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Effectiveness of inventory management in-a-manufacturing-company   ABSTRACT

This study examines the essence of effective inventories control and management to manufacturing companies with particular emphasis on Ama Greenfield Breweries plc. The aim of this study is to investigate and ascertain areas of lapses by the company and offer effective ways and solutions in which the manufacturing company can explore the services of inventory management to effect its objectives. In carrying out this study, various research instruments such as questionnaires and oral interview were used to collect data from respondents and a research design was adopted with a sample size of 52. The statistical tool used for this work is Chi-square. Based on the analysis, it was discovered that inventory management plays a vital role in the manufacturing company. A well functional inventory management following the recommendations can bring about proper management thereby enhancing proper and effective production and it will equally ensure the effective, efficient and adequate use of materials and resources in the manufacturing company.

TABLE OF CONTENTS

Title page – – – – – – – – -i
Approval page- – – – – – – – -ii
Dedication – – – – – – – – – -iii
Acknowledgement – – – – – – – -iv
Abstract – – – – – – – – -v
Table of contents – – – – – – – -vi

CHAPTER ONE

1.0 Introduction – – – – – – – -1
1.1 Background of the study – – – – – -1
1.2 Statement of the problem – – – – -5
1.3 Objective of the study – – – – – -6
1.4 Test of hypotheses – – – – – – -6
1.5 Research questions – – – – – – -7
1.6 Significance of the study – – – – – -8
1.7 Scope of the study – – – – – – -8
1.8 Limitation of the study – – – – – – -9
1.9 Definition of terms – – – – – -9

CHAPTER TWO

2.1 Introduction – – – – – – – -11
2.2 Concept of inventory- – – – – – -11
2.2.1 Types of inventory- – – – – – – -13
2.3 Classification of inventories – – – – – -15
2.4 Inventory policy- – – – – – – -16
2.4.1 Reasons for inventory – – – – – – -17
2.5 Inventory control – – – – – – – -19
2.5.1 Purposes of inventory control – – – – – -21
2.6 Cost associated with inventory – – – – -21
2.7 Inventory model – – – – – – – -25
2.8 Economic order quantity – – – – – -26
2.8.1 Replenishment model- – – – – – -28
2.9 Inventory level – – – – – – – -28
2.10 Inventory valuation method – – – – – -30
2.11 Inventory Accounting System – – – – – -33
2.12 Stock taking methods- – – – – – -34
References – – – – – – – – -35

CHAPTER THREE

RESEARCH METHODOLOGY
3.0 Introduction – – – – – – – -36
3.1 Research design – – – – – – – -36
3.2 Area of the study – – – – – – – -36
3.3 Population of the study- – – – – – -37
3.4 Determination of the sample size and technique- – -37
3.5 Sources of data – – – – – – – -40
3.6 Method of data analysis – – – – – – -40
3.7 Validity of the test – – – – – – -41
3.8 Reliability of the test – – – – – – -41

CHAPTER FOUR

DATA PRESENTATION AND ANALYSIS – – – –
4.0 Introduction – – – – – – – -43
4.1 Presentation of data- – – – – – -43
4.2 Analysis of data – – – – – – – -44
4.3 Test of hypothesis – – – – – – -54

CHAPTER FIVE

SUMMARY, CONCLUSION AND RECOMMENDATION
5.1 Summary of findings- – – – – – -58
5.2 Conclusion- – – – – – – – -61
5.3 Recommendation – – – – – – – -62
Bibliography – – – – – – – -65
Appendix- – – – – – – – -68

CHAPTER ONE

INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Inventory is one of the resources that are managed by business organizations and it was first recorded in 1601. The need for inventory control cannot be overemphasized as it is a means for improving the performance of manufacturing industries. Inventory can be defined as a record of a business current assets including property owned, merchandise on hand and the value of work in progress and work complete but not sold and it is classified as a current asset because it can be turned into liquid cash within a short period of time. Inventory has created a great impact on the profitability of the manufacturing firm which resulted to the deep research of this topic. Effectiveness of inventory.

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