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An Optimal Inventory Control Of Raw Materials And Network Analysis Of Production Planning
[A CASE STUDY OF AKA PAINT NIGERIA LIMITED]
CHAPTER ONE -- [Total Page(s) 4]
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INDUSTRIAL ACTIVITIES
v Essentially for local Nigeria market – replacement and original equipment
vExports of car paints.
TYPES OF PAINT MANUFACTURED
- Emulsion paints
- Texcote paints
- Gloss paints
- Car paints
To
produce these products several raw materials are needed and in
different proportions. Some of the raw materials in puts includes methyl
ethyl ketone (MEK) toluene resin, petrol, kerosene, ethylene glycol,
etc, these products yield different levels of profit to the company and
how to make profits as large possible is mystifying to management.
Furthermore,
the scarcity of some of these raw materials limits the flexibility of
management in production. Other restricting factor as interview
disclosed are labour time and demand for the products.
1.2 INVENTORY PROBLEM
An
inventory problem is one which seeks to determine when it is necessary
to stock physical goods or commodities for the purpose of satisfying
demand over a specified period of time
This type of problem aims at
knowing how much of the commodity order for and when to make the order.
An over stock requires higher invested capital per unit time but less
frequent occurrence of shortages and placement of orders. Whereas an
under stock decreases the invested capital per unit time but increase
the frequency ordering as well as the risk of running out of stock.
CHAPTER ONE -- [Total Page(s) 4]
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ABSRACT - [ Total Page(s): 1 ]This study is aimed at determining the optimal quantity of raw materials to be ordered for and when best to make the order. It also aimed in determing the completion time in the producer of paint. A case study of Aka paint industry limited was taken. ¬To complete these, data was collected from the company and the project network was drawn. Mathematical models such as economic lot size model were used in determing the optimal quality of the raw materials to be kept on inventory. Programme eval ... Continue reading---
