TABLE OF CONTENTS
TITLE PAGE
PAGES
CERTIFICATION
I
DEDICATION
II
ACKNOWLEDGEMENT
III
LIST OF TABLE
IV
CHAPTER ONE
BACKGROUND OF THE STUDY 1
STATEMENT OF THE PROBLEM 2
AIMS AND OBJECTIVE 3
SIGNIFICANCE OF THE STUDY
4
SCOPE AND LIMITATION OF THE STUDY 6
RESEARCH METHODOLOGY
8
THE HYPOTHESIS OF THE STUDY
8
ORGANIZATION AND PLANS OF THE STUDY 9
CHAPTER TWO
2.O LITERATURE
REVIEW11
2.1 INVENTORY
CONTROL DEFINITION AND TYPES 11
2.2 IMPORTANCE OF
INVENTORY CONTROL 12
2.3 MATERIAL
PURCHASE
12
2.4 MATERIAL
STORAGE
13
2.5 CENTRALIZATION
OF MATERIAL STORAGE 13
2.6 INVENTORY
VALUATION METHOD (MATERIAL PRICING) 14
2.7 STOCK
TAKING
16
2.8 BRIEF HISTORY
OF THE ORGANIZATION
17
2.9
COMPUTERIZATION OF NBC PLC
18
2.10 CALCULATING THE
ECONOMIC ORDERING QUANTITY (EOQ)
` 19
CHAPTER THREE
3.0
INTRODUCTION
24
3.1 RESEARCH
DESIGN
25
3.2 POPULATION OF
THE STUDY24
3.3 SAMPLE SIZE24
3.4 SOURCE OF DATA
AND DATA COLLECTION INSTRUMENT25
3.5 QUESTIONNAIRE
BASIC ASSUMPTION 26
3.6 STATISTICAL
TECHNIQUES/TOOLS 26
3.7 PROFILE OF THE
CASE STUDY
26
CHAPTER FOUR
4.0 DATA ANALYSIS
AND PRESENTATION
28
4.1 INTRODUCTION
28
4.2
CHARACTERIOSTICS OF RESPONDENT ANALYSIS 28
4.3 THE HYPOTHESIS
RESULT
33
4.4 DISCUSSION OF
FINDINGS
34
CHAPTER FIVE
5.0 SUMMARY OF
INDINGS, CONCLUSSION AND RECOMMENDATION
37
5.1 SUMMARY OF
FINDINGS
37
5.2
CONCLUSSION
38
5.3
RECOMMENDATION
38
BIBLIOGRAPHY
40
QUESTIONNAIRE
41
CHAPTER ONE
1.1 BACKGROUD OF
THE STUDY
A major
problem facing the stock control has affected the growth of business or company
is the determination of an economic order quantity that will minimize total
inventory cost. The purchasing department only orders the amount needed to
attain the maximum stock level whenever stock reaches or fall below the minimum
stock level. While the company fails to realize that the minimum level does not
have to be attained always, it has cost implications whenever stock falls below
minimum level, ordering cost per unit decreases as quantity increases, however,
there will be an increase in carrying cost. Hence, total cost is not minimized
whenever the quantity order is greater than the optimum required that is the
economic order quantity.
The company
is faced with the problem of delayed with regards to local supplies of its
production materials such as sugar, and water bottle soften carbon(iv)oxide02.
even though local supplies constitute only 28% of the total production material
used in most cases, supplies fail to meet the delivery date upon because they
do not know the exact materials required and yet will not admit ignorance. The
high value part of the materials on the one hand and the financial inability on
the part of suppliers initially may not realize the huge amount of capital
involved with the result that they will not supply at all and fail to inform the company of their
inability to supply.
Consequently, the company incurs cost in sending remainders and in
cancellation of orders prompt delivery of production material is of primary
concern to management.
Delay in the
delivery of these materials will lead to the increment of enormous cost by the
company.
1.2 STATEMENT OF
THE PROBLEM
The
importance of stock in any organization can be over emphasized and its control
must be accorded a great attention so as to minimize some of the problems
associated with inventory control. Some of these problems are:
inventory valuation method are many
There are improper record keeping
The supply of raw material by contractors is ineffective
No policy regarding minimum and maximum stock levels
determination
The company adopts manual
inventory control system
The bi-annual stock taking is not enough for effective
control.
B. PROBLEM OF
STOCK MANAGEMENT DUE TO INEFFECTIVE STOCK CONTROLL SYSTEM
For accurate
pricing of stock, these has to be an effective means of recording the movement
of stock. This is to say that the recording must be up to date regarding materials
prices. The following are major problem of stock management due to ineffective
stock control system.
Material are brought at different prices
These material becomes unidentifiable from other undesirable
from costing point of view
Profit calculation is affected by the pricing method adopted
by an organization, particularly where materials from a large of raw material
due to suppliers cause problem of stock inefficiency management
Storage: material like concentrates chemical require fully
air conditioned, very cold room
Ineffective supply of raw material due to suppliers cause
problem of stock inefficiency management.
Capital tied down due to ineffective control system
Quality of materials; there may be available found but in
absence of materials of the desired quantity for graded materials, problems
ensure.
1.3 AIMS AND
OBJECTIVE OF THE STUDY
Inventory
forms a large proportion of any firms working capital and therefore, there is
need for effective control by management which is like major objective of this study on inventory control
system
To have a general critical review of managing problems
arising from stock control of the soft
drinks industry
The Bi – annual stock taking adopted by NBC plc to be used
as a case study industry.
Ways of correcting faulty valuation method and at the same
time determine the suitable stock valuation method for the particular
circumstances of soft drink companies Nigeria
To check the problem of determining the E.O.Q
To suggest appropriate policy regarding determination of
maximum and minimum stock levels.
To look at possible means of bringing to minimum the huge
expenditure on stock control
The effective management of available funds will be the
result of effective stock control system
Management information system (MIS) to enhance control
system on introduction of computer
Clerical operations account for inefficiencies in management
control on inventory
To look at the ways of making maximum and effective use of
the seemingly washing human resources who are not fully utilized in management
control system of stock other implement to efficiency of stock management in
organization which with equally draw attention in this study include
Fraud and misappropriation of stock balance (quality) and of
pricing (price)