Inventory and its management are related both to materials management and physical distribution management.
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 management in a manufacturing company.
Inventory plays a major role in the operation of many businesses and manufacturing companies. In manufacturing, inventories of raw materials allow companies to operate independently of their sources of supplies.
Day to day operation are not dependent on deliveries from supplies since stock of the necessary mateials are maintained and used s needed. The process of control and management of inventory is a very important factor in the success or failure of any business for example, little stock will result in stock out which will disrupt the production distribution cycle that is crucial to the survival of all manufacturing companies while too much stock will tie down the resources of a company.
Poor or inadequate inventory management can present a serious challenge to the productive capacity of a manufacturing organization. In addition to raw materials and finished goods, many companies also maintain items of assets, property, inventories of work in progress, office supplies, business firms and general operation supplies.
Inventory management can be very convenient if you know how to do it. The well-functioning system is a process of overseeing the flow of items into and out of your stock. The well-functioning system is a process of overseeing the flow of . challenges hindering effective inventory management and control using Flour Mills Company as a case study. Although, effectiveness was seen in this research as the ability to achieve stated inventory levels, judge in terms. Inventory Effectiveness = – Drag Inventory/Total Inventory This measurement gives a simple, overall view of the inventory working for the business. Published lists of the “drag” inventory can then be used to drive action plans to reduce it to zero.
Inventories often constitutes the most significant part of current assets of large companies. Considering the large sum of money that are committed to the stocks of raw materials, work in progress and finished goods, it is therefore of paramount necessity that these stocks be managed efficiently and effectively in order to avoid the jeopardizing of the profit position of the firm.
In inventory, there is an optimum level therefore inadequate inventory causes loss of sale and disrupts the production process while excessive stock level leads to unnecessary carrying cost and obsolescence or spoilage risks.
According to Charles T. Horngrenthe optimum inventory. Level lies between the inadequate inventories and the excessive inventories.
Inventory management aims at maintaining an optimum inventory level that will be carried at the least cost. Loss of sales or business of the company as a result of insufficient inventories of finished goods.
Low productivity in the manufacturing company as a result of poor inventories model used by the company Poor management and control of inventories in the manufacturing company. The specific objectives of this study are as follows: To examine the extent to which insufficient inventory of finished goods cause loss of sales to the company.
To identify the degree to which poor inventory modern used by the company has resulted to low productivity in the company. To ascertain whether the company has suffered from poor management and control of inventories.
There is a significant relationship between low productivity and poor inventories management. There is no significant relationship between proper inventory policies and productivity in a manufacturing company.
There is a significant relationship between proper inventory policies and productivity in a manufacturing company. Does effective inventory control ensure continuous production of goods in Ama Breweries?
What is the state of inventory management in the Nigerian manufacturing company especially Ama Breweries plc?
Has effective inventory control made a significant impact on the manufacturing company? It will be significant to manufacturing companies, firms and businesses as it will enable them keep an adequate inventory control and ensure that they do not run out of stock or have excess stock which can endanger their liquidity position.
It is also important to the government as it will help to reduce waste of investment inventory. It will also help lecturers to really know the importance of inventory control so that they will be able to impact it on their students.
This study will also reveal the relevant methods to be used in preventing mismanagement; it will also improve stock control which has led to the mismanagement and unproductively of materials. Unco-operative attitudes of some of my respondents: It can also be described as the merchandise or supplies held or in transit at a particular point in time.
Prentice — Hall Inc. Prentice Hall International Publishers. Instant Share On Social Media: Hence communication is vital tool for effective mana The presence of oil and gas in the region makes it the goose that lays the golden egINVENTORY MANAGEMENT Meaning and Definition of Inventory: In dictionary meaning of inventory is a “detailed list of goods, furniture etc.” Many understand the word inventory, as a stock of goods, but the generally accepted meaning of the word ‘goods’ in the accounting language, is the .
Inventory Effectiveness = – Drag Inventory/Total Inventory This measurement gives a simple, overall view of the inventory working for the business. Published lists of the “drag” inventory can then be used to drive action plans to reduce it to zero.
Inventory is the stock of any item or resource in campus where as inventory management is the process of reducing inventory cost, keeping inventory from under or over stocking and determining order and recorder points in order to achieve organizational goals.
Inventory management is the process of ordering, storing and using a company's inventory: raw materials, components and finished products.
Inventory management can be very convenient if you know how to do it. The well-functioning system is a process of overseeing the flow of items into and out of your stock. It’s a balance of having just enough products in the warehouse. Effective inventory management keeps the stock costs under control so you can run a successful business.
So, for example, if a company has $2 billion in sales for the year, and average inventory levels of $ million, then $ million in inventory, divided by $2 billion in sales, times days in a year, equals average DIO of