inventory control as an effective tool for cost control in an organization (a case study of Cadbury Nigeria plc.) (110 pages) CHAPTER 1-5

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inventory control as an effective tool for cost control in an organization (a case study of Cadbury Nigeria plc.) (110 pages) CHAPTER 1-5


The topic of this research work is inventory control as an effective tool for cost control in an organization using Cadbury Nigeria plc as a case study. Inventory control can be defined as the implementation of management’s inventory policies in a manner that assures that the goal of inventory management is met. The management of various companies is faced with the problem of at what level inventory should be held in order to have a healthy operation that is optimal stock level that will minimize the cost of stocks the (ordering and holding costs). The researcher objective is to know the effectiveness of inventory control on cost control. In this course of carrying this research work various techniques or methods of data collection were used. They include questionnaires, interviews and observations. A sample size of 73 workers in Cadbury Nigeria plc was also used and was chosen among the number of department/sections of worker using Bowley’s proportional allocation formula. The researcher makes use of three hypotheses in this study to analyze the research project. The researcher made used of Z-test in testing the formulated hypothesis. The researcher used the descriptive statistical tools (tables, figures and percentages) in the presenting and analyzing the data generated from this study. From the analysis, the researcher finds out that effective management of inventory will help a firm to control its cost and contribute to the actualization of a firm organizational goal. The researcher therefore recommends that organization should apply the technique of inventory control with the objective of cost control so as to enable the goal of profit maximization to be attained.


Approval page I

Dedication II

Acknowledgement III

Abstract IV


1.0 Introduction 1

1.1 Background of the study 1

1.2 Statements of the problem 4

1.3 Objectives of the study 5

1.4 Research Questions 5

1.5 Hypothesis of the study 6

1.6 Significant of the study 6

1.7 Scope and limitation of the study 7

1.8 Definition of terms 8

Reference 10


2.0 Review of related literature 11

2.1 Inventory management: Definition of concepts 11

2.2 Problems associated with inventory management 15

2.3 Impacts of improper management of inventory 18

2.3.1 Ideas for improvement 20

2.3.2 Implementation and execution 23

2.4 Benefit of inventory management and control 24

2.4.1 Process of inventory management and control 27

2.4.2 Optimum inventory level 27

2.4.3 Reasons for holding inventory 28

2.5 costs associated with inventories 31

2.6 inventory cost control management 34

2.7 inventory valuation method 37

2.8 Inventory control management and its application 41

2.8.1Technique of inventory control 42

2.9 Historical background of Cadbury Nigeria plc 45

Reference 47


3.0 Research design and methodology 48

3.1 Research design 48

3.2 Sources of data 49

3.3 Research instrument 50

3.4 Reliability/ validity of research instrument 51

3.5 Population of the study 51

3.6 Sample and sampling procedures 52

3.7 Administration of research instrument 55

3.8 Method of data analysis 56

3.9 Decision Criterion for the validation of hypothesis 56

Reference 57


4.0 Data presentation and analysis 58

4.1 Data presentation and analysis 58

4.2 Testing of hypotheses 79


Summary of findings, conclusion and recommendation

5.1 Summary of findings 87

5.2 conclusions 88

5.3 Recommendations 89

Bibliography 91

Appendix 93


In general, inventory control and cost control techniques have become a household name in the business of manufacturing firms, that boast of the possession of goods or stocks, that hope to sell when the demand arises. It is so important to them, such that their survival as a corporate entity, hinges on how they are able to coordinate and control their applications. Inventory is a term that has been explained in various ways by various scholars, inventories are stocks of the product a company is manufacturing for sale and components that makes up the product. They are raw-materials, work in progress and finished goods and they constitute various form of…..(110 pages) ORDER NOW!