AN OVERVIEW OF INVENTORY CONTROL IN AN ORGANIZATION (FOCUS ON NIGERIA BOTTLING COMPANY PLC LAGOS STATE)
TABLE OF CONTENT
Title page
Approval page
Dedication
Acknowledgement
Table of contents
Abstract
CHAPTER ONE
1.0
INTRODUCTION
1.1
Background
of the study
1.2
Statement
of the problem
1.3
Purpose
or significance of the study
1.4
Research
question
1.5
Objective
of the study
1.6
Significance
of the study
1.7
Scope
of the study
1.8
Limitation
of the study
1.9
Definition
of terms
CHAPTER TWO
2.0
LITERATURE
REVIEW
2.1
Introduction
2.2
Definition of the concept
2.3
Concepts
Associated with inventory control
2.4
Importance
of inventory control
2.5
Aims
of the stock taking and stock checking
2.6
Inventory
control techniques
2.7
Perpetual
inventory method
2.8
Periodic
inventory method
2.9
Simple
inventory model
2.10 Inventory model
2.11 Functions of inventory control
2.12 Planning for inventories
2.13 Classification of inventory control
2.14 Importance of an Accurate valuation
of inventory control
2.15 Estimating inventory by the retail
inventory methods
2.16 Inventory shortage
2.17 Summary
CHAPTER THREE
3.0 RESEARCH
METHODOLOGY
3.1 Research
design
3.2 Population
3.3 Sample
size
3.4 Research
Instruments
3.5 Reliability
of the Instrument
3.6 Validity
of the research instrument
3.7 Administration
of the instrument
3.8 Data
collection and analysis
CHAPTER FOUR
4.1
Introduction
4.2
Data
presentation and analysis
4.3
Summary
of finding
CHAPTER FIVE
SUMMARY, CONCLUSION AND
RECOMMENDATION
5.1
Summary
5.2
Conclusion
5.3
Recommendation
5.4
Suggestion
for further studies
Bibliography
Appendix I Research Proposal
Appendix II Respondents letter
Appendix III Research questions
Appendix IV Organizational chart
ABSTRACT
This
project work contain deals with instruction of an overview of inventory control
in manufacturing company, it also include the aim and objective of study and
scope of study. Then the profit of Nigeria
bottling company plc and its administration were highlighted. The final summarizes the whole and deductible
recommendation, which we think will be advantageous, to the management of
Nigeria Bottling company plc and other manufacturing company’s.
CHAPTER ONE
INTRODUCTION
1.1
Background of the study
In a
manufacturing organization, the need for inventory control is very necessary
because it helps the organization to verify the accuracy of stock records with
physical stock (records) that is, (materials in the stock) among the numerous
purpose of the exercise.
Moreover,
inventory control, it deals with identification of every inventor in the store,
that is, the process of systematically defining all items in the stock.
Stock taking
and inventory are interrelated concept in store management. The management need to ensure that at any
point in time the capital of the business is not necessarily tied down in form
of materials in the store that will provide an opportunity for management need
to put at minimal rate, stock looses which emanate from store operation. However, there is no way of achieving these
two objectives without a proper stock taking on the stock items as well as
infusion of strong and effective inventory control into the functioning of the
established store system.
Since stock
represents cash assets of the organization, it should be looked after carefully
and well protected, therefore in business, stock is of paramount importance.
In the
manufacturing business, availability of raw materials stock items guarantee
continuity of production plans and level.
This will help the organization to be able to capture in meeting the
customer demand.
However all
these can only be achieve if there is an effective control in stock taking.
Also at the
end of each financial year weather in the public or private sector, there is
need to value the closing stock for inclusion in the balance sheet to ensure
accurate figure of stock items, there must be an effective stock control and
stock taking.
It also
involves provision process, which indicates instruction given for the placing
order usually production department takes a large store in provision in
manufacturing organization.
The inventory
in the store as to be control and concluded by several business authority as to
corporate balance sheet, commonly constitute from 20 to 25 percentage invested
capital.
Therefore, it
should be adequately take care off, because this has to do with profit of the
organization.
1.2
Statement of the Problem
The statement
of the problem of inventory control on the production process, sales and
development of the company cannot be under estimated die to the reason of
finished product must have undergone some process before it appears as finished
goods. It is therefore, inventory
control system that helps the establishment, or the organization to control and
co-ordinate the available materials effectively and efficiently.
There is no
doubt that without a positive effective of inventory control system in the
organization will find it very difficult to control the available raw materials
that are in the store.
1.3
Purpose of the study
The purpose
of the study is to:
1)
To
meet the demand from indentors or users.
2)
Sufficient
inventory should be maintained neither excessive or inadequate.
3)
There
is need for the firm to determine the optimum level of inventory control.
4)
To
ensures proper execution of polices covering procurement and use of materials.
5)
To
work as a check on the over accumulation of inventories and minimum investment
consistent with production requirement.
6)
To
eliminates delays in production caused by non – availability of required
materials.
1.4
Research Question
The research
question will reflect in the following ways.
1)
What
is the contribution of your store personnel to the storage condition of the
organization?
2)
Does
your organization benefit in the innovation of the sophisticated method of stock
taking?
3)
Do
you arrange your stores according to their sizes to enhance easy counting?
4)
Is
there any relationship between your store department and others?
1.5
Objective of the study
The following
are the objectives of the study:
1)
To
bring out the importance of inventory management to the survival of an organization
to the individual and to every department.
2)
To
identify problems of Nigerian Bottling company plc on inventory management and
to offer suitable suggestions.
3)
To
enable the firm to give more recognition on inventory control.
4)
To
review the problems of inventory control in Nigeria
bottling company plc Ibadan
with critical examinational and appraised.
1.6
Significance of he study
One of the
most crucial objective of any organization is to conduct a systematic
collection, classification and analysis of data basis for better stock taking
decision.
At the end of
the project the researcher will be able to suggest solutions to the problems
encountered in the stock taking decision and its effectiveness on inventory
control in an organization.
Indeed, the
significance of this project will enable the researcher to offer positive
alternative solution to the problems of financial instability.
1.7
Scope of the study
All the
research work as for as this project is concerned will be limited to Nigeria
Bottling company plc Ibadan. The scope of the study will only cover an
overview of inventory control in an organization. The project will elaborated on world
inventory control in general.
1.8
Limitation of the study
In carrying
out this research project, there were constraints, which are numerous, if they
were not encountered, the beauty of this project could have been more than
this, some of the limitations are:
The period in
which the project is being carried out was short. This was carried out at a high time towards
the end of the academic session when the examination was fast approaching which
create some impediments at the place of the research and more useful
information to complement the project could not be obtained.
1.9
Definition of terms
Some key
words used in common in this project research topic are:
1)
Stocks: These are quantities of physical
items of materials that are kept in the store.
2)
Inventory: This is the list of every item or
materials that are kept in the store.
3)
The Ordering Stock Level: This is the amount expressed in
units of issue at which or ordering action is indicated on time for the
materials to be delivered before stock fall below the minimum.
4)
Stock Taking: This is the process of physical
verification of the quantities and condition of goods.
5)
Receipt: Receipt is the process for
accepting form all sources, all materials, equipment and part used in the
organization.
6)
Raw Materials: These are basic materials, which
undergo changes through manufacturing process in the course of being
incorporated into the finished products.
7)
Work in Progress: These material comprises of
incomplete item in the course of manufacturer which do not fall within.
8)
General Store: These are component manufactured
from raw materials to make assembles or sub assemble by the manufacturer of the
finish product.
9)
Price Parts: These are all good, which do not
fall within any other category
10)
Bin Cards: These are simple cards giving a
description of item including its vocabulary number. The unit of it is issue, the quantities,
received and issued and balance remaining in the bin.
Coco – coal is acclaimed the world leading soft drinks in more
than one hundred and fifty countries (150 countries). An estimated total of 250 million bottles are
been consumed everyday in all parts of the source.
The company
first came to Nigeria in
1953 and the first set up in Nigeria Bottling company was Apapa in Lagos State. This was the beginning of existing growth and
development for the past fifteen years, the company is number one bottle of
soft drinks, selling more than 6 million daily which is still growing and
continuing existing in various part of the federation. The product was first produced by a
pharmacist, by Doctor (Dr) Pemberton; 1886 18th May. The company also produces other product, such
as fanta organe, Gin gale , fanta champion, Schwepps bitter lemon, Eva water and
the current 50cl coke. The
manufacturing, process of cocoa cola is p[assed in carefully measured
combination of water, sugar, and concentrate.
The same standard is maintained in all the resource that make the
produce to be unique and generally acceptable.
CHAPTER TWO
LITERATURE REVIEW
