The need for holding inventories is inherited in any business organization. The
space of the inventory will be proper controlled so that the objectives of
carrying or maintaining adequate inventory levels at minimum cost can be
The study therefore, examined the system of stock valuation, controlled and
management in Emenite limited. Considering the nature of the study and the
company, a lot of data were generated from questionnaire administration and
proposal interview conducted on staff of the industry.
Based on the method of data collection, the researcher found out that the
system of inventory control is adequate in design and effective in operation as
regards the determination of stock levels which could be attributed to the use
of scientific method in deterring the quantity and time to order.
The researcher strongly believe that proper and accurate recording of the him
cards, the use of scientific method in stock level determination will enhance
the inventory control system of the company.
TABLE OF CONTENTS
Background Of The
Statement Of Problems
Purpose Of The
Scope Of The
Significance Of The
Limitations Of The
Method of Valuing
Sample And Sampling
Instruments Of Data
Reliability Of The Instrument
Validation Of The Instrument
Method Of Data
Presentation And Analysis Data
First Null Hypothesis
Discussion Of Result /
Implications Of Research
Suggestion For Further
Inventory valuation, management and control is the system designed by the
management of a firm to control it’s investment in stock.
This is found to be in
existence in Emenite limited, Emene, which produces roofing sheets and hard
boards for ceiling.
The system involves the recording and monitoring of stock levels, knowing when
to orders and how many orders to be placed.
Effective, efficient and
Economic inventory helps to check the following costs.
Carrying cost which include interest on capital invested in stock.
3. Store staffing
4. Material handling cost
5. transportation cost
Since management needs information on inventory as a guide to decision making,
inventory handling should not be placed on the basic of trial and Arrow.
Material control is an act of management which ensures the provision of the
required quality quantity of inventories of the required quantity at the
required time. With the minimum amount of capital tied up. It embraces stock
control procedure, placing of purchasing, receiving, inspecting, storing
requirement and issuing of stocks.
It is an important and
Inventories are necessary in order to satisfy ever yawing needs of customers
and smooth running of an organization, most organizations invest in large
number of inventory items, irrespective of place for everything and everything
in it’s place for the stock keeping system to operate effacing.
Floor space is very expensive and must be used to the build warehouse for
storing materials and provide things for feasible, bin racks and shows must all
Is there no between def of
Problems of stock valuation, its management and control exists in almost all
firm except service oriented organizations. The problems arise from the fact
most organization (mainly manufacturing companies) based their stock control on
human judgment approach rather than applying modern scientific models like
recorder levels which removes entirely all elements of bias in determining
stock levels, lead time provision, Economic order quantity (EDQ) and other
relevant inventory models are consciously 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 the control
aspect of most firms.
Furthermore, indiscriminate placing of orders in creases the ordering costs.
Also, buying in bulk over above the economic order quaintly (EOQ) increases
The total of the invoice price of the inventory plus other incidental cost
associated with ordering and holding cost give the value of the inventory.
Streamlining these costs and
proper valuation of inventories is the problem this study is expected to solve
for Emenite limited.
1.3 PURPOSE OF THE STUDY
This very research is conduction to enable companies with trading and
manufacturing Orientation to see the effective models. Examples, minimum stock
level, economic order quantity (E.O.Q) etc. of inventory control and effect
they have on the reported profit of an enterprise.
This have affected many comprise because of carefree attitude towards stock
On a more general
basis, the over all objective of the research is as itemized bellows.
To ascertain the modern inventory control techniques (if any) which the company
uses during this period of economic recession (S.A.P)
To evaluate the system of material control with respect to stock.
To determine whether sales forecast can be made with relative degree of
To determine a better approach to inventory valuation, recording and control.
Finally, to offer useful suggestion on how management can make decisions and
solve problems associated with inventories .
Qualified staff are the people that ascertain how Emenite Limited determine
their re-order point and achieve safety of stock level.
1.4 SCOPE OF THE STUDY
This research has to do with an industrial sector known as Emenite Limited,
The research is mainly concerned with the following points:
To investigate into the purpose of inventory control
To investigate and find out if the company keeps appropriate internal control
system in relation to inventory.
To ascertain if the method of stock valuation can affect the company’s profit
and loss and balance. Sheets
To ascertain there are proper security covering handing handling and storage of
1.5 RESEARCH QUESTIONS
Does the company use scientific method of inventory like buffer level, maximum
is there proper security covering handling and storage of stock?
Are there procedures for receiving materials ordered?
The research hypothesis is made to test the reality and correctness of the
questions contained in inventory valuation, management and control in
The research question can only be corrected when they have been tested and
proved to be corrected.
This work is designed to test
the following Hypothesis:
The company uses scientific method of inventory like
buffer level, maximum stock level etc.
The company uses scientific method of inventory like buffer level, maximum
stock level etc
There is no proper security covering handling and storage of stocks.
There is proper security covering hurdling and storage of stock
There is no procedure for receiving materials ordered.
There is procedure for receiving material ordered
There are no purposes of inventory control in Emenite Enugu
There are purpose of inventory control in Emenite Enugu.
1.7 SIGNIFICANCE OF THE
Inventory control in modern business period, such as a mouth, quarterly,
semi-annually and annually inventories compromise a significant portion of the
assets of many companies, hence, the valuation and presentation inventories
have a considerable effect in the determination and presentation of the
financial position and the result operations of those enterprises.
The study makes it crystal dear why it is necessary for companies and
individual to control their inventories such reasons as to minimize carrying
case, regulate the quantities of stock on hand etc.
Also, by this study an opportunity is created for existing and prospective
business from the use of modern inventory control techniques.
Finally, to any user of this research the readers, it will improve a great
part, their theoretical and practical knowledge about inventory valuation
control and management.
it is stock of products the company deals on or manufactures and components
that makes up the product.
2 CONTROL: This is the act of selling
performance (expected) and monitoring actual performance against standard”.
The primary concern in management of stock control must be to provide the
rights goods in the right condition at the right price in right place at the
3 INVENTORY CONTROL:
The regulation of quantities of material on hand in such a way as to ensure
current needs while avoiding excess reserve stock, the calculation being based
on the rate of issues and time necessary for replenishment.
4 SAFETY STOCK: This is the quantity
of stock added to the expected demand (quantity) during the lead time to take
care of fluctuations in demand and lead time variations.
5 CARRYING COST:
This is the cost of inventory storage handing and insurance together with
required rate of reform in invested inventory.
This cost includes floor-space, racks, bins, securing guides, maintenance etc.
6 ORDERING COST:
These are entire cost a of acquiring, material stock. Generally, they are costs
which are incurred in requisitioning purchase ordering, transportation,
received, inspecting and storing.
7 STOCKS RECORDS CARDS:
these are cards for each item in the stock and they show names of products,
quantities received, issued, balance and prices.
8 BASE STOCK: It is the minimum
quantity of raw materials or other goods, without which they the company cannot
operate their plants or conduct their operations. It is at times treated as
being a fixed assets which is under constant renewal by charges to revenue.
TERMS AND CONDITIONS APPLY
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