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EFFECTIVENESS
OF INVENTORY MANAGEMENT IN A MANUFACTURING COMPANY
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
Title page - - - - -
- - - -i
Approval page- - - -
- - - - -ii
Dedication - - - - -
- - - - -iii
Acknowledgement - - -
- - - - -iv
Abstract - - - - - -
- - -v
Table of contents - -
- - - - - -vi
CHAPTER ONE
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.
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