Materials Management In A Manufacturing Company (A Case Study Of 7up Bottling Company Plc, Ilorin Plant, Kwara State)

Materials Management
Materials Management
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Materials Management: Past studies have shown that the poor performance of many firms in Nigeria is due to their inability to manage the relationship between suppliers of input and the operation of the firm. This study is therefore designed to examine how manufacturing firms manage their materials.

Secondary data were collected on the inventory of material in 7up bottling company Ilorin plan. Economic order quantity (EOQ model) was used to analyse data collected.

The result shows the cost saving effect of economic order quantity EOQ model on inventory of raw materials for concentrate, sugar, hydrated lime and acciducant as N521939, N 179421, N1115796 N1014656 respectively and for finished product like Mirinda orange, Pepsi, seven up, Mirinda fruity and mountain dew drink are N359235 N98101, N369835, N293813, N1000557

Findings indicate that the method used by 7up company to maximize their inventory of both materials and finished product is not efficient because the naira saved in the course of purchase have more effect on the profit of company in production/selling. This is why purchasing should be cost effective.

Recommendations include an adoption and application of the EOQ model in order to save cost and make their operation more efficient. This will make 7up product more comprehensive and perhaps enable them gain competitive advantage. The conclusion suggest that EOQ model reveals the cost saving and total inventory of materials use in production and effective management and control leads to efficient operation cost.



1.1 Background to the Study

As a manager in a manufacturing company. It is more necessary than ever to improve the overall productivity of the operation while such improvement requires an integrated effort involving all functional areas of the facility, specific actions are required within each functional area one of the functional areas in a manufacturing operation that is critical to the overall productivity of the company is Material management. The material management involves purchasing supplier management, material handling within the facility and extensive coordination among all functional areas of the facility in conjunction with material management sapiens, Jazayeri (1998).
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Once the production process is under way the attention of the operations manager shifts to the daily activities of material management the daily composes materials purchasing, inventory control and work scheduling.
Material management has a philosophy close to that of a modern marketing. In marketing the organization and its staff has to think in a marketing oriented way for example how will customers react to product change? What will be the effect on sales if we alter the packaging? With material management the same principle apply the organization and its entire staff have to consider their decision in relation to how they will after it the material side of the business topics under material management include purchasing, control, transportation, material production, planning stores, inventory control Bret (2001). Materials Management

Therefore, the main point of materials management is to satisfy the need to all operating system such as manufacturing production line, promotional activities and physical distributor times. It is the operation as the customer, manager must work around the system till everything his and needs are satisfied. The material manager organization and it entire staff should however consider their decision in relation to how they will affect the materials side of the business. It is in view of the above stated facts that this study is being carried out using 7up Bottling Company Plc Ilorin plant a manufacturing company to study the issue of material management. Materials Management

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