THE IMPORTANCE OF INVENTORY MANAGEMENT IN SMALL SCALE ENTERPRISES ( A CASE STUDY OF RCN GAS, UYO)
TABLE OF CONTENT
TABLE OF CONTENT
1.0 Background of the study
1.1 statement of the problem
1.2 statement of the objective
1.3 statement of the hypothesis
1.4 limitation and delimitation
1.5 definition of terms
REVIEW OF RELATED LITERATURE
2.1 Historical background
2.2 Definition of inventory management
2.3 Cost of inventory management
2.4 Benefit of inventory management
2.5 Challenges face by inventory management
2.6 Problem Associate with inventory management
2.3 Sources of data collection
3.3 Instrument used for data collection
2.4 Validity and Profitability of Research instrument
3.5 Research population
3.6 Determination of sampling size
3.7 Method of data analysis
Presentation, analysis, and interpretation of data
4.2 Data presentation, analysis, and interpretation of data
4.3 Testing of hypothesis
5.2 Summary of finding
BACKGROUND OF THE STUDY
The most business organization that makes investment that will make them achieve their corporate objectives, these investments are typically in land, building, machinery, stocks of various types, debtors and cash, when organization are assessing investment project account, must be taken not only on the investment in a mom durabh (fixed) assets but in the current assets as well. Current assets are those that will not remain permanently in a company of which stock inventory is we will be linked up with its performance not to put to times a point in the organization efficiency. Basically, inventory (stock) falls under three broad categories.
a. Raw materials, which are the item, the company holds ready for use in the production process required.
b. Work-in-progress, these are particularly manufactured product of manufacturing industry
c. The finished good, which are the goods a stock which is the goods or stock which are ready for sales by the organization, for the the benefit of this research work, we shall be concerned with the position or the benefit of industry control in manufacturing. One should note that when controlling inventory, one should let shareholders' maximization be in consonance with the time's goals. When inventory control is imbalanced there should be stock which, could lead to reduction of sales and which can lead to loss of a customer to another competitors.
1.2 STATEMENT OF THE PROBLEM
Business today sly away from running a small or medium business many have neglected opportunities because of their fear of failure the first problem limitation against most industries is lack the inventory control system to be used which will suit the need of the organization.
The problem also occurs in the area of production, marketing, personnel, and finance there has been the problem of internal valuation via inventory controls the inventory control the system has a direct impact on the profitability of the organization operation and that is why the study came to being.
1.3 STATEMENT OF OBJECTIVES
Despite the limitations of this research work our purpose and focus of writing this is to work out the impact of inventory control as part of the capital with respect to organization performance.
Secondary to have an overview of inventory control, store procedure pricing stock-taking, and of course the general problem accoutered to the above-mentioned process, increases is to establish an empirical, justification for the introduction of means and wants of remediating the stated problems and also to recommend more objective and rationale is carried out mainly to safeguard the assets, check accuracy and reliability of accounting department and to promote operation efficiency, encourage adherence to presentable management policy and ensure accurate reporting.
1.4 STATEMENT OF HYPOTHESIS
A (Ho) poor inventory management is s a result of inadequate stock control facilities.
(Hoi) poor inventory management is not a result of inadequate stock control facilities
B (Hoi) storage space limited the size of the inventory held by the small-scale firms.
(Hoi) storage does not limit the size of the inventory held by the small-scale firms.
C (Ho) proper classification of stock is a major or determinant of efficient inventory control
(Hi) proper classification of stock is not a major determinant of efficient inventory control.
D (Hi) poor inventory management results to either overstocking or understocking problem.
(Hi) poor inventory management is not a result of inadequate stock control facilities.
1.5 LIMITATION AND DELIMITATION OF THE STUDY
To say there was to limitation during this the research will be an understanding as the research focuses on inventory control. Apart from the limitation is inadequate information some data were given as expected within others were given as all they were classified as given companies secrets.
However, due to financial constraints and time factors, the researcher has decided to further limit the study to the inventory control system. The research was able to collect information.
1.6 DEFINITION OF TERM
It is important at this point to offer some delimitation and encourages to some of the terms that form the operational framework for the research work in order to facilitate the clearance of purpose.
INVENTORY: the quality of goods on hand and available for sale at any given time similarly, it is the measured amount of some goods which varies in the quality of war time in response to demand process, which operates to diminish the stock and a replenishment process which operates to increase it.
CARRYING COST: are cost incurred for holding inventories including the opportunity cost of fund lavested inventory insurance, cost of deterioration, and obsihucence.
SUFFER STOCK: otherwise, know as state stock is the quantity of stock held in order to ensure. That demand is not even when order one in transit.
LEAD TIME: this is a time of actually receiving the materials
ORDERING COST: this consist of the clerical cost preparing a purchase order and the special processing and receiving cost related to the number of order processed.
QUALITY: the optimum quantity of inventory to be purchase that minimize the carrying cost and ordering cost.
MINIMUM STOCK LEVEL: the level below stock should normally be allowed to fall.
RAW MATERIAL: this one these basic input materials that one contented into finished product through various processing..