INVENTORY MANAGEMENT IN DELTA ALLIED WIRE INDUSTRIES LIMITED ASABA
AbstractA good inventory system reduces production cost and consequently increases profit. Optimum management of inventory in the Delta – Allied Wire Industries Limited was studied in this research. The information needed was obtained through questionnaire and interviews of key staff of the company. Data collated were recorded for the operational 5 years period (1997 – 2001) under review and customers’ handling processes equally studied for improvement. The data collated were collated were analyzed using the Economic Order Quantity (EOQ) model under constant demand, non-instantaneous receipt as well as other possible scenarios. Results showed that if the order had been reduced from 12 per year to 2 or at most 5 per year savings of ?602, 876 to ?2,977,253 could have been made under constant demand. In addition, the company will have even greater saving if it encourages customers to purchase directly from the company than through the warehouses, thereby reducing the carrying cost. Recommendations based on the findings were made to the company for inclusion in future financial management planning and control.
The contents of the articles are the sole opinion of the author(s) and not of NIJOTECH.
NIJOTECH allows open access for distribution of the published articles in any media so long as whole (not part) of articles are distributed.
A copyright and statement of originality documents will need to be filled out clearly and signed prior to publication of an accepted article. The Copyright form can be downloaded from http://nijotech.com/downloads/COPYRIGHT%20FORM.pdf while the Statement of Originality is in http://nijotech.com/downloads/Statement%20of%20Originality.pdf
For articles that were developed from funded research, a clear acknowledgement of such support should be mentioned in the article with relevant references. Authors are expected to provide complete information on the sponsorship and intellectual property rights of the article together with all exceptions.
It is forbidden to publish the same research report in more than one journal.