EVALUATION OF USEFULNESS OF INVENTORY MANAGEMENT

ABSTRACT

 It has been generally accepted that for any organization to produce and satisfy its stakeholders, such organization must have good management team that manages the resources of the organization using some laid down rules. In manufacturing concerns, inventories constitute a greater proportion of assets. The management of inventories usually involves a lot of problems which range from the right tome to place order to maximization of profits for the stakeholders. Thus, the research undertaken this research work entitled. Evaluation of usefulness of inventory management. A study of some selected Beverage Companies including: Coca-Cola Nigeria Plc, Pepsicola Nigeria Plc and Nigeria Mineral Water Industries Limited.

The objective of this work includes: To determine whether profit is maximized and cost minimized due to the application of the efficient inventory management. To determine also whether manufacturing concerns in our country manage inventories effectively by using inventory management techniques e.g. Economic Lot Size, Just-in-Time etc.

Data were collected using questionnaire method, and were analyzed using chi-square (X2) Pearson product moment, correlation co-efficient (r) and regression analysis.

The result therefore shows that they place order at the right time and right quantity overcoming the setbacks of lead time. The companies also minimize costs of holding inventories and maximize their profits. The findings showed that manufacturing concerns in Nigeria meet the target requirement of their customers, stakeholders, and the society where they operate.

The research recommends that: all staff of the manufacturing concerns should be made to have the thorough knowledge of inventory management as this will enable them to work towards their stock protection and cost minimization. The manufacturing concerns should get the recent developed software on inventory management and use to update their knowledge of inventory management on regular bases.

CHAPTER ONE

1.1       INTRODUCTION

Every Organization has to its own purpose of operation. The level of actualizing the objectives or goals determines how efficient and effective that organization is. But for the goals of any organization to be achieved, such entity must observe some stipulated or laid down principles for its effective performance. When these rules are followed simultaneously, then the usefulness of such principles or concepts will be achieved.

In general term, management has been recognized as that which plans, direct and as well control the effective use of organizational resources to achieve its objective.

Akpala (1987) as in Onuoha (1991:4-5) defines management as the process of combining and utilizing or of allocation of organization’s input (men, materials and money) by planning, organizing, directing and controlling for the purpose of producing output (goods and services) desired by the customers so that the organizational objectives / goals are accomplished.

In evaluating a topic as this, one ma start by analyzing the key words in it, such as usefulness, inventory, and management as they relate to the manufacturing concerns.

Something is said to be useful when it is achieving the best objective, purpose aim or goal of its wage. And also when using the laid down rules and resources available, achieves the best desired goals without wasting the available resources.

According to Ama (2001:470), inventory is the stock o goods a firm is producing for sale and the component that make up the goods.