The purpose of this project work among others is to examine and appraise the impact of inventory management on organizational efficiency using Glaxo Nigeria plc as the case study. This is commented with the fact that not only raw materials have to be made available for conversion into finished gods but also finished goods have to be had available to the consumers. In carrying out this work, background information of inventory management in the company was examined. Also, in order to extract and attain the importance and benefits of the research, relevant literature on the subject were critically reviewed and structured questionnaires were administered. Responses were sorted, arranged and analyzed. Hypothesis were formulated and tested, using the observed data with chi-square to test validity of the hypothesis. Notwithstanding the fact that Glaxo Nigeria plc embark on inventory management, certain observation and recommendations were made on how to improve the company inventory management. Hence conclusion was drawn on the essence of the study.
It is a General knowledge that inventory refers to as the Goods held for eventual resale by firm. Also inventory is the total amount of stocks held in the store.
There are three types of inventory.
- Raw materials inventories
- Work in progress
- Finished goods inventories
1.1 BACKGROUND OF THE STUDY
Inventory management and corporate objective was given the heeded attention, however, the advent of technology has made it imperative for aware business outfit in Nigeria, the word in general to place inventory management topmost in their agenda of activities especially in the manufacturing companies.
An average manufacturing company spends over half of an income on purchasing machine component and raw materials.
This depicts the fact that raw materials need not only to be made available for conversation into finished goods but also finished goods have to be made available to consumer at the right time and at the right place therefore, the important of inventory control can not to be over emphasized.
Critical analysis of the balance sheet of various companies looks at especially manufacturing companies show that statement of inventory constitutes a large portion of the event asserts, because of the large sized of inventory maintained by manufacturing firms. A considerable amount of fund is required to be committed to them. However, a firm neglecting the management of inventory will be jeopardized its long run profitability and may fail ultimately.
It is great concerns that most business failure had been attributed to inadequate management of inventories and this is more pronounced in unclear developed countries like, Nigeria; where there are adverse conditions to stimulate business failure.
Hence, due to the increase rate of economic instability characterized by function in the price of raw materials and finished gods there is the need for efficient management of inventories.
1.2 STATEMENT OF THE PROBLEM
As the basic objective of the organization, it because obvious to make positive attempt that will minimize the total operation of business. Meet significant proportion of the organization…..