1.0INTRODUCTION
1.1BACKGROUND OF THE STUDY
Inventory control refers to the management function concerned with the acquisition, storage, handling and usage of inventory, so as to ensure availability of inventory when needed, provide adequate cushion for contingencies and denying maximum economic benefits and at the same time minimizing wastage and losses.
Independently, inventory purse can be defined as a quality of goods or maternal in the control of the enterprises and hold for a time in its relatively idle or unproductive state, awaiting its intended use or sale. It is equally identified as stock on hand at a given time.
Control is necessary so as to minimize cost and at the same time keep our services good enough so that an organization do not lose business. The control and maintenance of inventory is a problem that is common to organization in different sectors of the company. Inventory problems have proliferated as technological ability to produce good in greater quantities and at a factor rate. Cash invented in inventories could be used some where else for profit making, debt servicing on dividend distribution. Management is therefore becoming increasingly aware that the overall efficiency of company’s operation is directly related to inventory situation existing within the company. The real problem therefore has been in the determination of inventory level at which many invested in the inventory will produce a rate of return higher than it would if it had been invested in some other areas of business.
TABLE OF CONTENT
Title page -------i
Certification -------ii
Declaration -------iii
Dedication -------iv
Acknowledgement ------v
Table of contents ------vi
CHAPTER ONE:
1.0Introduction ------1
1.1Background of the Study----1
1.2Statement of Problem-----2
1.3Formulation of Hypothesis ----3
1.4Objective of the Study -----5
1.5Significance of the Study ----6
1.7Definitions of Terms ------7
CHAPTER TWO
2.0Review of Related Literature ---12
2.1Introduction ------12
2.2Functions of Inventories ----13
2.3Costs Associated with Inventory ---16
2.4Inventory Valuation Methods ---19
2.5Nature of Inventory Control ----21
2.6Inventory control mechanisms/ Control --23
2.7Inventory Flow Circle -----29
2.8The Impact of Effective Inventory Control
on Profitability of Firms ----31
CHAPTER THREE
3.0Research Methodology ----34
3.1Introduction ------34
3.2Research Design ------34
3.3Instrumentation ------35
3.4Procedures for Data Collection ---36
3.5Population of the Study ----37
3.6Determinations of Samples ----38
3.7Method of Statistical Analysis ---40
CHAPTER FOUR
4.0Data Analysis and Design----44
4.1Introduction------44
4.2Analysis of Questionnaire Responses --45
4.3Testing of Hypothesis -----45
CHAPTER FIVE
5.0Summary, Conclusion and Recommendation -65
5.1Summary of Study -----65
5.2Conclusion of Study ------65
5.3Recommendations -----67
Bibliography -------70
