Comparative Study of Inventory Control In Sharon Paints Industries Limited, Udi And Herbertex Paints Company Limited, Emene, Enugu.

Abstract

The aim of this research is to do a comparative study of inventory control in paint manufacturing industries and explore ways by which the organizations can minimize costs associated with holding resources in inventory reserve. A structured questionnaires was designed and used for data collection of this study. The raw data percentage presentation, chi-square analysis, contingency analysis, frequency counts analysis and lexicographic model were used in analyzing the data collected. Chi-square analysis technique was used in testing whether properly applied principles of cyclical order quantity model of inventory control do not permit continuous flow of products to customers, continuous flow of production input materials, increased productivity, effective flow of works in the factory and increase in organizational profits. The result showed that properly applied principles of cyclical order quantity model of inventory control certainly permit continuous flow of products to customers, continuous flow of production input materials, increased productivity, effective flow of works in the factory and increase in organizational profits. Chi-square analysis was also used in evaluation if properly employed principles of fixed order quantity system of inventory control do not assure continuous flow of inputs materials, decrease in overheads, check in abrupt halt in production operations and ensure optimal inventory levels. The result revealed that properly employed principles of fixed order quantity system of inventory control assures continuous flow of input materials, decrease in overheads, check in abrupt halt in production operations and ensure optimal inventory levels. Chi-square analysis was applied to examine whether appropriate adoption of the principles of the materials requirement planning method of inventory control do not reduce costs associated with holding resources in inventory reserve, decrease in overheads and check in halt in production schedule. The result indicated that appropriate adoption of the principles of the materials requirement planning method of inventory control certainly reduce costs associated with holding resources in inventory reserve, decrease in overheads and check in halt in production schedule. Chi-square analysis was employed to determine if proper application of the principles and concepts of ABC inventory classification analysis techniques will reduce wasteful payment of the management's attention to insignificant inventory items, ensure uninterrupted material flow, increase ability to deliver the required materials as scheduled and check stock out of essential resources. The result indicated that properly applied principles and concepts of ABC inventory classification analysis techniques indirectly reduce wasteful payment of the management's attention to insignificant stock items, ensure uninterrupted material flow, increase ability to deliver the required materials as scheduled and check stock out of essential resources. Thus ABC inventory classification analysis techniques is observed to be secondary inventory control activity. Similarly, the same chi-square was used to ascertain if correct use of the concepts of wison economic order quantity model of stock control do not reduce ordering and carrying costs, determine the proper optimal stock and re-ordering levels, check increase in indirect material costs and reduce the problems of frequent order for large quantities of lower cost materials rather than high cost materials. The result of the analysis revealed that correct use of the concepts of Wilson economic order quantity model of inventory control will reduce ordering and carrying costs determine the proper optimal stock and re-ordering level, check increase in indirect materials costs and reduce the problems of frequent order for large quantities of lower costs materials rather than high cost materials. Also Chi-square was used to evaluate if correctly employed inventory control records and procedures do not stem the material pilfering, receipt of poor quality goods into the stores, loss of organizational profits, inconsistency in inventory records and abrupt halt on production operations. The result revealed that correctly employed inventory control records and procedures will stem the material pilfering, receipt of poor quality goods into the stores, loss of organizational profits, inconsistency in inventory records and abrupt half on production operations.