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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]
Page 4 of 4
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1.5 INVENTORY CONTROL SYSTEM
The general objective of
inventory control is to keep stock level so that the combined costs are
at a minimum. This could be achieved with factors via
- When to order
- How many to order
The two major systems of establishing these are
(a) Re-order level system
(b) Periodic review system
(a) The Re-order level system is also known as two- bin system its features are
(i) A predetermined re-order level is set fro each item
(ii) The replenishment order quantity is invariably the EOQ (i.e the Economic Order Quantity)
(iii) When the stock level falls to the re- order level, replenishment is issued
(iv)
The minimum level is calculated so the management would be warned when
demand is above average and accordingly the butter stock is utilized
(b) Periodic review system this is sometimes called the costant circle system. Its features are
(i) Stock levels for all parts are revived at fixed intervals e.g every week
CHAPTER ONE -- [Total Page(s) 4]
Page 4 of 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---
