Inventory Control Models In The Private Sector Of Nigerian Economy A Case Study Of Cutix Plc Nnewi, Nigeria.

Chikwendu, C. R. Department of Mathematics, Faculty of Physical Sciences,

Nnamdi Azikiwe University, Awka. Nigeria.

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Emenonye, C. E. and Nwankwo, C. Department of Mathematics, Faculty of Physical Sciences,

Nnamdi Azikiwe University, Awka. Nigeria.

IM24

Abstract

This work addressed the issues of Inventory control as regards to private sectors of Nigerian economy using CUTIX PLC Nigeria as a case study. In business organizations, management will be able to control inventory levels, maintain optimum levels of inventories and minimize costs generally if they apply efficient inventory control models in their inventory systems.

This work discussed and applied the basic deterministic inventory control models in inventory control system of CUTIX PLC, Nigeria.

The work showed that there is need for the company to improve in the areas of economic order quantity for Copper rod, Aluminum rod, PVC Resin and CaCO3.

Under the economic batch quantity application when the replenishment is gradual, it was discovered that the economic batch quantity for 1.5 mm2 single core cable is 1373 coils but the company applies what they called minimum run.

The minimum run for 1.5 mm2 single core cable is 300 coils. It was also discovered that the reorder levels for Aluminum rod, Copper rod and PVC Resin were 50, 53 and 31 tons respectively. This work also discovered that the company is operating on service level of 93% with respect to Copper rod provision. Hence, they have 7% chance of stock out during each lead time. 

Keywords—Inventory, Model, EOQ, EBQ, Costs, Deterministic, Reorder, CUTIX PLC, Demand.