5. What
are the factors militating against successful implementation of stock control
system in the organization?
1.7 Historical
Background of Turners Building Product (Arewa) Kaduna
Tuners Building Product (Arewa) limited Kaduna is an
associate of New Nigeria Development Company (NNDC). The company was
established in Northern part of Nigeria precisely in Kakuri Kaduna state in the
year 1965. The company was established as a depot to the mother factory at
Emene in Enugu state. It eventually came into full operation in 1972. the
company was formerly known as Turners Asbestos (North) limited but the name was
changed to Tuners Building Product (Arewa) limited in 1972 when it began its
full operation.
Turners Building Products (Arewa) limited also known as TBP
(A) limited, started its production using one factory and producing building materials
of various types these include roofing sheets made from asbestos and of
different classes namely:- Big six corrugated sheets, standard corrugated
sheets, Trafford tiles, self supporting sheets, ceiling beard popularly called
flat sheets, (4x4 and 2x2) also made from asbestos, and also they produce
interlocking stones.
The organization is made up of seven (7) departments, and
these are the general administrative, account, production, maintenance,
purchasing, audit and sales departments.
1.8 Definition of
Terms
For the purpose of this project, the following terms are
defined:
Code: a process of assigning numbers, alphabets or
combination of both for identification purpose.
Deterioration: a situation where items are becoming less of
value or worse in quality.
Identification: is the process of systematically defining and
describing all items of inventory held in the store.
Stock or inventory: are raw materials that have been
purchased for use in the operation of business semi-finished plants or partly
processed raw materials awaiting further processing, finished products that are
awaiting distribution to customers in warehouse at production site or in other
location.
Issue/dispatch: is the process of receiving demands selecting
the items required and handling them over to users.
Materials: are components, spare parts, raw materials that
are kept in the store houses.
Scrap: means materials, products or replaced parts that have
been used and no longer useful to the organization.
Receipt: is the process of accepting from all sources, all
materials equipment and parts used in the organization including supplies for
manufacturing or operating process.
Inspection: means the examination of incoming consignment for
quality and quantity.
Obsolete: materials that are out of date or use.
Obsolescence: materials that are getting out of date or use.
Stores vocabulary: is a document in which all items held in
the store are described.
Redundant: when the quantity of an item in stock is more than
is reasonably necessary to provide an adequate service to the production or
operational activity, the excess over the normal holding is said to be
redundant.
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 (#5000) 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) immediately 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.
HOW TO
IDENTIFY SCAM/FRAUD
As a result of fraud in Nigeria, people don’t believe there are
good online businesses in Nigeria.
But on
this site, we have provided “table of content and chapter one” of all our
project topics and materials in order to convince you that we have the complete
materials.
Secondly, we have provided our Bank Account on this site. Our
Bank Account contains all information about the owner of this website. For your
own security, all payment should be made in the bank.
No Fraudulent company uses Bank Account as a means of payment,
because Bank Account contains the overall information of the owner
CAUTION/WARNING
Please, DO NOT COPY any of our materials on this website
WORD-TO-WORD. These materials are to assist, direct you during your
project. Study the materials carefully and use the information in them to
develop your own new copy. Copying these materials word-to-word is CHEATING/
ILLEGAL because it affects Educational standard, and we will not be held
responsible for it. If you must copy word-to-word please do not order/buy.
That you ordered this material shows you have agreed not to copy
word-to-word.
FOR MORE
INFORMATION, CALL:
08068231953
or 08168759420
AFFILIATE
LINKS:
Comments
Post a Comment