ABSTRACT
This study assessed the management and control of inventory in selected manufacturing firms in Ikeja, Lagos state. To achieve this, the main objectives of the study were to assess the inventory management method currently in use by the firms and recommend modern and effective methods that will mitigate the inventory-related challenges confronting the firms. The population of the study comprised of 185 staffs of the three selected manufacturing firms and the calculated sample size was 116. During the research process the researcher collected data via two sources- primary and secondary. Primary data were gathered from administered questionnaires while secondary data were gathered from textbook, journals, publication and manuals. In determining sample size, the researcher used Yaro Yamane formulae. Descriptive statistic was used to analyze and provide answers to the research questions and the inferential statistical tool used to test the hypotheses was Pearson Chi-square. Two hypotheses were generated for the study, the two tested hypotheses gave an output with a p-value of 0.000 and 0.000 respectively which was lesser than the significance level of 0.05. The researcher therefore concluded that the computerized modern method of inventory management and control will mitigate the inventory challenges faced by manufacturing firms within the study area and the Just-in-time (JIT) modern method of inventory management and control will mitigate the inventory challenges faced by manufacturing firms in the study area.
The researcher recommended amongst others that manufacturing firms within the study area should adopt the computerized modern method of inventory management and control or the Just-in-time modern method of inventory management and control as both methods are compatible with the inventory structure of the surveyed manufacturing firms.
TABLE OF CONTENTS
CHAPTER ONE
1.0 INTRODUCTION
1.1Background to the Study 1
1.2Statement of the Problem 3
1.3Research Questions 4
1.4Aim and Objectives of the Study 4
1.5Research Hypotheses 5
1.6Significance of the Study 5
1.7Scope of the Study 6
1.8Limitations of the Study 6
1.9Operational Definition of Terms 7
CHAPTER TWO
LITERATURE REVIEW
Conceptual Framework8
2.1.1 The Nature and Scope of Inventory 8
2.1.2 Types of Inventory 9
2.1.3 Motives for Holding Inventory 11
2.1.4 Inventory Management 13
2.1.5 Importance of Inventory Management 14
2.1.6 Objectives of Inventory Management 15
2.1.7 Factors Involved In Inventory Management 15
2.1.8 Inventory Control 17
2.1.8.1 Importance of Inventory Control 18
2.1.9 Difference between Inventory Management and Inventory Control 18
2.1.10 Physical Counting 19
2.1.11 Modern Inventory Management and Control Methods 21
2.1.11.1 Computerized Inventory Management 21
2.1.11.1.1 Advantages 22
2.1.11.2 Just-In-Time (JIT) 22
2.1.11.2.1 Advantages of JIT Method 24
2.2 Theoretical Framework 25
2.2.1 Economic Order Quantity (EOQ) Model 25
2.2.1.1 Assumptions of the EOQ Model 26
Methods of determining Economic Order Quantity 27
2.2.2 Stochastic Inventory Model 29
2.2.2.1 Assumptions of the Stochastic Inventory Model 30
2.3 Empirical Review of Literature 31
CHAPTER THREE
RESEARCH METHODOLOGY
Research design 34
Study Area 34
Population of the Study 35
3.4Sample size and Sampling Technique 36
3.5Method of Data Collection 39
3.5.1 Primary Data 39
3.5.2 Secondary Data 39
3.6Method of Data Analysis 39
CHAPTER FOUR
4.0 PRESENTATION OF RESULTS AND DISCUSSION
4.1Introduction 41
4.2Distribution of Questionnaires 41
4.3Socio-demographic Information of the Respondents 42
4.4 Hypotheses Testing 60
CHAPTER FIVE
5.0SUMMARY, CONCLUSION AND RECOMMENDATIONS
5.1Summary of findings 63
5.2Conclusion 64
5.3Recommendations 64
REFERENCES 66
APPENDICES 71
Questionnaire 71
LIST OF FIGURES
Figure 2.1 Economic Order Quantity Model 29
Figure 3.1: Directional Guide to Federal University of Technology, Akure. 34
Figure 3.2: Directional Guide to Nigerite Nig. PLC. 35
Figure 3.3: Directional Guide to Dunlop Nig. PLC. 35
LIST OF TABLES
Table 3.1 Number of staffs and their department in each selected firm 36
Table 3.2 A tabular representation of the calculated sample size for the study 38
Table 4.1 Distribution and Return of questionnaires 42
Table 4.2 Gender distribution of the Respondents 43
Table 4.3 Age group distribution of the Respondents 44
Table 4.4 Educational qualification of the respondents 45
Table 4.5 Department of respondents 46
Table 4.6 Length of service in the organization 47
Table 4.7 Response to Question 11 48
Table 4.9 Response to Question 12 49
Table 4.10 Response to Question 13 50
Table 4.11 Response to Question 14 51
Table 4.12 Response to Question 15 52
Table 4.13 Response to Question 16 53
Table 4.14 Response to Question 17 54
Table 4.15 Response to Question 18 55
Table 4.16 Response to Question 19 56
Table 4.17 Response to Question 20 57
Table 4.18 Response to Question 21 58
Table 4.19 Response to Question 22 59
Table 4.20 Response to Question 23 60
Table 4.21 Hypotheses 1 Result 62
Table 4.22 Hypotheses 2 Result 63
