ABSTRACT

Inventory control constitutes the most significant part of current assets' of larger majority of Nigerian manufacturing industries. Because of the relative largeness of inventories maintained by most firms, a considerable sum of an organization's fund is being committed to them. This work aims at showing that ineffectiveness in the management of inventory is as a result of not having a key tool for inventory control, the principle controlling stock which include having a buffer/reorder level, conducting periodic checks, ordering just in time for sales or some other way of constantly checking stock levels. The ABC system which uses different methods for re-ordering based on the promise that on most inventories, a small percentage of items accounts for a large percentage of inventory items are also used. Logically and al.so from practical experience as has been proved in this project work, one of these methods is a key tool for this major problem of ensuring that sufficient goods or materials are retained in stock to meet all requirement without carrying unnecessary large stocks. This is the methods employed in the exploration of the study and data collection methods which is statistical in nature. Simple regression and Pearson's product moment correlation are employed in analyzing the data collected and testing the hypothesis. In the findings, we discovered that inventory control cannot be done by guess work or trial because it will not be effective and we also discovered that fluctuations in demand for inventory sometimes occur because the future is unknown, the goods are subject to changes due to many factors. In recommendation, a company should determine a method of controlling inventory. The management should ensure that such a technique when adopted should be properly implemented by the staff responsible. In conclusion, Inventory control is perhaps the single • most important control technique having direct relationship with marketing and financial policies and for the stock re-order level should be taken into account in planning, organizing and controlling inventory.