INVENTORY CONTROL AS AN EFFECTIVE TOOL FOR COST CONTROL IN AN ORGANISATION

INVENTORY CONTROL AS AN EFFECTIVE TOOL FOR COST CONTROL IN AN ORGANISATION 

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.