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The Impact Of Inventory Control In Business Organization
[A Case Study of Nigerite Nigeria Limited]
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CHAPTER ONE
BACKGROUND OF THE STORY.
The importance of inventory control in any organization can not be over emphasized. In fact both wholesaler and retail business firm establish and maintain inventones to meet the possible demand of the customers through the avoidance of running out of stock or stock out cost. And buying higher nice. In addition, minimization of ordering cost, reduction of production cost as well as manufacturing firms keep inventories since manufacturing firms must stock raw materials and component parts in order to meet the demands of the production processes.
Inventory control exists in different size shape and forms to meet a variety of demand. As a result of the importance the current emphasis in management science that refore began with the analysis of inventory control in 1915 develop the first economic cot size equation which was probably the beginning problems.
In 1931, Raymond published in is quantity and economy in manufacturer, in which he develop this idea farther attempting to account for a wide variety of condition. In fact, in the past war period, the management science literature has been filled with the analysis of Inventory and production control system, partly because of the great interest shown by such progressive companies as the Eastman Kodak company, procter and gamble, johson and johson Kodak and a lost of many others.
The word ‘Inventory’ as a stated in the encyclopedia britanica’’ is term use to designate item that are in process of producing goods to be sold. It has also been defined according to migs wand meifs R. as the merchandise which is available fore sale but
not sold duing the year constitution the Inventory of merfchandise bthe year.
Also for clarity sake Burbidge J.L defined it as all of the materials parts supplies expensive tools work in progress and finished products recorded on the book by an organization and kept in the stock room, ware houses or plants ‘’other see it to usable resources that are idle at a given point in time. But in the context of the study of appraising inventory controlling business organization with reference to niger limited. Ikeja which is manufacturing firms Inventory well include raw materials semi finished goods (work in progress) e.g. predict meant from painting and firming (becorceil) as well as finished goods.
This is different from the way Inventory is viewed in a retail environment such as supper market department shop, were Inventory is generally viewed as the stock of goods or sales. It mat how ever, according to Davis et al (1786) include non physical asset such as each account receivable and personnel.
In the general Inventory is associated with manufacturing and retailing firms. Although equipment suoolies and personnel are all integral inventories for organization such as hospital, universities, and other public services organization there fore, wagner (1989) concludes the Inventory mode plays the same role in the field of operation research as do Newtons elementary laws in the field physical well nearcy the same role. Even though the situation considered by the model is idealized, the encompass many of the important consideration for chosen an Inventory policy.
STATEMENT OF RESEARCH PROBLEMS
A cost of business of recent are falling in the country to meet demand of their customers through running out stock some of this firms are attributing this to the vacling economic depression in the country but this explation show ever quite unsatisfactory the research opines that most problems associated with firms especially nigerrite limited in running out of stock to meet customers need, buying of raw materials at higher prices thereby producing at high cost in due to the improper application Inventory control.
The issue here is that customers would then begin to ask question such as ‘‘ is Nigerite limited having finance problem? Are the funds provided reducing year out? Or is there any form of mismanagement? What wad situation some years bank in the organization? As question being asked by customers so also the management or the organization is face with some problems such as ‘why are we sometime out or stock what should be stocked? How many? When should replenishment be affected? In what amount ? how should we adjust production when sales are uncertain/unpredicated?
What capacity will examine the extent too which Nigeria limited has adopted inventory control in organization and recommend possible ways in which the situation could be bettered.
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ABSRACT - [ Total Page(s): 1 ]ABSTRACTInventory control in an organization is a system or process of ascertaining of a point in the time the list of goods business time or period. How ever the process is a tools for rapid growth excellence service delivery and as well sustainable or continuous existence of an organization if effectively and efficiently carried out. Thus, the research hereby intends to vividly discuss on the impact of inventory control in business organization chosen Nigeria limited Ikeja as a case stud ... Continue reading---
