ANALYSIS OF LOGISTIC PROBLEMS IN A MANUFACTURING INDUSTRY, A CASE STUDY OF CHAMPION BREWERY, UYO

ABSTRACT

Logistic problems constrain the optimal utilization of human and capital resources of manufacturing industry for the maximization of profit. This study was undertaken to isolate the logistic problems that confronts manufacturing firms. It was an empirical study of Champion Breweries Plc. Uyo. The study made use of primary data obtained, from administration of questionnaires. The data was analysed using frequency distribution/simple percentage and ordinary least square (OLS) multiple regression method. The empirical results should that: (1) Optimal stock quantity was positively and significantly affected by stock control personnel and adequate stock warehouse, and positively but insignificantly by inventory management system (2) quality of product was influence positively but insignificantly by quality of raw material and production technology, and positively but significantly by quality control personnel, and (3) transport system was negatively and significantly affected by poor road conditions, and positively but insignificantly by vehicle management and condition of vehicles. It was recommended that the company either overhaul or replace the inventory management system, production technology and vehicle management system.

TABLE OF CONTENTS ﾿

Title Page ﾿ i

Declaration ﾿ ii

Certification ﾿ iii

Dedication ﾿ iv

Acknowledgement ﾿ v

Table of Contents ﾿ vi

List of Tables ﾿ x

Abstract ﾿ xi

CHAPTER ONE 

INTRODUCTION ﾿

1.1 ﾿ Background of the Study ﾿ 1

1.2 ﾿ Statement of Problem ﾿ 4

1.3 ﾿ Objective of the Study ﾿ 5

1.4 ﾿ Research Questions ﾿ 5

1.5 ﾿ Research Hypothesis ﾿ 6

1.6 ﾿ Significance of the Study ﾿ 6

1.7 ﾿ Scope and Limitation  of the Study ﾿ 7

CHAPTER TWO

LITERATURE REVIEW 

2.1 ﾿ The concept of Logistics in Manufacturing Industry ﾿ 8

2.2 ﾿ Logistic Operation Functions ﾿ 10

2.2.1 ﾿ Order taking and Forecasting Demand ﾿ 10

2.2.2 ﾿ Provision ﾿ 11

2.2.3 ﾿ Inventory ﾿ 14

2.2.4 ﾿ Transportation ﾿ 14

2.2.5 ﾿ Warehousing ﾿ 16

2.3 ﾿ Component of Logistics ﾿ 17

2.3.1 ﾿ Logistic Services ﾿ 17

2.3.2 ﾿ Information System ﾿ 17

2.3.3 ﾿ Infrastructure System ﾿ 18

2.4 ﾿ Logistic Problem Facing Manufacturing Firms ﾿ 18

2.5 ﾿ Logistics Field ﾿ 19

2.5.1 ﾿ Procurement Logistics ﾿ 19

2.5.2 ﾿ Production Logistics ﾿ 20

2.5.3 ﾿ Distribution Logistics ﾿ 20

2.5.4 ﾿ Disposal Logistics ﾿ 20

2.5.5 ﾿ Reverse Logistics ﾿ 21

2.5.6 ﾿ Green Logistics ﾿ 21

2.6 ﾿ Logistics Outsourcing ﾿ 21

2.6.1 ﾿ Third Party Logistics ﾿ 22

2.6.2 ﾿ Fourth Party Logistics ﾿ 22

CHAPTER THREE

RESEARCH METHODOLOGY

3.1 ﾿ Design of the Study ﾿ 23

3.2 ﾿ Area of Study ﾿ 23

3.3 ﾿ Population of the Study ﾿ 23

3.4 ﾿ Sampling Technique and Method ﾿ 23

3.5 ﾿ Determination of Sample Size ﾿ 24

3.6 ﾿ Measurement of Instrumentation ﾿ 25

3.7 ﾿ Sources of Data ﾿ 25

3.8 ﾿ Validity and Reliability of Instrument ﾿ 25

3.9 ﾿ Data Presentation and Analysis ﾿ 26

CHAPTER FOUR ﾿

PRESENTATION AND DISCUSSION OF RESULT

4.1 ﾿ Rate of Return of Completed Questionnaires ﾿ 28

4.2 ﾿ Socio-demographic Characteristics of the Respondents ﾿ 29

4.2.1 ﾿ Age ﾿ 30

4.2.2 ﾿ Gender ﾿ 31

4.2.3 ﾿ Marital Status ﾿ 31

4.2.4 ﾿ Educational Qualification ﾿ 31

4.2.5 ﾿ Departments of Respondents ﾿ 32

4.2.6 ﾿ Rank of Respondents ﾿ 33

4.3 ﾿ Responses to items in the questionnaires ﾿ 34

4.3.1 ﾿ Logistic Problem of Product Stocking ﾿ 34

4.3.2 ﾿ Efficiency of Inventory Management System ﾿ 35

4.3.3 ﾿ Effectiveness of Personnel Handling the Stock in the Company ﾿ 36

4.3.4 ﾿ Adequacy of Stockholding Capacity of Company Warehouse ﾿ 37

4.3.5 ﾿ Quality of Products of Champion Breweries ﾿ 37

4.3.6 ﾿ Availability of Raw Materials ﾿ 38

4.3.7 ﾿ Quality of Raw Materials ﾿ 39

4.3.8 ﾿ State of Machines/Technology used in Production ﾿ 40

4.3.9 ﾿ Effectiveness and Experience of Staff of Quality Control Department ﾿

4.3.10 ﾿ Challenges of Transportation as a Logistic Problem ﾿ 42

4.3.11 Effect of Bad Roads on Movement of Raw Materials and Finished Goods ﾿

4.3.12 ﾿ Effect of Condition of Vehicles on the Transportation of Goods ﾿ 44

4.3.13 Effectiveness in Management of Vehicles ﾿ 44

4.4 ﾿ Presentation and Interpretation of Regression Results ﾿ 45

4.4.1 ﾿ Relationship between Inventory Management System, Stock Control Personnel Adequacy of Stock Warehouse and Optimal Stock Q

4.4.2 ﾿ Relationship between Quality of Raw materials, Production Technology/machine, Quality Control Personnel and Quality of produ

4.4.3 ﾿ Relationship between state of Road Conditions, Effectiveness of Vehicle Management, Condition of Vehicles and Transportation System ﾿ 4.5 ﾿ Discussion of Result viz-a-viz the logistic problems of Champion Breweries Plc ﾿

CHAPTER FIVE

 SUMMARY, CONCLUSION AND RECOMMENDATION 

5.1 ﾿ Summary ﾿ 56

5.2 ﾿ Highlights of Major Findings ﾿ 58

5.3 ﾿ Conclusion ﾿ 59

5.4 ﾿ Recommendation ﾿ 60

﾿ References