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THE NEED FOR EFFICIENT INVENTORY MANAGEMENT IN A MANUFACTURING COMPANY

(A CASE STUDY OF NIGERIA BOTTLING COMPANY N.B.C ENUGU STATE)

 

 ABSTRACT

 

As the topic state that is “the need for efficient inventory management in a manufacturing company”.

One major component of this cost in many manufacturing organization that desires the attention of management is the investment in inventories otherwise know as stock. One will then say that really manufacturies companies face inventory management problem of what the researcher tried to analyse and bring possible solution to that effect.

The problem associated with inventory management are unavailability of raw material. The determination of optimal level of stock as well as the discrepancy between policy and practice in stock management.

In carrying out the research work, some research questions were asked such as:

  1. Does inventory planning involve the determination of such factors as market demand and plant capacity?
  2. Does the company make policy decision about stock management?
  3. What benefit are derived from maintaining inventory at their level?

The simple random sampling techniques were used and the methods of data collection used were oral interview company.

Journal textbook and questionnaire which were mostly structured the deportment act as source of data for planning and controlling of more our from the analysis of data gathered was revealed that the company make decision about stock management and also that stock can be allowed to leave the store without requisition being made for it in order to meet up with emergency.

Based on the above analysis carried out, it was also gathered that inadequate information flows rapid inflationary pressure as well as organized storage system are factors that militating against efficient inventory management in the company.

Economic order quantity stock budget minimum stock level are used as means of controlling stock.

The research writer recommends that thee company should set up information flow above inventory management and organize a perfect storage system for the stock.

In order to guide against inflation, market price of valuing inventory is recommended there should be optimum stock level to avoid or over stocking

 

CHAPTER ONE

INTRODUCTION

 

The objective of most business include survived and growth fulfillment of social responsibility and realization of satisfactory profit.

This level of return enables company to have advantage of business opportunities undertake research and innovation which further make for growth and survival in the long run discharge its social responsibilities and its obligations to the owners.

In order to maintain this status quo, it becomes imperative that positive attempt must be made to minimize the operational cost of the business increase production and boost the face of these products.

 

 

 



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