Tag Archives: Inventory.

DEVELOPMENT OF A DYNAMIC PROGRAMMING MODEL FOR OPTIMIZING PRODUCTION PLANNING (Published)

Production planning is the backbone of any manufacturing operation, and its main objective is to determine the quantity of products to be produced and inventory level to be carried from one period to the other, with the objective of minimizing the total costs of production and the annual inventory, while at the same time meeting the customers’ demand. A mathematical model was developed for a multi-product problem using Dynamic Programming approach and the solution procedure proposed by Wagner and Whitin was adopted. The model is very useful in solving a problem with multi-stage problem, a particular situation in which there is appreciable variation in average periodic demand and availability of raw materials among the different periods. It also stipulates the minimum quantities of the product to produce per period and the corresponding inventory levels such that total production cost is minimized over the planning periods

Keywords: Cost, Dynamic, Inventory., Minimum, Model, Production

IMPACT OF WORKING CAPITAL ON THE PROFITABILITY OF THE NIGERIAN CEMENT INDUSTRY (Published)

This study empirically examined the impact of working capital management (Measured by: the number of days accounts receivable are outstanding-DAR, the number of days inventory are held-DINV, and the cash conversion cycle-CCC), on profitability (measured by return on assets-ROA) of Nigerian Cement Industry for a period of eight (8) years (2002-2009). Data from a sample of four (4) out of the five (5) cement companies quoted on the Nigerian Stock Exchange (NSE) were analysed using descriptive statistics and multiple regression analysis. The study found an insignificant negative relationship between the profitability (measured by ROA) of cement companies quoted on the NSE and the number of days accounts receivable are outstanding (DAR). The study also found a significant negative relationship between the profitability of these cement companies and the number of days inventory are held (DINV). The study finally revealed a significant positive relationship between the profitability and the cash conversion cycle (CCC). The study concludes that, the profitability of cement companies quoted on the NSE during the study period is influenced by DINV and CCC. The study therefore recommends that managers of these cement companies should manage their working capital in more efficient ways by reducing the number of days inventory are held to an optimal level in order to enhance their profitability as well as create value for their shareholders. Managers of Nigerian cement companies should also improve on their cash flows, through the reduction of their cash conversion cycle

Keywords: Accounts receivable, Cash conversion cycle, Inventory., Nigerian Cement Industry, Profitability, Working Capital Management

THE IMPACT OF INFORMATION COMMUNICATION TECHNOLOGY ON INVENTORY CONTROL SYSTEMS IN TRANSPORT ORGANIZATION: A CASE STUDY OF KENYA FERRY SERVICES (Published)

With the increasing focus in enhancing supply management chain through use of the rapid development of Information and Communication Technology, businesses are seeking to develop and organize strategic, efficient and world-wide inventory control system for its use. In order to promote such global inventory control system, which are also compatible with sustainability objectives, organizations need to develop and implement effective systems both individually and collectively. This has resulted to Modern inventory control as a result of improved technology being one of the most strategic initiative embraced by organization in partnering initiatives for encouraging collaboration and information sharing among trading partners (Angulo, 2007). The main objective of the study was to investigate the impact of technology on inventory control systems in Kenya ferry services. The study adopted a descriptive research with survey of a total of 220 and applied a stratified random sampling technique to select a sample size of 60 respondents. Questionnaires were used as the main data collection Descriptive statistics analysis method was to analyze the gathered data. The study concluded that technology has had bigger impact on inventory control in terms of efficiency, ease of accessing information and accuracy thereby affecting organizational performance. The study recommends that modern inventory control systems should be well implemented since it forms a platform for ease of evaluating risk in which the organization invest a lot of money in purchasing of inventory. Additionally the study recommends that organization should integrate all its inventory management functions with information communication technology as well.

Keywords: Efficiency, ICT, Integration, Inventory., Procurement, Supplier

Development of a Dynamic Programming Model for Optimizing Production Planning. (Review Completed - Accepted)

Production planning is the backbone of any manufacturing operation, and its main objective is to determine the quantity of products to be produced and inventory level to be carried from one period to the other, with the objective of minimizing the total costs of production and the annual inventory, while at the same time meeting the customers’ demand. A mathematical model was developed for a multi-product problem using Dynamic Programming approach and the solution procedure proposed by Wagner and Whitin was adopted. The model is very useful in solving a problem with multi-stage problem, a particular situation in which there is appreciable variation in average periodic demand and availability of raw materials among the different periods. It also stipulates the minimum quantities of the product to produce per period and the corresponding inventory levels such that total production cost is minimized over the planning periods

Keywords: Cost, Dynamic, Inventory., Minimum, Model, Production

Impact of working capital on the profitability of the Nigerian cement industry (Review Completed - Accepted)

This study empirically examined the impact of working capital management (Measured by: the number of days accounts receivable are outstanding-DAR, the number of days inventory are held-DINV, and the cash conversion cycle-CCC), on profitability (measured by return on assets-ROA) of Nigerian Cement Industry for a period of eight (8) years (2002-2009). Data from a sample of four (4) out of the five (5) cement companies quoted on the Nigerian Stock Exchange (NSE) were analysed using descriptive statistics and multiple regression analysis. The study found an insignificant negative relationship between the profitability (measured by ROA) of cement companies quoted on the NSE and the number of days accounts receivable are outstanding (DAR). The study also found a significant negative relationship between the profitability of these cement companies and the number of days inventory are held (DINV). The study finally revealed a significant positive relationship between the profitability and the cash conversion cycle (CCC). The study concludes that, the profitability of cement companies quoted on the NSE during the study period is influenced by DINV and CCC. The study therefore recommends that managers of these cement companies should manage their working capital in more efficient ways by reducing the number of days inventory are held to an optimal level in order to enhance their profitability as well as create value for their shareholders. Managers of Nigerian cement companies should also improve on their cash flows, through the reduction of their cash conversion cycle

Keywords: Accounts receivable, Cash conversion cycle, Inventory., Nigerian Cement Industry, Profitability, Working Capital Management