THE NEED FOR EFFICIENT STOCK MANAGEMENT IN THE MANUFACTURING COMPANY (A CASE STUDY OF ANAMBRA AUTOMOBILE MANUFACTURING COMPANY, EMENE ENUGU)

THE NEED FOR EFFICIENT STOCK MANAGEMENT IN THE MANUFACTURING COMPANY (A CASE STUDY OF ANAMBRA AUTOMOBILE MANUFACTURING COMPANY, EMENE ENU GU)

ABSTRACT

TOPIC: The need for efficient stock management in a manufacturing company. A case study of Anambra Automobile manufacturing company (ANAMMCO) Emene Enugu State.

The efficient stock management of available resources as a pre-requisite to a stable and healthy growth of every company, this is a foundation for survival of the company in a competitive market. And for this is to be achieved, eventually is one of the resources concerned the management of various company are always in a dilemma as far as this stock management is concerned. The problem then is whether to wild stock  too low or too high, too large or too little, any of the alternatives affects the profitability of the company.

Therefore the problem of inventory management revolves around the determination of or maintaining an optimal level of inventory. The optimal stock varies from one company to anther depending on the nature and volume of operation. This problem prompted the researcher into stock management in a manufacturing company.

The study is designed to study how effectively country is being managed in the company and to find out the likely consequences of over-stocking and under-stocking. The study is also to examine the factors that influence the stock of raw materials in the company.

This research work will be carried out in three departments of the company. They are production, accounts and store departments.

To really determine the effectiveness of inventory management in the company the researcher employed both primary and secondary method of data collection. The primary data involves oral/personal method of investigation and questionnaires, while secondary data involves data extracted from text books, past projects and journals. Some major finding shows that over investment and under investment has adverse effects on the company and therefore affects the profit earning of the company.

Then from the results of the analysis other findings were obtained and recommendation and conclusion were also reached.

CHAPTER ONE

1.0       INTRODUCTION

1.2       BACKGROUND OF THE STUDY

            In this study, inventories constitute the most significant part of current assets of a large majority of companies, for example current asset in public limited companies, industries such as the plantation, edible vegetable, and hydrogerated oil, sugar, tobacco cotton, Jute and woolen textiles, non-ferrous metals (other than Aluminum) transport equipment and foundries and engineering workshops. Inventories form more than 60% of current assets while it accounts for only 30% and below the printing and publishing electricity generation, supply, trading and shopping industries.

Inventories are the stocks of the product a company is manufacturing for sales and component that make the products. The various component of stock are raw materials, Work In Progress (WIP) and finished goods. Raw materials are those basic input materials that are converted into finished good through the manufacturing process.

Raw materials stock are those units of input which have been purchased and stored for future productions.

Work-in-progress stocks are semi manufactured products. They become finished goods, inventories are those completely manufactured products which are ready for sale stocks of raw materials and work-in-progress facilitate production while stock of finished goods is required for smooth marketing operations.

THE NEED FOR EFFICIENT STOCK MANAGEMENT IN THE MANUFACTURING COMPANY (A CASE STUDY OF ANAMBRA AUTOMOBILE MANUFACTURING COMPANY, EMENE ENUGU)