TABLE OF CONTENTS
TITLE PAGE PAGES
CERTIFICATION I
DEDICATION II
ACKNOWLEDGEMENT III
LIST OF TABLE IV
CHAPTER ONE
1.1 BACKGROUND OF THE STUDY 1
1.2 STATEMENT OF THE PROBLEM 2
1.3 AIMS AND OBJECTIVE 3
1.4 SIGNIFICANCE OF THE STUDY 4
1.5 SCOPE AND LIMITATION OF THE STUDY 6
1.6 RESEARCH METHODOLOGY 8
1.7 THE HYPOTHESIS OF THE STUDY 8
1.8 ORGANIZATION AND PLANS OF THE STUDY 9
CHAPTER TWO
2.O LITERATURE REVIEW11
2.1 INVENTORY CONTROL DEFINITION AND TYPES 11
2.2 IMPORTANCE OF INVENTORY CONTROL 12
2.3 MATERIAL PURCHASE 12
2.4 MATERIAL STORAGE 13
2.5 CENTRALIZATION OF MATERIAL STORAGE 13
2.6 INVENTORY VALUATION METHOD (MATERIAL PRICING) 14
2.7 STOCK TAKING 16
2.8 BRIEF HISTORY OF THE ORGANIZATION 17
2.9 COMPUTERIZATION OF NBC PLC 18
2.10 CALCULATING THE ECONOMIC ORDERING QUANTITY (EOQ) ` 19
CHAPTER THREE
3.0 INTRODUCTION 24
3.1 RESEARCH DESIGN 25
3.2 POPULATION OF THE STUDY24
3.3 SAMPLE SIZE24
3.4 SOURCE OF DATA AND DATA COLLECTION INSTRUMENT25
3.5 QUESTIONNAIRE BASIC ASSUMPTION 26
3.6 STATISTICAL TECHNIQUES/TOOLS 26
3.7 PROFILE OF THE CASE STUDY 26
CHAPTER FOUR
4.0 DATA ANALYSIS AND PRESENTATION 28
4.1 INTRODUCTION 28
4.2 CHARACTERIOSTICS OF RESPONDENT ANALYSIS 28
4.3 THE HYPOTHESIS RESULT 33
4.4 DISCUSSION OF FINDINGS 34
CHAPTER FIVE
5.0 SUMMARY OF INDINGS, CONCLUSSION AND RECOMMENDATION 37
5.1 SUMMARY OF FINDINGS 37
5.2 CONCLUSSION 38
5.3 RECOMMENDATION 38
BIBLIOGRAPHY 40
QUESTIONNAIRE 41
CHAPTER ONE
1.1 BACKGROUD OF THE STUDY
A major problem facing the stock control has affected the growth of business or company is the determination of an economic order quantity that will minimize total inventory cost. The purchasing department only orders the amount needed to attain the maximum stock level whenever stock reaches or fall below the minimum stock level. While the company fails to realize that the minimum level does not have to be attained always, it has cost implications whenever stock falls below minimum level, ordering cost per unit decreases as quantity increases, however, there will be an increase in carrying cost. Hence, total cost is not minimized whenever the quantity order is greater than the optimum required that is the economic order quantity.
The company is faced with the problem of delayed with regards to local supplies of its production materials such as sugar, and water bottle soften carbon(iv)oxide02. even though local supplies constitute only 28% of the total production material used in most cases, supplies fail to meet the delivery date upon because they do not know the exact materials required and yet will not admit ignorance. The high value part of the materials on the one hand and the financial inability on the part of suppliers initially may not realize the huge amount of capital involved with the result that they will not supply at all and fail to inform the company of their inability to supply.
