AN OPTIMAL INVENTORY CONTROL OF RAW MATERIALS AND NETWORK ANALYSIS OF PRODUCTION PLANNING

Format: MS WORD  |  Chapter: 1-5  |  Pages: 75  |  262 Users found this project useful  |  Price ₦3,000

GET THE COMPLETE PROJECT

AN OPTIMAL INVENTORY CONTROL OF RAW MATERIALS AND NETWORK ANALYSIS OF PRODUCTION PLANNING

 

CHAPTER ONE

1.0   INTRODUCTION

The development of any firm more especially in production depends to a very great extent on the development and utilization of raw materials. Because of increased techniques and advanced in technology organizations ensure steady production and supply of their goods by storing certain quantities of raw materials as buffer against unprecedented short fall in their supplies. Certain stocks of finished goods are maintained in order to meet up with unforeseen demand or short - notice orders. Inventory is referred to as the stock of raw materials finished goods and work- in progress. The best planned and managed enterprises survive and efficiency of a company’s operation is directly related to the inventory situation existing within it.

Inventory control enables organization to determine when it is necessary to stock physical goods or commodities for the purpose of specified periods of time. Amount of inventory results to high capital costs, high operating cost and decreased production efficiency when too much space is used while insufficient inventory leads to inability of the firm to meet up with the demand for its product and in severe case leads to shut downs if there occurs a drop or half in supply of raw materials.

According to Oxford Advanced learner’s dictionary, network is a system of broadcasting stations that link up to broadcast the same programs of the same time. Network analysis is a family of related techniques developed to aid management in planning and control of projects scheduling and coordinating various inter - related activities that define a project. In a production of specified duration, network analysis is inter - relationship of the various jobs, or tasks, which make up the overall and obvious identify the critical paths of the production.

1.1 BRIEF HISTORY OF AKA PAINT (NIG) LIMITED

This Industry was developed through the inspiration of Nze B.C Onuoha. He engaged in car selling and paint making business. Due to his real to reduce human suffering, manufacturing in the year 1994 as a limited liability company. It is located at Enyiogugu in Aboh Mbaise. It has three depots located at 139 Wetheral Road Owerri, opposite Timber market Oguta Road Mgbidi and 45 Aba Owerri Road Aba, Abia State respectively. In 1994, the European commission came and help to introduced the company.

The official opening of the company took place in 1995. the objects clause as stated in the memorandum of association of the company is to produce, sale, import, distribute paints other chemical related items. The company has four major department namely production/ quality control department personnel department, account department and sales/ marketing department.

INDUSTRIAL ACTIVITIES

Essentially for local Nigeria market – replacement and original equipment

Exports of car paints.

TYPES OF PAINT MANUFACTURED

- Emulsion paints

- Texcote paints

- Gloss paints

- Car paints

To produce these products several raw materials are needed and in different proportions. Some of the raw materials in puts includes methyl ethyl ketone (MEK) toluene resin, petrol, kerosene, ethylene glycol, etc, these products yield different levels of profit to the company and how to make profits as large possible is mystifying to management. Furthermore, the scarcity of some of these raw materials limits the flexibility of management in production. Other restricting factor as interview disclosed are labour time and demand for the products.

1.2  INVENTORY PROBLEM

An inventory problem is one which seeks to determine when it is necessary to stock physical goods or commodities for the purpose of satisfying demand over a specified period of time. This type of problem aims at knowing how much of the commodity order for and when to make the order. An over stock requires higher invested capital per unit time but less frequent occurrence of shortages and placement of orders. Whereas an under stock decreases the invested capital per unit time but increase the frequency ordering as well as the risk of running out of stock.

1.3  THE NEED FOR AN INVENTORY

The inventory of a company can be described as the totality of stocks of various kinds which include raw materials, partly finished goods and materials, subassemblies, office and workshop supplies and finished goods. The fundamental reason for inventory is that it is physically impossible and economically impracticable for each stock item to arrive exactly when it is needed other reasons are

Anticipating normal demand

Taking advantage of bulk- purchase discounts.

Meeting emergency shortages due to some unforeseen circumstance like strikes breakdown of the firm’s plant or vehicle

Absorbing wastage and unpredictable fluctuation etc.

1.4 INVENTORY COST

(a) Purchase or manufacturing cost :- This is per unit cost of buying or making a unit of production. This includes transportation, clerical and administrative costs associated with the physical movement of bought goods. The unit price of the commodity decreases as the ordered quantity increases.

(b) Holding or carring cost :- This is the cost of carrying item in storage of inventory until it is sold or used. This include

(i) Interest on capital invested in the stock

(ii) Storage costs or changes (rent lighting heating air conditioning etc)

(iii) Insurance security

(iv) Stores staffing equipment maintaince and running costs. Holding cost increase with the level of inventory.

(c) Shortage or penalty or stock out cost :- These are the cost associated with running out of stock. These include

(i) Cost contribution through the best sale called by the stock out

(ii) Loss of future sales because consumers goes elsewhere

(iii) Loss of consumers good will

(d) Setup cost :- This is the cost of placing an order for a commodity from an outside vendor, which is independent of the number of units ordered for

1.5 INVENTORY CONTROL SYSTEM

The general objective of inventory control is to keep stock level so that the combined costs are at a minimum. This could be achieved with factors via

- When to order

- How many to order

The two major systems of establishing these are

(a) Re-order level system

(b) Periodic review system

(a) The Re-order level system is also known as two- bin system its features are

(i) A predetermined re-order level is set fro each item

(ii) The replenishment order quantity is invariably the EOQ (i.e the Economic Order Quantity)

(iii) When the stock level falls to the re- order level, replenishment is issued

(iv) The minimum level is calculated so the management would be warned when demand is above average and accordingly the butter stock is utilized  

(b) Periodic review system this is sometimes called the costant circle system. Its features are

(i) Stock levels for all parts are revived at fixed intervals e.g every week

GET THE COMPLETE PROJECT

Not What You Are Looking For?



For QUICK Help Call Us Now!

+234 813 292 6373


Here's what our amazing customers are saying

JONNAH EHIS
Ajayi Crowther University, Oyo
I was scared at first when I saw your website but I decided to risk my last 3k and surprisingly I got my complete project in my email box instantly. This is so nice!!!
Excellent
MATTHEW NGBEDE
Ahmadu Bello University
I wish I knew you guys when I wrote my first degree project, it took so much time and effort then. Now, with just a click of a button, I got my complete project in less than 15 minutes. You guys are too amazing!
Excellent
Temitayo Ayodele
Obafemi Awolowo University
My friend told me about iprojectmaster website, I doubted her until I saw her download her full project instantly, I tried mine too and got it instantly, right now, am telling everyone in my school about iprojectmaster.com, no one has to suffer any more writing their project. Thank you for making life easy for me and my fellow students... Keep up the good work
Very Good
Stancy M
Abia State University, Uturu
I did not see my project topic on your website so I decided to call your customer care number, the attention I got was epic! I got help from the beginning to the end of my project in just 3 days, they even taught me how to defend my project and I got a 'B' at the end. Thank you so much iprojectmaster, infact, I owe my graduating well today to you guys...
Excellent
Ibrahim Muhammad Muhammad
Usmanu danfodiyo university, sokoto
It's a site that give researcher student's to gain access work,easier,affordable and understandable. I appreciate the iproject master teams for making my project work fast and available .I will surely,recommend this site to my friends.thanks a lot..!
Excellent
Dau Mohammed Kabiru
Kaduna State College of Education Gidan Waya
This is my first time..Your service is superb. But because I was pressed for time, I became jittery when I did not receive feedbackd. I will do more business with you and I will recommend you to my friends. Thank you.
Very Good
Joseph M. Yohanna
Thanks a lot, am really grateful and will surely tell my friends about your website.
Excellent
Merry From BSU
I am now a graduate because of iprojectmaster.com, God Bless you guys for me.
Excellent
Samuel From Ajayi Crowther University
You guys just made life easier for students. Thanks alot iprojectmaster.com
Excellent
Musa From Ahmadu Bello University
Thank you iprojectmaster for saving my life, please keep it up and may God continue to bless you people.
Excellent

HOW TO GET YOUR COMPLETE PROJECT INSTANTLY

  • Select 3 Project Topics of your choice from your Department.
  • Submit the 3 topics to your Supervisor for Approval.
  • Call Our Instant Help Desk on 0813-292-6373 and Get Your Complete Project Material Instantly.
  • All project materials on this website are well researched by professionals with high level of professionalism.

FREQUENTLY ASKED QUESTIONS

How do i choose a Project Topic?

Look for your department and select any topic of your choice

I have a fresh topic that is not on your website. How do I go about it?

How fast can i get a complete project from your website?

Within 15 minutes if the exact project topic is on our website

Is it a complete research project or just materials?

It is a Complete Research Project i.e Chapters 1-5, Abstract, Table of Contents, Full References, Questionnaires / Secondary Data

One of your topics suites my project, but the case study is different. What do i do?

Call Our Instant Help Desk Now: (+234) 813-292-6373 and you will be responded to immediately

How do i get my complete project?

Your Complete Project Material will be sent to your Email Address in Ms Word document format

Can I get my Complete Project through WhatsApp?

Yes! We can send your Complete Research Project to your WhatsApp Number

What if my Project Supervisor made some changes to a topic i picked from your website?

Call Our Instant Help Desk Now: (+234) 813-292-6373 and you will be responded to immediately

Do you assist students with Assignment and Project Proposal?

Yes! Call Our Instant Help Desk Now: (+234) 813-292-6373 and you will be responded to immediately

What if i do not have any project topic idea at all?

Smiles! We've Got You Covered. Chat with us on WhatsApp Now to Get Instant Help: (+234) 813-292-6373

How can i trust this site?

We are well aware of fraudulent activities that have been happening on the internet. It is regrettable, but hopefully declining. However, we wish to reinstate to our esteemed clients that we are genuine and duly registered with the Corporate Affairs Commission as "PRIMEDGE TECHNOLOGY". This site runs on Secure Sockets Layer (SSL), therefore all transactions on this site are HIGHLY secure and safe!