TABLE OF
CONTENTS
TITLE PAGE II
APPROVAL
III
DEDICATION
IV
ACKNOWLEDGEMENT V
TABLE OF CONTENTS
VI
LIST OF ILLUSTRATIONS/TABLES
CHAPTER ONE:
1.1
INTRODUCTION
1
1.2
THE STATEMENT OF THE PROBLEM 1
1.3
THE NEED FOR THE STUDY 3
1.4
THE PURPOSE OF THE STUDY 5
1.5
RESEARCH HYPOTHESIS 5
1.6
THE SCOPE OF THE STUDY 6
1.7
RESEARCH METHODOLOGY 6
1.8
LIMITATION OF THE STUDY 7
1.9
ORGANIZATION OF THE STUDY 8
1.10
OPERATIONAL DEFINITION OF TERMS 9
CHAPTER TWO:
2.0
INVENTORY CONTROL AND INVENTORY VALUATION12
2.1
NATURE OF INVENTORY 12
2.2
INVENTORY CONTROL 16
2.3
ACQUISITION AND ISSUE OF MATERIALS 40
2.4
BASIC INVENTORY CONTROL SYSTEMS 43
2.5
FACTORS THAT AFFECT INVENTORY CONTROL
SYSTEMS 49
2.6
INVENTORY CONTROL METHODS 49
2.7
INVENTORY VALUATION SYSTEMS
2.8
INVENTORY VALUATION METHODS 53
2.9
FACTORS AFFECTING INVENTORY VALUATION DECISIONS
57
2.10
THE CONCEPT OF VIABILITY 60
CHAPTER THREE
3.1
SELECTION OF DATA 62
3.2
COLLECTION OF DATA 64
3.3
TOOLS OF DATA ANALYSIS 66
3.4
RELIABILITY OF DATA 67
CHAPTER FOUR: DATA PRESENTATION ANALYSIS
4.1
DATA PRESENTATION AND ANALYSIS 68
4.2
HYPOTHESIS TESTING 86
CHAPTER FIVE:
SUMMARY, CONCLUSION AND RECOMMENDATION
5.1
SUMMARY
100
5.2
CONCLUSION
101
5.3
RECOMMENDATION
102
BIBLIOGRAPHY
107
APPENDICES
109
CHAPTER ONE
1.1
INTRODUCTION:
The viability of an organization ca be
enhanced through an effective and efficient management of material
resources. Inventory control is a
notable measure in managing material resources.
Management of resources covers every action taken from the procurement
of the resources to their disposal.
Firms take certain measures towards preventing their stocks from being
in shortage, pilferage and waste some of the measures are very effective while
other are not.
In consideration of the scarcity raw
materials, their exorbitant costs of procurement and management in the present
prevailing economic condition, if is imperative for firms to do away with the
rule of thumb’ approach of inventory control and adopt the scientific approach. It is on the basis of this that the need for
this study lies.
1.2
THE STATEMENT OF THE PROBLEM
The goal cot every business entity is to
maximize wealth. Wealth maximization is
achieved when the interest of the shareholders are met. The interest of the shareholders can be met only
when the business entity makes profit.
Profit is said to have been made when the total revenue exceeds the
total cost and expenses incurred. Effect
five inventory controls are important factors in keeping the total cost of
maintaining inventories at a minimum and help to increase return on the
investment.
Many organizations do not adequately control
their inventory making it possible for losses [through shortage of stock
pilferage, waste of materials etc.) to pas unnoticed. The stores department is often neglected
equivalent amount of (illiquid) cash.
Unplanned flaw of materials is determined to
efficient operation. Production stoppages resulting from stock out have
innumerable negative effects (costs).
They lead to loss of man-hour, disappointment of customers and possible
loss of goodwill.
Few manufacturing firms use scientific
approach of inventory control. Many fall back on the rule of thumb. This is reasonably inaccurate. It leads in to over-stocking or under stocking
over stocking entails incurring high storage spaccs and stock loss
On the other hand, under-stocking may result
to panic buying and diction delay and loss of sales revenue which gives rises
to be of profit and goodwill or even penalty payment where there is a conduct
to maintain regular supplies.
Stock losses could occur when inventories are
not properly accounted for. This may be
due to type of inventory system used, the method of valuation of unused of
unsold inventories at the end of valuation period and the managerial efficiency
in adopting an acceptable
inventory. Control when most required.
This study will look in to the nature and
external of solving their problem.
1.3
THE NEED FOR THE STUDY,
Many companies are making looses while others
are winding up. These gives rises to the
people through that, there is inability to manage resources effectively in
Nigeria. This is because these things
are happening in the midst of abundant resources Ringin viewing as above stated
that prudent management for our financial, materials and human