INVENTORY VALUATION MANAGEMENT AND CONTROL IN MANUFACTURING ORGANIZATION
ABSTRACT
The need for holding inventories is inherent in any business organization. The space of the inventory will be properly controlled so that the objective of carrying or maintaining adequate inventory levels at minimum cost can be realized. The study therefore examined the system of stock valuation, management and control in manufacturing organization. Considering the nature of this study and the organization a lot of data were generated. Both primary and secondary data were used. Secondary data were generated from the reviews of various authors, while primary data were generated from questionnaire administered and personal interview conducted in the manufacturing organization. Based on the data collected, we found out that the system of inventory control is adequate in design and effective in operation as regard the determination of stock level, which could be attributed to the use of scientific methods in determining the quantity and time to order. The researcher strongly believed that proper and accurate recording of the Bin cards, the use of scientific methods in stock level determination will enhance the in ventory control system of the organization. The researcher suggested that other scientific models like the just in time model and appropriate security officer should be included for enhancement of inventory performance.
CHAPTER ONE
1.0 Introduction
Inventory during production are always in relative investment. It is potentially in movement into and through production and on to the final shipment, if storage and movement is automated management function starts at the point where the automation is planned and operated. According to (store house and stock and management). Inventory valuation, are the planning organizing and controlling activities, which focus on the flour of inventory into through and from the organization.
Many companies have folded up because of carefree altitude towards materials handling. It is not an over statement to say that material cost in all organization concentrate a considerable percentage of production cost and such, administration in relation to stock control should not be neglected since stock consists of a reasonable percentage of a companies current assets.
Inventory management systems help organizations track supplies used. Inventory refers to the supply of materials required for the operation of a business. These supplied correspond to an investment in materials. The proper management of these supplies impacts the ability of business to maximize profits.
Inventory management systems track a wide variety of quantities of stock. Inventory is tracked regarding inventory in stock, items that should be ordered in higher quantities and adequate inventory turnover. Volume purchases are often used to ensure lower prices for frequently purchase items.
Inventory management systems track when an order should be placed, when inventory is at peak volume, the receipt of deliveries of inventory and the anticipated date to order more stock. Analysis of the inventory system purchasing plan can provide information as to which items are not being used and should no longer be ordered.
Different types of inventory control methods can be used to manage inventory. Business may use a ticker control system in which staff count a portion of the inventory on a regular basis to determine inventory levels. Alternately, a click-sheet control system uses a paper record-keeping system to keep track of inventory levels, while stub control is based on the retention of sales receipts to track inventory flow. Offline point-of- sale terminals send information directly from a computer to an inventory management system.
This research is conducted to enable companies with trading and manufacturing orientation understand the following scientific models like economic order quantity and just in time inventory control model and the effect of inventory control on the reported profit of an enterprise.
1.1 Background Of The Study
Inventory valuation management and control involves the recording and monitoring of stock level, knowing when to place order. It also involves the timing of such orders and good knowledge of the delivery lead-time. Many decisions fall under the inventory valuation management and control like when is the best time to purchase material or merchandises which is the best way to handle materials or merchandise inventory once they are received. How should purchasing arrangement be structured? It mis aim at preventing stock out, which has serious consequences.
Most organization invest a large number of inventory items, irrespective of the system of storage adopted. There must be proper management and control for stock keeping system to operate efficiently. Floor space is expensive and must be used to the best advantages. It is therefore necessary to build warehouse for storing material and provide equipment for adequate handling where shelving is not feasible, effect and economic inventory check the following caring cost.
- Storage handling cost
- Transport cost
- Quantity cost
- Appraisal cost
Inventory control is an act of management, which ensure the provision of the required quantity of stock of the required quantity at the required time with the minimum amount of capital tied up. It embraces stock control procedures, placing of required order, receiving inspecting, storing and issuing. It is an important task.
In the course of our study effort will be made to itemize the advantages arrived at if proper inventory control are put in place as stock is very useful part of the company’s asset.
Inventory are classified into four:
- Spare parts inventory
- Raw material inventory
- Work in progress inventory
- Finished goods inventory
Continuous inventory provide a great deal of information for management. Hence inventories are necessary in order to satisfy the ever-increasing need of the customers.
1.2 Statement Of Problems
The problem arises from the fact that organizations (mainly manufacturing ones), base their stock control on experience, gues work and human judgmental approach other as EOQ which removes entirely all element of bias in determining stock level. Also, the determination of minimum stock level, maximum stock level, the re-order level, land-time provision, economies order quantity and other relevant model that were conspicuously ignored. The relative degree of weakness of the internal control system with respect to stock leaves much to be desired especially in the management and control of most firms.
Furthermore, indiscriminate placing of orders increases the ordering cost. Also buying in bulk over and above the economic order quantity increase the holding cost. Streamlining the ordering and holding cost and proper valuation of inventories is the problem. This study is expected to solve for manufacturing companies.
1.3 Objective Of The Study
The objective of the study are as follows:
- To evaluate the systems of internal control with respect to stock.
- To ascertain the company’s re-order point and safety stock level.
- To ascertain whether the cost incurred in maintain the inventory is economically justifiable in the light of profit opportunity available.
- To ascertain the modern inventory control techniques (if any) which the company has or will apply during the period of economic recession like (SAP).
- To determine a better approach to inventory valuation, recording and control and offer useful suggestions on how management can take decision and solve problems associated with inventories.
- To ascertain whether the method of stock valuation can affect the company’s profit and loss and the balance sheet.
- To ascertain whether there are proper security covering and handling stock storage and control.
Proper storage condition must be maintained in order to minimize inventory bases through pilferage, damage, degeneration and careless handling. It goes without challenge that for a cost accounting system to be fully effective there must be proper design system of re-ordering materials from the time the order is place to the time the material is issued to production sold.
CHAPTER TWO
2.0 Literature Review
2.1 Introduction
The review of relevant literature is the main topic of this chapter. A literature review covers theoretical and methodological contributions to a certain issue in addition to the state of knowledge at the time of writing. It provides information about the state of the art in relation to the subject you are writing about. It examines the body of work on the chosen subject. The literature evaluation in this study comprises the …
Procedure for Downloading the PDF (Docx) Material
Inventory Valuation Management and Control in Manufacturing Organization can be downloaded by requesting the full set of materials at the project or seminar cost. The document will be sent via Microsoft Word (MS-Word) format via WhatsApp (e-mail) following payment confirmation.
| Seminar Material Cost ₦3,000 | Project Material Cost ₦5,000 |
Request Complete Material
 | Click here to request the Complete Material via WhatsApp including;
|
TABLE OF CONTENTSPRELIMINARY PAGES
- Title page
- Approval page
- Dedication
- Acknowledgement
- Table of Contents
- Abstract
INTRODUCTION
- 1.0 Introduction
- 1.1 Background …
- ⋮
LITERATURE REVIEW
- 2.1 Introduction
- 2.2 Conceptual Review
- 2.3 Theoretical Framework
- ⋮
- 2.4 Empirical Studies
- 2.5 Research Gaps
- 2.6 Summary of Literature Review
CHAPTER THREE
RESEARCH METHODOLOGY
- 3.1 Introduction
- 3.2 Research Design
- 3.3 Population of Study
- 3.4 Sampling and Sampling Technique
- 3.5 Validation of Research Instrument
- 3.6 Method of Data Collection
- 3.7 Method of Data Analysis
- 3.8 Questionnaire Administration
- 3.9 Ethical Consideration
- 3.10 Statistical Analysis
CHAPTER FOUR
DATA ANALYSIS, RESULT AND DISCUSSION
- 4.1 Introduction
- 4.2 Presentation and Analysis of Data
- 4.3 Re-statement of Research Questions
- 4.4 Test of Hypotheses
- 4.5 Discussion of Findings
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATION
- 5.1 Introduction
- 5.2 Summary of Findings
- 5.3 Conclusion
- 5.4 Recommendation
- 5.5 Suggestion for Further Study
REFERENCES
APPENDIX A - “QUESTIONNAIRE”
Disclaimer for Complete Material Utilization
The displayed research work titled "Inventory Valuation Management and Control in Manufacturing Organization" is stated as a research guideline towards accomplishing your assigned project / seminar research work. All the research materials on this website are ONLY for research purposes and should be used as a guideline in developing your research work. For no reason should you copy word for word as projectlist.com.ng will not be liable for any who copied the material. By ordering the complete research guideline, it signifies that you've accepted our terms of service.
PRELIMINARY PAGES
- Title page
- Approval page
- Dedication
- Acknowledgement
- Table of Contents
- Abstract
INTRODUCTION
- 1.0 Introduction
- 1.1 Background …
- ⋮
LITERATURE REVIEW
- 2.1 Introduction
- 2.2 Conceptual Review
- 2.3 Theoretical Framework
- ⋮
- 2.4 Empirical Studies
- 2.5 Research Gaps
- 2.6 Summary of Literature Review
CHAPTER THREE
RESEARCH METHODOLOGY
- 3.1 Introduction
- 3.2 Research Design
- 3.3 Population of Study
- 3.4 Sampling and Sampling Technique
- 3.5 Validation of Research Instrument
- 3.6 Method of Data Collection
- 3.7 Method of Data Analysis
- 3.8 Questionnaire Administration
- 3.9 Ethical Consideration
- 3.10 Statistical Analysis
CHAPTER FOUR
DATA ANALYSIS, RESULT AND DISCUSSION
- 4.1 Introduction
- 4.2 Presentation and Analysis of Data
- 4.3 Re-statement of Research Questions
- 4.4 Test of Hypotheses
- 4.5 Discussion of Findings
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATION
- 5.1 Introduction
- 5.2 Summary of Findings
- 5.3 Conclusion
- 5.4 Recommendation
- 5.5 Suggestion for Further Study
REFERENCES
APPENDIX A - “QUESTIONNAIRE”
Disclaimer for Complete Material Utilization
The displayed research work titled "Inventory Valuation Management and Control in Manufacturing Organization" is stated as a research guideline towards accomplishing your assigned project / seminar research work. All the research materials on this website are ONLY for research purposes and should be used as a guideline in developing your research work. For no reason should you copy word for word as projectlist.com.ng will not be liable for any who copied the material. By ordering the complete research guideline, it signifies that you've accepted our terms of service.
Frequently Asked Questions (FAQ)
Can this topic “Impact of Accountability on Public Sector Financial Management in Nigeria” be used for Accounting and Finance Project?
Yes it can be utilized for research — Fiscal accountability is central to public financial management. Public financial management cannot be realized without effective fiscal accountability. The study examined impact of accountability on public sector financial management in Nigeria (a case study of selected local government areas of Lagos state). In specific terms, the study investigated the extent to which regulatory laws, compliance reporting and legislative control influence financial management of the Nigerian public sector. The study sampled seven public agencies in Nigeria namely NDLEA, NERC, NOA, NDIC, BPE, DMO and NPC. Questionnaire was used to collect data from respondents, who are accountants and auditors in selected agencies. The descriptive statistics and multiple regression analysis were employed for the analysis of data. Findings revealed that regulatory laws, compliance …
Can this topic “The Use of Information and Communication Technology to Effect Service Delivery by Banks in Nigeria” be used for Banking and Finance (BF) Project?
Yes it can be utilized for research — This research was carried out to examine the effective service delivery by banks in Nigeria through the use of (ICT). There have been series of assumption that the use of information and communication technology has greatly enhanced the output of the banking sector in Nigeria. It is in a bid to confirm these assumptions that the researcher carried out this study. Questionnaire was the instrument used to collect data from respondents with a sample size of one hundred staffs from various banks in Nigeria, information was also sought from textbooks and journals based on the analysis of data, it was revealed that the use of information and communication technology has really enhanced the effective service delivery in the banking sector. …
Can the material for “The evaluation of water transportation and it’s effect on economic growth in Nigeria” be used as a guide for Maritime and Transport Project?
Yes it can be used — This study was carried out to evaluate the use of water transportation and its effect on economic growth in Nigeria using Lagos State Waterways Authority. To achieve this objective, four research questions and three research hypotheses were formulated to guide the study. The data was collected from both primary and secondary sources. The primary data were collected with the help of a well-structured questionnaire of two sections administered to staff and management of Lagos State Waterways Authority. The collected data were analyzed with tables and simple percentages to analyze the research questions while Chi-square statistical tool was used to test research hypotheses. The study reveals that there is a significant relationship between the effect of transportation and logistics systems in …
Can the material for “The Importance of Employee Promotion in Business Organization” be used as a guide for Business Administration and Management (BAM) Project?
Yes it can be used — This study shows the Importance of Employee Promotion in Business Organization, A Study of Guinness Nigeria Plc. This study concentrates on four factors or standards (these are promotion and interest in jobs, promotion and job satisfaction, promotion and better service and promotion and organizational goals and objectives) which affect organizational performance. These factors are posed as questions in the questionnaire (the research methodology) which were administered to the respondents; while the secondary data are the information’s acquired through the use of text books, journals and website. These standards are used to measure the organizational performance. Using a detailed data analytical technique, the chi – square, this study shows that organizational effectiveness can be achieved to a great extent with solid …
Can this topic “Accounting Information as a Tool for Management Decision Making” be used for Accounting and Finance Project?
Yes it can be utilized for research — This research work highlights the result of a research carried out to examine the relevance of accounting information to management decision making in First Bank of Nigeria Limited, Abdullahi Fodio Road Branch. A substantial aspect of the study involved collecting data through the instrumentation of questionnaires and interview. The data collected were classified, analysed and the percentages of the findings presented in a table. The hypothesis was then statistically tested with chi-square in which the calculated value of chi-square equals 14.357 and is greater than the critical value of 5.991. This result showed that accounting information is a tool for management decision making hence, the null hypothesis was rejected and the alternate hypothesis accepted. Based on the findings, it was recommended …
Can this topic “Challenges Preventing Public Secondary School Students from using ICT for Learning in Anambra State and the Way forward” be used for Education Project?
Yes it can be utilized for research — The study investigates the Challenges Preventing Public Secondary School Students from using ICT for Learning in Anambra State and the Way forward. In achieving this aim, the following specific objectives were laid out to identify school teachers’ perceptions in implementing ICT tools in teaching and learning in classroom, examine the problems preventing public secondary school students from Learning using ICT tools in Anambra State, determine the challenges of using ICT tools in teaching and learning in the classroom among school teachers, identify that to what extent do teachers use ICT tools in teaching and learning in the classroom, ascertain the availability of interactive ICT in teaching and learning of Public Secondary School Students in Anambra State, and suggest the way …
Can this topic “Design and Fabrication of Automatic Potato Peeling Machine” be used for Mechanical Engineering Project?
Yes it can be utilized for research — The study focuses on the fabrication and design of an Automatic Potato Peeling Machine. In achieving this aim, the following specific objectives were laid out to design and fabrication a machine that can peel potato and improve the existing manual and electrical operated Potato Peeling Machine. This project deals with durability assessment for development of potato peeling machine. The study of manufacturing was very important in order to carried out this project to ensure that student understand on what are needs to do. This project is about development of potato peeling machine to help people easy to use at home. This project involved the process of sketching and drawing. After design had complete, the next process is fabrication to transform …
Can the material for “Information and Communication Technology as a Tool for Creating Job Opportunities in Nigeria” be used as a guide for Computer Science Education Project?
Yes it can be used — Information and Communication Technologies (ICT) refers to the convergence of media technology such as; audio-visual and telephone networks with computer networks, by means of a unified system of cabling. The study evaluates the Information and Communication Technology as a Tool for Creating Job Opportunities in Nigeria. In achieving this aim, the following specific objectives were laid out as follows to identify the detrimental effect of Information communication and technology (ICT) use on Nigerian youths, and determine if ICT can be used as a tool for creating job opportunities in Nigeria. The research design used in this report is descriptive design, utilizing questionnaire method to obtain information from the respondents for this project. A total of 180 (one hundred and eighty) …
Is the topic “Design and Simulation of Vehicle Speed Control System” recommended for Computer Science (CS) Project?
Yes it is highly recommended — This proposed work is an attempt to control the speed of the vehicle designed with computer software to enable the third party or owner to get the location, speed and activity of the driver. To achieve this, the system can transmit the information in real time. The use of GSM/GPRS technologies allows the system to track the objects and provide the up-to-date information. This information is authorized to specific users over the internet as the server gets the information. It is the tele-mointoring system to transmit data to the remote user. Thus the applications are used in real time traffic surveillance. This study proposes a prototype model for location tracking using Geographical Positioning System (GPS) and Global System for Mobile …
Can the material for “Paradox of Location and Poetry in Yeibo’s the Forbidden Tongue and Ikiriko’s Oily Tears of the Delta” be used as a guide for English Language Project?
Yes it can be used — This research work aims at discovering the inimical acts of crude oil exploitation in the Niger Delta region as portrayed through select poems in the anthologies of Yeibo and Ikiriko respectively. The main objectives of this study is to discover the “paradox” of the location of the oil wealth region in the nation being the poorest and most marginalised region, it also seeks to project through the unique poetic tradition of the Niger Deltans the social, economic, political, and environmental issues encountered by the aborigines; this it does using the works of two prominent eco-poets from the region, Ebi Yeibo and Ibiwari Ikiriko. This work adopts theoretical framework of eco-criticism, which is a contemporary and interdisciplinary theory that examines the …