ABSRACT
The important of inventory control system in a manufacturing company cannot be over emphasized. Therefore it will be very important to formulize ourselves with the relevance of cost accounting in a manufacturing company. Inventory control systems identify the major factors involved in frequent shortage of raw materials and suggest ways of curbing them. Inventory control system aids management in curbing the incidence of pilfering and stock-outs.its add to the body of knowledge and literature on inventory control management in corporate organization. Its creates awareness of needs to pursue vigorously a research programmed into local alternative source of raw material. This project work will be divided into five chapters as a method of reporting a research work. The first chapter will contain background to the study and introduction, the important of inventory control system in a manufacturing company. The reason for choice of subject will be discuss together with the significance of study. Chapter two will contain the review of literature aspect of the project by various authors related to the topic. Chapter three will discuss the method of collecting data which is method use in obtaining the relevant information in carrying out the research work, while the presentation of inventory control system and findings presented in chapter four. Lastly, the conclusion part which is the chapter five will contain summary of finding and recommendation are made.
TABLE OF CONTENTS
TITLE PAGEi CERTIFICANTION ii
DEDICATION iii
ACKNOWLEDGEMENT iv
TABLE OF CONTENTS v-vii
ABSTRACT viii
CHAPTER ONE
1.0INTRODUCTION 1
1.1HISTORICAL BACKGROUND OF NIGERIA BREWERIES 2
1.2OBJECTIVE OF THE STUDY 3
1.3STATEMENT OF RESEARCH QUESTIONS4
1.4STATEMENT OF RESEARCH HYPOTHESES 4
1.5 SIGNIFICATION OF THE STUDY5
1.6 LIMITATION OF THE STUDY6
1.7SCOPE OF THE STUDY 7
1.8OPERATIONAL DEFINATION OF TERMS 7
CHAPTER TWO
LITERATURE REVIEW
2.0INTRODUCTION 9
2.1MEANING OF INVENTORY 9
2.2NATION OF INVENTORIES 11
2.2.1RAW MATERIAL 11
2.2.2FINISHED GOODS 11
2.3INVENTORY CONTROL 11
2.4COST OF INVENTORY 12
2.4.1PURCHASE COST 13
2.4.2CARRYING/HOLDING COST 13
2.4.3ORDERING COSTS 15
2.4.4STOCK-OUT COST 16
2.4.5STOCK LEVEL 18
2.4.5.1 MAXIMUM LEVELS18
2.4.5.2MINIMUM LEVELS 19 2.4.5.3 RE-ORDERING LEVEL 19
2.4.5.4 RE-ORDERING QUANTITY 20
2.5INVENTORY MANAGEMENT TECHNQUES 20
2.5.1THE ABC APPROACH22
2.5.2RE-ORDER POINT SYSTEM 22
2.5.3VISUAL REVIEW 23
2.5.4THE CONSTANT CYCLE SYSTEM24
2.5.5 THE E. O.Q 24
2.5.6SAFETY STOCK AND STOCK-OUT25
2.5.7PERPETUAL INVENTORY SYSTEM 27
2.6MATERIAL PRICING 28
2.6.1 FIFO 29
2.6.2LIFO 29
2.6.3SIMPLE AVERAGE METHOD 29
2.6.4 STANDARD PRICE METHOD 30
2.7FACTORS THAT DETERMINES INVENTORY LEVEL 31
2.8JUST-IN-TIME INVENTORY STSTEM [JIT] 32
CHAPTER THREE
3.0RESEARCH METHODOLOGY
INTRODUCTION
3.1RESTATEMENT OF RESEARCH QUESTIONS 36
3.2RESTATEMENT OF RESEACH HYPOTHESIS 37
3.3RESEARCH INSTRUMENT38
3.4SELECTION OF SAMPLE SIZE39
3.5DATA COLLECTION PROCEDURES 39
3.6PROCEDURES AND DATA ANALYSIS40
3.7LIMITATION OF THE METHODOLOGY EMPLOYED40
CHAPTER FOUR
PRESENTATION AND ANALYSIS OF DATA
4.0INTRODUCTION42
4.1DEMOGRAPHIC CHARACTERISTICS OF THE RESPONDENT41-54
4.2TEST OF HYPOTHESES 55
4.2.1TEST FOR HYPOTHESIS I56 4.2.2 TEST FOR HYPOTHESIS II57
CHAPTER FIVE
5.0SUMMARY CONCLUSION AND RECOMMENDATION 60
5.1SUMMARY OF FINDINGS 60
5.2RECOMMENDATIONS 61-64
5.3CONCLUSION 65
5.4SUGGESTION FOR FURTHER STUDIES66
BIBLOGRAPHY67
APPENDIX 68