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MANAGEMENT AND CONTROL OF INVENTORY IN A MANUFACTURING ORGANISATION.

(A case study of S. I. O. and ALLIED INDUSTRIES LTD ASABA)

 

   

   ABSTRACT

The purpose of  this study is to examine the effectiveness of inventory control in manufacturing industries with particular reference to S. I. O. Industry Ltd Asaba.

Due to the unprecedented growth in manufacturing and merchandising industries over the years, inventory has been accorded the save Center of those industries. It therefore follows that in trying to hold the industries in these should be adequately and properly controlled with a view to minimizing costs.

Hence, in conducting research, the researcher made use of Oral interview and questionnaire; she also reviewed other related literatures necessary to provide the required data for the study. The data collected for the study were analyzed in tables using Chi Squares.

The findings were that through the management hires as much as the can, there are lapses in the inventory Control System also in the valuation of stock, the researcher found out that the company uses the first – in – first – out (FIFO) method of stock valuation in valuing her stock.

This is because of inherent benefits in it and commended by the SAS, IAS and SSAP.

Based on findings, we have recommended among other things that the local source of ratio materials should be made to supply the firm when required.

 

     CHAPTER ONE

    BACKGROUND OF THE STUDY

 

SIO AGRO and ALLIED INDUSTRIES LIMITED is a processing industry involved in agricultural and similar products processing. The industry went into production in 1980 with fire board members. It is situated in the North East of Asaba Delta State. It has a total staff of 120 as at the end of july 1994.

SIO AGRO and ALLIED INDUSTRIES LIMITED commenced business with total capital of SIO AGRO and ALLIED INDUSTRIES has risen to N150, million in cash and assets. In purshance of its social responsibility SIO AGRO and allied industries as at the end of july 1996 has a total staff of 200. This large number of employees is necessary following the diversification of its products.

The management of the company is unbureautically.

This flexibility in management style give the organization a great deal of specialization.

In this method, Certain amount of rigidity is discourage, this stem creates room for dynamic of employees and lower cost of control and management.