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THE
APPRAISAL OF MATERIALS HANDLING MANAGEMENT IN MANUFACTURING FIRMS IN NIGERIA
CHAPTER ONE
1.0 INTRODCUTION
1.1 BACKGROUND OF THE STUDY
The need for
effective and efficient inventory control. Recent advancement and technology in
business activities have generated the need for inventory management and
control. For more than a decade now, inventories were handled by a clerk in a
routine manner without applying the techniques of inventory but in a recent
time, proper attention has been given to inventory management and control.
In the effect of inventory control adequate care
is taken in the assessment of the items cum materials to be hold in stock,
decide the extent of stock holding of items individually and finally regulating
the input and issue of stock into and from store cum warehouses. Any management
that neglects inventory control will definitely run into costs that will
generally reduce its corporate profit. Shortages in inventory will interrupt
production and will further lead to losses. On the other hand if there is
unintentional excess of stocking of materials in inventories, the
organization’s funds will be tied up in stock instead of using it for
profitable purposes. It is of these fact that any organization will decide on
how much and how often to place order in
order to minimize the cost involved and equilibrate the total cost resulting
from excess stocking and under stocking. Therefore the importance of the effect
of inventory control in the modern enterprises cannot be over emphasized.
The brief
history of ABC transport, associated bus company limited operation of ABC
transport commenced operation in road
passenger transportation on February 1st 1993, as an off-shoot of rapid
identities with a view to running a model road transportation system in
Nigeria. In March 2003, capital alliance private equity (GAPE) acquire 30%
shares of ABC transport with the
acquisition, capital alliance (Nigeria) because stake holders in ABC transport,
a partnership that repositioned the company for
greater performance. ABC Transport Operates luxury bus services
according to transportation, its services are specially designed for
distinguishing. Evers who would otherwise use our services. The operations
within Nigeria is carried out in ultra modern terminals with considerable
languages in various cities like Lagos (Jibpwu and Estac), Aba, Owerri,
Port-Harcourt, Abuja, Enugu, Okene, Onithsa and Umuahia etc. ABC buses are
double with the company’s trademark the reindeer. The choice of the render as
the company’s trademark. Symbol was made after a careful study for
peculiarities of the animal, which is strong fast and moves in hard. For the
company’s trademark achievement in transportation, ABC transport was adjudged
the best transporters in Nigeria by the
chartered institute of transport Nigeria and has since their consistently won
the national bus operator of the year award along with other accolade s by
renowned bodies.
1.2STATEMENT
OF THE PROBLEMS
Most
organizations do not realize the essence of importance of maintaining an
efficient and need for inventory control mechanism and because of this, many of
these organizations cannot find their feet in business. Some of the factors
that contributed to their inability to find their feet in business also
include, lack of proper inventory of loads, tieing of capital, loss through
obsolescence and deterioration. At the
same time, shortages of materials have arises at the time when they are
urgently needed and with this operators are delayed. It is based with the
effect of inventory control of the modern enterprises even as it applies to the
ABC transport and also profer solutions through this work.
1.3 OBJECTIVES OF THE STUDY
Inventories
are stock of finished goods and raw materials kept for strategic reasons by
organization. Inventory are necessary to run the organization more efficiently
by keeping the operation at a fair level, rate and maintain optimum stock
levels. The objectives include determine the following; who makes inventory
decision in the ABC transport? If the systems in use in the ABC transport are
working in line with the organizations goal? And where this is not the case, to
help suggest ways of improving on their performances, this study will help the
ABC transport to recognize the problems invent in the management and control of
inventories in the organization and on how to solve the problems.
1.4 RESEARCH QUESTIONS
The
following research questions will be used for the project.
(a) Does ABC transport patronage reduce risk
of transport adulterated passengers.
(b) Does the ABC transport provide variables
than general company.
1.5 SIGNIFICANCE OF THE STUDY
This study
will be of benefit to the following
persons or group of persons:
(a)The
Government: The government will be able to know how resources are being managed
and controlled in the modern enterprise.
(b)The
Modern Enterprise: The modern enterprises will be able to identify areas to
intensify the effect of inventory control measures.
(c)The
Management; They will be in position to access if the inventory target or goals
of the organization are being achieved.
(d)The
Researcher: Any researcher who may so desire to carry out further research on
the topic or related topic.
1.6 SCOPE OF THE STUDY
The
researcher concentrated this work in the ABC transport due to the problems
which are encountered in the course of studying numerous organizations as it
regard to finance. Thus, this study is
limited within the continues of the operations of the ABC transport.
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