THE IMPACT OF INVENTORY CONTROL SYSTEM ON PUBLIC ENTERPRISES PERFORMANCE IN NIGERIA: A CASE STUDY OF ABUJA URBAN MASS TRANSPORT COMPANY

THE IMPACT OF INVENTORY CONTROL SYSTEM ON PUBLIC ENTERPRISES PERFORMANCE IN NIGERIA: A CASE STUDY OF ABUJA URBAN MASS TRANSPORT COMPANY.


BY
ADEFOLARIN A. OLAMILEKAN
Development Researcher
Email:[email protected],[email protected]
Tel: 08134232272, 08073814436

ABSTRACT
This research work explores the impact of inventory control system on public enterprises, using the Abuja Urban Mass Transport Company as case study. As investment in business enterprise inventory needs to serve the purpose of maximize resources utilization. Inventory constitutes the most significant part of current assert of larger majority of Nigeria enterprises ventures. Because of the relative largeness of inventories maintained by organizations, considerable sum of an organization's funds is being committed to them. It thus become absolutely/imperative to manage inventories efficiently so as to avoid the cost of changing production rates, sub-contracting, unnecessary lost of sales and back order penalties during peak demand. The problem of poor system of inventory control have been identified to include overstatement of gross margin, overstatement of net income, over-statement of current assets, poor decision making, procurement challenges etc. This problem may eventually lead to organizational failure and poor return on resources investment. The main objective of this study is to determine whether or not inventories in the Abuja Urban Mass Transport company can be evaluated and understood using the various existing tools to optimization in inventory control. The study methods employed include the chi-square method. It is observed that inventory control has continued to play a leading role in determining the survival of any organization. To a great extent a highly proportion of human, material and financial is usually tied up in inventory. Inventory is classified into raw materials, work – in – progress, finished goods and assets, the process of effective inventory management involve the determination of the value of inventory transparency and accounting purposes. In conclusion, a proper control of inventory has a positive impact on an organization performance and productivity, this is because inventory control improves the efficiency, effectiveness and enhances prudency in managerial decision making. The answer to the fundamental question of how best an organization which handles inventory can be efficiently run is provided for in the analysis and findings of the study. Consequently, recommendations in regular physical verification of stock through the use of perpetual inventory system is made, enlightenment on the importance of proper inventory control system to all supervisors and timing of material, at the most favorable price conclude the research study.


CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND TO THE STUDY
Just like any investment in enterprises every public or private organization requires resources to carry out its activities and set objectives. These resources play vital role in the survival and success of any organization. These resources could be human or material. The material resources are known as inventories and there are of three types in the manufacturing or services business and enterprises:- Raw materials, goods – in process, services, finished goods, infrastructure inventory (Ihunda, 2000).
Inventory control of pivotal in effective and efficient organizations, it is also vital in the control of materials and goods that have to be held (or stored) for later use in the case of service. The principle goal of inventory control involves having to balance the conflicting economic of not wanting to hold so as to guide against the incurring of cost such as storage, spoilage, pilferage and obsolescence and the desire to make items or goods available when and where required (quality and quantity wise) so as to avert the cost of not meeting such requirement (Anyanwu and Chima, 1999).
Drury (1996) defines inventory as a stock of goods that is maintained by a business in anticipation of some future demand. This definition was also supported by Schroeder (2000) who stressed that inventory control has an impact on all business functions, particularly operations, marketing, services accounting and finance.
Meigs (1987) defines inventories as the aggregate of those items of tangible property which are:
Held for sale in the ordinary course of business:
Are in process of production for sale:
To be currently consumed in the production of goods and service to be available for sale.
Inventory control has a very important effect on an organizations finance corporate performance and human resources on firm or public enterprises.
Hermanson (1992) stated that an organization can only prepare accurate income statement, statement of owner's equity, statement of cost of goods manufactured and balance sheet only if the organization has correctly values it inventory.
Net income, for a merchandising organization depends on the valuation and control of ending inventory and for a manufacturing firm, on the valuation of the finished goods and services inventory will lead to an over statement of cost of goods sold. This would eventually result in an overstatement of Gross Margin and Net Income, Current Assets, Total Assets and owner's capital. Moreover, when an organization misstates its ending inventory in the current year, the organization carried misstatement into the next years, the beginning inventory amount for next year. Also an error in one periods ending inventory automatically causes an error in the opposite direction in the next period (Braid, 2000).
The above underscores the important role played by inventory valuation in determine the performing of a public enterprises. Every public enterprises has the objective of welfare service, not for profit making but the management put in a lot of effort in order to effective achieve this objective.
According to Inanga (1990) in a business organization, the underlying motive of its economic activities is profit making. It is the return received on a business organization undertaking after all operating expenses have been met and deducted from the sales made for a specific period "profit occurs when there is excess of the value of output over the cost of inputs (resources) used by an organization. When the reverse happens. It is a loss profit is the main objective of business organization like public enterprises that are set up for charitable or welfare purpose and is classified as "non-profit organization".


The performance of an organization is dependent on a number of factors (both internal and external) inventory control, being one of the tools that internally determine the performance and profitability of public enterprises, also determines how efficient an organization management achieve it goals. It against this backdrop that we undertake this research work. This research work will, therefore examines the impact of inventory control system on public enterprises performances in Nigeria, using the Abuja Urban Mass Transport Company. The main purpose of this study is to determine the effect of inventory system on public enterprises performance. Public enterprises could benefit more inventory control system as it brings about cost control and efficiency of both human and material resources.
1.2 STATEMENT OF THE PROBLEM
Due to the current rate of business failure there is an upsurge of interest to why some public enterprises succeed and why some fails. As the blood of an organization, how can inventory be properly valued? Also, what role does this control of inventory play in enhancing the performance and managerial efficiency of public enterprises? Many business organization due to lack of proper inventory control suffer great loses. Some organizations have gone under due to the negative impact of either over-control or under –control of their inventory.
The aim of an inventory system is to minimize the cost of an inventory that is holding whilst at the same time maintaining a certain level of customer services. Clearly, there are some problems in having either too little inventory or high inventory. Basically, there are three reasons why inventory should be control and held. These are: Transaction motives, precautionary motives and speculative motives. These motives are pattered towards the Keynesian theory of holding money which entails that: business hold inventory in form of stock for transaction in order to meet the day to day demand of their customers, and precautionary so as to avoid situation of stock out and


lastly speculative in order that they may gain out of an unprecedented situation. Speculative and precautionary motive are both vital to the Abuja Urban Mass Transport Company.
This research work intends to solve the problems that are associated with the keeping of either a low level of inventory or a high level of inventory. It has been observed that there are problems associated with either of the levels. A further problem in inventory control system is the cost that is incurred in providing service to customers. This work however intends to highlight the probable solution to this. Inventory control systems are primarily held to ensure nothing is out of stock, for service or sale. The problems now arise of either to hold high – level of stock. Lastly, the problem of estimating the cost of inventory is a major constraint on inventory control system. As there are several method of stock, resources estimation or valuation.
Hence, for public enterprises to excel in performance efficiency, profitability and managerial protectiveness in decision – making, there is need for the inventories of that organization to be properly controlled. There is also a need for a relationship to exist between inventories control efficiency of a public enterprises management.
1.3 OBJECTIVES OF THE STUDY
The general objectives of the study is to determine the effect that intervention valuation has on the performance, managerial efficiency and customers satisfaction of the Abuja Urban Mass Transport Company with a view to suggestions some measure of improving inventory control system.
To meet it general objective, the study will focus on the following specific objectives;
To inquire the inventory control system used in Abuja Urban Mass Transport Company.
To find out the level of consistency in the sued of this system and to see if it conforms to generally accepted inventory country principles.


To ascertain the impact of different inventory control system on an organizational performance and managerial efficiency.
To determine the problems associated with inventory control at Abuja Urban Mass Transport Company.
1.4 RESEARCH QUESTIONS
Does the inventory control system used by an public enterprises affect the public enterprises performance?
Does inventory control system affect management decision making?
How consistent do public enterprises in Nigeria use inventory control system.
What are the problems associated with inventory control in Abuja Urban Mass Transport Company?
1.5 RESEARCH HYPOTHESIS
In order to ensure objectives of the research and also provide answer to the research problems, the following research hypotheses are formulated:-
Ho: Inventory control system does not improve the Abuja Urban Mass Transport Company performance.
H1: Inventory control system improves the Abuja Urban Mass Transport Company performance.
Ho: Inventory control system does not enhanced efficiency in managerial decision making.
H1: Inventory control system enhances efficiency in managerial decision.
1.6 SIGNIFICANCE OF THE STUDY
Inventory control system is an important aspect of running any business organization be it manufacturing, service oriented or merchandising. This is because when there is a proper control

of inventory, the organization will be successful while improper inventory control system would lead to severe losses. Therefore, inventory control system is of primary importance in the affair of any public enterprises or corporation.
This research will show the various method and their effects on managerial efficiency and public enterprises performance. This will help the management of the Abuja Urban Mass Transport Company the government, manufacturing, merchandising, individuals, researcher and other interested users to select and apply suitable inventory control system.
This study would be of further great value as a reference material to student, researcher and other interested persons who may wish to carry out a research on inventory system in any form.
1.7 SCOPE AND RECOMMENDATION
The study is restricted to the Abuja Urban Mass Transport Company. It will deal only with inventory control system and its corresponding effects on the management efficiency and performance of Abuja Urban Mass Transport Company. This research will likewise be created on the relevant department if the public enterprises namely; purchasing, stores human resources, customers service, accounting among others.
The research of this magnitude is not without some limitations. The speed and cost of getting material /data have limited effect on the study, to this end, the bottle neck associated with some of the organization contacted for materials actually slowed down data gathering and analysis.
The above limitations does not however in any way nullify the validity and reliability of the conclusions that have been reached in this research, it only makes room for unavoidable errors.
1.8 DEFINITION OF TERMS
INTERVENTORY: Is seen as the aggregate of those items of tangible property which are to be currently consumed in the production of goods and service to be available


for sale or servicing. It also includes raw materials, work in progress and finished goods.
INTERVENTORY CONTROL: Is defined as one of means to determine internally the performance and profitability of an organization it is the whole process by which materials are made available when and where it is required. It is the system acquisition, management and requisition of stock in an organization.
PERFORMANCE: This about employee input-output measured relationship. Performance is employee productivity.
MANAGEMENT: This is made up of top and middle level management. Top management includes shareholders, boards of directors and managing director while the middle management includes heads of department, managers, deputy and assistant managers.
TOP MANAGEMENT: This is management paradigm in which decision starts from highest echelon to the lowest echelon of an organization, the participation of employees in decision making extremely or does not exist.
BOTTOM-UP MANAGEMENT: This is modern management paradigm in which decision making starts from the lowest echelon to the highest echelon of the organization. This encourages brainstorming between the management and the employees before decisions are taken on a particularly issues, sentiment it is called industries democracy.
MOTIVATION: This describes the level of desire workers feel to perform, regardless of the level of joy or happiness.
HUMAN CAPITAL: This refers to the skills, knowledge and experience possessed by an individual, this formed the terms of terms of value or cost to an organization.
DECISION MAKING: It is cognitive process resulting in the selection of a belief or a course of action among several alternative possibilities.
STOCK KEEPING UNIT: It is a unique combination of all the components that are assemble into the purchasable item.
PRODUCTIVITY: This is a measure of the efficiency of production, that is of production's capability to create income, which is measured by the formula real output value minus real input value.
EFFICIENCY: It about time management and limiting wastages in resource
EFFECTIVENESS: It also about quality use of resources and obtaining good result





REFERENCES
Anyanwu, A. and Chima, B.O (1999) Introduction to Business Administration. Enugu: Dran Alobe Publication.
Braid, J.J (2000) The theory and practice of cost accounting: London Spring field Publishers.
Drury, C. (1987) Management and cost Accounting (3rd ed) London Chairperson and Hall.
Hermanson, S.T (1992) Management Performance Index and Public Enterprises. New York: Friesland Spring Books.
Ihunda, C.C (2000) Management Information System, Springfield Publishers.
Inanga, P. (1990) Organizational Profitability and Managerial efficiency, Lagos: Host Print Book.















CHAPTER TWO
LITERATURE REVIEW
2.1 INTRODUCTION
Inventory is often the largest and most important asset owned by organization and it forum a very important and major asset of most manufacturing and non-manufacturing organizations, hence it is very expedient that stocks, material, resources on inventories are properly and adequately costed, valued and control for the elimination of the deficiency that arise from poor inventory control such as managerial inefficiency, poor decision making, low performance etc.
In This chapter, we shall review the work of some notable and outstanding authors and scholars on inventory control system. We shall also look into the various types of inventory, the alternative inventory system available and other related areas.
2.2 CONCEPTUAL CLARIFICATION
The word inventory is used synonymously with stock, however while inventory is an American terminology, stock is a British term and both words mean the same thing. Inventory also means listing or record of materials, resources, merchandise at hand (Istranet, Al, 1973). According to Nikotai and Bazazley (1994), inventories are the assets of a company that are held in the ordinary course that are held in the ordinary course of business. They are also used in the process of production for sale and for use in the production of goods and services to be made available to customer and clients. The categories of inventories discussed in the curse of this study includes any assets that are not sold in the normal course of business such as marketable securities, properties, equipment, fuel and machineries which the company intend not to sell, but for use.
Bessong (2005) define inventory control as the system used in form to control the form investment in stock which deals with recording and monitoring of the stock level as well as forecasting future demands and deciding when and how to order. It is also a method of ensuring

that the right quality and quantity of the relevant stock is available at the right time and at the right place. Morris (1995) stressed that inventory control in its broadest perspective is to keep the most economical amount of one kind of assets in order to facilitate an increase in the total value of all assets of the organization – human and material resources.
Keth et al (1994) in their text also stated that the major aspect of inventory control system is to inform managers how much of a good to re-order, when to re-order the good, how frequently orders should be placed and what the appropriate safety stock is for minimizing stock out. This, inventory control system has a very important effect on an organization finance corporate profitability, firm performance and productivity.
2.2.1 FUNCTIONS OF INVENTORY CONTROL SYSTEM
The inventory control system functions are important for the following reason: As stated in Adeniji (2008)
Ensuring that raw materials are available for production and service purpose.
Ensuring that furnished goods are available for disposition to customers.
Enabling work and service in progress to be valued.
Controlling the amount of cash tied up in stock.
Helping to control wastage and pilferage of material.
2.2.2 CLASSIFICATION OF INVENTORY
Inventory classification alternate depending on the type of business. In this context, it is classify into service business inventory, merchandise inventory and manufacturing inventory. However, our concern here is the service business inventory, since our case study is public transport enterprises.



SERVICE BUSINESS INVENTORY
This are inventories of a service business provides service instead of goods to customers. Goods service business sells are intangible, which you cannot touch. This service business inventories consist of:
Equipments inventory: These are tangible goods purchase or distained in other ways and on hand for direct use in providing service to customers.
Fuel and Diesel Inventory: These are tangible raw materials purchased to be use in the running of equipment and machinery.
Work – in – progress Inventory: Goods requiring further process, usually value at the sum of direct material, direct labour and allocated servicing overhead cost incurred to date.
Human and Material Inventory: These tangible resources hired or purchased that is mean in the furtherance of service provided for customers. They help for perform service and usually valued at the sum of direct material, direct labour and allocated overhead current and capital expenditure.
2.2.3 OBJECTIVES OF INVENTORY CONTROL SYSTEM
Duckman et al (1989) states that basically; inventory control system purpose service following objectives:
To develop a monetary value for its inventory reported on the balance sheet, i.e to establish the unit cost of the inventory and determining where cost should be included.
To identify good and materials available during the period at the end of a business year.
To obtain management commitment through vision, strategy, short and long-term goals and objectives.


It allows feasibility in service business, merchandising and manufacturing scheduling as well as to ensure one to smoothing irregularities in supply e.g seasonal material product.
To regulate the investment in inventories at the lowest point consistent with the operating services, sale and financial requirement of an organization.
2.2.4 TYPES OF INVENTORY CONTROL SYSTEM
There are basically two types of inventory control system through the third system is derived from the other two systems. However, organizations may develop a system to suit their organization which contains elements of the two basic system (Adeniji, 2008).
Re-order Level System: This system is also known as the two – bin system, below are its characteristics.
A pre-determined re-order level is set for each item.
When the stock level falls to the re-order level a replenishment order is issued.
The replenishment order quality is the Economic Order Quality (EOQ).
Organizations operating the re-order level system maintains stocks record with calculated re-order levels which trigger of the required replenishment order.
Stock is segregated into two bins and stock is drawn from the first bin and replenishment order issued when it becomes empty.
Periodic Review System: It is also called the constant cycle system with the following characteristics:
When necessary, a replenishment order is issued.
The quantity of the replenishment is not a previously calculated economic order quantity (EOQ) but based on the likely demand until the next review.
The replenishment order quantity seeks to bring stocks up to a predetermined level.
The effect of the system is to order variable quantities at fixed intervals compared with the re-order level system.
Hybrid System: This is a system which an organization may adopt to suit the organizations which contain the element of both systems. The periodic review and the re-order level system, because these system might likely have some variations, it serves as a check on the other two system discussed above.
2.2.5 BENEFITS OF EFFECTIVE INVENTION CONTROL SYSTEM
According to Effiong (1994), the benefits of effective inventory control system are as follows:
It enables material to be produced in economic quantities and this reduces excess items carried in stock.
It acts a reserve against an unpredictable high rate of usage.
It works as a check on the over accumulations of inventories and thereby result in minimum investments consistent with production requirement.
It eliminates delay in production caused by non – availability of required losses causes by inadequate inspection of incoming material.
2.2.6 TECHNIQUES OF INVENTORY CONTROL SYSTEM.
Pandy (2005) argues that in controlling inventories, the firm's objectives should be in consonance with the shareholders wealth maximization principle, to achieve this, the firm should determine the optimum level of inventory efficiency controlled inventories make the firm flexible. Inefficient inventory control results in unbalanced inventory and inflexibility, the firm sometimes run out of stock and sometimes may pile up unnecessary stocks. These increase the level of investment and makes the firm unprofitable.
However, to control inventories efficiency answers should be sought to the following two question;


How much should be ordered?
When to order?
The first question, relates to the problem of determining the economic order quality (EOG)
And is answered with a analysis of costs of maintaining certain level of inventories. The second question, when to order, crises because of the uncertainty and a problem of determining the re-order level. The various techniques of inventory control system will be discussed below:
ECONOMIC ORDER QUANTITY (EOQ) MODEL
This is an inventory control system technique or model used to determine stock level. It is a quality of materials to be ordered which takes into account the optimum combination of bulk discount from high volume purchases, usage rate, stock holding cost, storage capacity, order delivery time and cost of processing the order. It is an optimum size of either a normal outside purchase order or an internal production order that minimizes total annual holding and order costs of inventory. The major objective of controlling inventory is to discover and maintain the optimum level of investment in inventory. This optimum level will be that quantity which minimizes the total costs associated with inventory.
ASSUMPTION OF ECONOMIC ORDER QUALITY (EOQ) MODEL.
To be able to calculate a basic EOQ certain assumptions are necessary:
Demands rate is constant and can be ascertained.
There is zero lead time or orders
Stock – out are not allowed
The purchase price per unit is constant and hence a quantity discount are not allowed.
The ordering cost per order is known
Orders arrive instantaneous and not gradually.
The annual holding cost per item can be determined and its consent.

However, there are arguments against the EOQ assumption stating that it is not realistic because demand cannot be easily determine in practice and to avoid stock – out. The system will be very insensitive to change in the demand and may result in an increase of frequent of re-ordering items may come up for re-order in a random factors so that there will be no set sequence, many items may reach re-order at the same time over loading the re-order system.
Formulae for EOQ
EOQ = 2A0C
Where A = Quantity required
O = Ordering cost
C = Carrying cost
RE – ORDERING LEVEL MODEL
The order level is the level of stock availability when a new order should be raised. The stores department will imitate the purchase of material when the stock of material reaches at this point. This point will be higher than the minimum level so as to cover such emergencies as abnormal usage of the material or unexpected delays in the delivery of fresh suppliers or goods. It will be lower than the maximum stock level otherwise excess stock will be carried with the association cost (Kishore, 2008). This level is fixed between the minimum and maximum stock level and the following formulae are useful for this purpose:
Re-order level = maximum usage X maximum.
MAXIMUM LEVEL MODEL
Maximum stock level represents the level above which stocks should not normally be allowed to rise. It is reasonable that the level should be as low as possible, but must follow for forecast usage of materials. Maximum stock level will be fixed and it represent the total safety stock level and economic order quality. The following point should be considered when fixing maximum

stock levels. Rate of consumption of materials, amount of capital available, risk of obselesence carrying cost.
Maximum stock level can be expressed in the formulae given below:
Maximum level = Re-order level + order quality – (minimum usage + minimum lead time).
MINIMUM LEVEL MODEL
This is the level below which stock should not be allowed to fall. It is also called the butter or safety stock which will be available in emerging cases. The main objectives of establishing this level is to protect against stock – out of a particular stock item and in fixation of which average rate of consumption and the time required for replenishment. A large inventory of safety stock means higher carry cost but decrease the possibility of stock outs. The use of probabilities may be one of the best approaches used to decide on how much safety stock to carry in order to provide minimum total cost to the firm. Minimum level model can be expressed on the formulae below.
Minimum stock level = Re-order level –
(Average or normal usage X Average leed time).
ABC (ANALYSIS MODEL)
According to Kishore (2008) ABC analysis model is a basic control tool which enable firms to place the effort where the results will be greatest. This technique tries to analysis the distribution of any characteristics by stock values of importance in order to determine its priority. This technique can be applied in all facets of a firm. Many firms are applying this technique in materials management to identifying the contribution made by the materials in the total inventory value. On the basis of stock value materials procurement strategy and consumptions strategy is decided. Under this techniques, the item of in inventory are classified according to its value of


usage. The higher value items have lower safety stock, because the cost of production or service is very high in respect to higher value items. The lower value items carry higher safety stocks.
DETERMINISTIC MODEL
Adeniji (2008) said this ia a technique under inventory control system which assumes complete certainty of situations. The value of all factors such as demand, usage, lead time, carrying cost are known exactly and there is no element of risk and uncertainty.
STOCHASTIC MODEL
This model exist where some or all of the factors are not know with certainty and can only be expressed in probability or statistical terms. If the usage rate or leed time is specified as a probability distribution such would be a stochastic or probability model.
Sometimes, the decision environment cannot be determined with absolute certainty. Also, holding and ordering cost may be difficult to determine and the lead time may not be forced or certain due to strike and other problems and the effective demand or consumption may be difficult to estimate.
Probability distribution may have to be applied with respect to the demand for varying length of size. The stochastic model is thus developed to handle inherent uncertainties of the inventory system. The uncertainty is the demand requires. The uncertainty is the demand requires maintenance of safety stock to prevent excessive shortage.
2.3 THEORETICAL FRAMEWORK
Theories in the behavioral and management sciences facilitate research, which can be guided, if such theories are both logical and operationally adequate. In fact, a primary function of theory is to explain data (Osegeleh, 2010).
For this study therefore, the systems there would be adopted as the theoretical framework. This is because it considers all elements, the whole organization as its component parts. The term

"system" comes from the Greek word "Systema", which refer to an organized relationship among components, It denotes plans, order, arrangement and methods (Agbato, 1988).
Idemudia (1990) cited in Osegeleh (2010) defines the terms: "systems" and Theory "separated in order to elucidate the implication of their meanings. First a "system" is an entity made up of separate but inter-dependent parts with set goals and functions. On the other hand, a theory is an abstract generalized statement, summarizing or linking together a number of propositions into a unified logical structure. Put together, system theory means how the interrelated social entity is organized into testable propositions.
From the foregoing semantic distinction and conceptual clarification, it follows therefore that one of the ways to study modern organization such as the Abuja Urban Mass Transport Company (AUMTC), which is in it's a social and structural entity, is through the systems approach.
In applying the systems approach to this study we regard the Abuja Urban Mass Transport Company (AUMTC), as an open system or organization which has component parts as seen in its various departments, sections and units. These section and department can be viewed holistically as interacting within itself and with the outside bodies the larger society.
According to Abuja Urban Mass Transport Company receives inputs (men, materials. Finance, technical knowledge, managerial skills) in the forms of demand and supply from the environment. These demand and supply are critically analyzed in the conversion process (through inventory control system, to correct any short – fall or deficiency), and are passed out as output in the form of authoritative allocation of values, such as quantity, quality and efficiency service delivery which leads to organizational efficiency. It must be noted, that through feedback which comes in the form of reactions from the public or environment, the output provides the materials that form the inputs, which again initiate the circle.

Thus, the now-familiar concept of systems theory, views an organization as consisting of five basic parts namely: inputs conversion, process, outputs, feedback and the environment. This can be represented diagrammatically as shown below:
Figure 1: An Organization as a system
ENVIRONMENTINPUTS OUTPUT FEEDBACKCONVESION PROCESS
ENVIRONMENT
INPUTS OUTPUT

FEEDBACK
CONVESION PROCESS










Source: Adapted from H.G Hicks and C.R Gullet, Organizations: Theory and behavior (New York, Mc-Graw Hill Book Company, 1975) p.212.
The above Fig 1 shows the stages at which output becomes inputs again. It is obvious from the analysis that only when each of the sub-systems (units, departments and sections) are functioning properly that it can be said, the total system (organization) is effective in it performance. These features are applicable to the Abuja Urban Mass Transport Company (AUMTC) as a social Organization in the form of Public Enterprises.
Conclusively, the basic notion of a system is simply that it is a set of interrelated parts, which interact to achieve specified objectives.
2.4 LITERATURE ON THE SUBJECT MATTER
In the post – independence period, government was the prime agent of economic development, providing infrastructure and producing foods and services. This was often provided through the medium of the public enterprises. Developing countries like Nigeria used public enterprises to a greater extent than most Western Countries. For example, in 1977, Tanzania 400 state owned enterprises accounted for 38 percent of gross fixed capital formulation, a similar level as in Ethiopian, Nigeria (Jorgensen 1990).
There were some good reason for this greater use of public enterprises. Kunga (1993) argued that there was a chrome shortage of capital and capital market such that private ownership would necessarily mean foreign ownership. Also in many cases, no one from the private sectors was interested in providing utility services for nation-building, This for the nation to have necessary infrastructure it had to be provided through the private sector. Public enterprises was considered an appropriate form of organization.
Public enterprises is an organization that maintains the infrastructure for a public service, which is subject to form of public control and regulation ranging from local community based groups to state wide government monopolies. Public enterprises that provide for public utilities power, piped water supply, transportation (rail, road, water, air), telecommunication, sanitation and sewage, solid waste collection and disposal.
In an attempt to justify the establishment of public enterprises of any given economy Adamolekun (1981) give the following assertions:
That there is no indigenous private sector that undertakes certain infrastructural utilities like part harbor, railway, road construction dams sure the countries concerned have adopted a policy of total state control of the economy, the establishment of public enterprises appears to be the only available option.
Some public enterprises are expected to generate revenue that will add to available capital for national development and welfare programmes.


Public enterprises are used to organize certain activities essential for national survival and economic stability like iron and steel, water provision, internal air transport, rail transport and petro chemicals.
Public enterprises provides employment, this is considered as to be very important contribution, because the private sector of the economy offer very limited employment opportunity.
However, the role of public enterprises should be explore from the role in public sector plays in the development of economy, these role should be seen within the context of mixed economy because Nigeria operates a mixed economy system. This is a system which Sand-withed between the capitalist and socialist systems.
2.4.1 HISTORY OF ABUJA URBAN MASS TRANSPORT COMPANY
Abuja Urban Mass Transport Company Limited (AUMTCO) was established by the Federal Capital Territory administration (FCTA) in 1984 as Abuja Bus Service (ABS) and later registered on 13th November 1989 as Abuja Urban Mass Transport Company Limited under the companies and Allied Matters Act 1990. The company is charged with the responsibility of implementing the government's vision of affordable urban public transportation service delivery across the federal capital territory.
The Abuja Urban Mass Transport Company was established to perform the following functions:
Provide access to Abuja City Centre from the satellite town.
Ensure affordable transport fee from the satellite towns to the city centre and environs.
Operation and management of government transport vision for FCT Abuja.
Promote welfare policies of the government through affordable and standard transport charges.
Encourage proper usage of government facilities as prescribes under the FCT Transport secretariat.
Submit the result of research findings to the honourable minister for policy formulation relating to public urban transport in the FCT, Abuja.
2.4.2 ORGANIZATIONAL STRUCTURE OF ABUJA URBAN MASS TRANSPORT COMPANY
The Abuja Urban Mass Transport Company has four main department with the following function and job descriptions.
Operation: This department is responsible for the day to day activities of the organizations that entails the actual transportation. This department are the drivers, bus conducting ticketing and the general operation of the buses from yard to terminal and the eventual movement around the city and it environs.
Technical Services: This is the department responsible for the provision of effective and efficient technical support in terms of maintenance, repairs and overhaul of the bus in case there accident, engine problems etc. It also provides the basic facilities and conducive environment to enhance the performance of the buses, equipment, terminal and bus yard.
Admin and Supply: This department is in charge of adequate management of human resources and effective supply and utilization of mobilized resources. It ensure a rational use of facilities and assets, to actively institutionalize maintenance culture in the organization.
Finance and accounts: this department is responsible for overall supervision of financial activities of the organisms. It provides manager advice monitoring of the budgetary provision to ensure comphance. Preparation of financial statements for the internal and external purpose. Ensuring prompt collection of all revenue due to the organization and custody of same.


ChairmanOrganizational chart/structure
Chairman
Managing Director
Managing Director
Head Finance & Account Head MonitoryHead Admin & SupplyHead Mkt & CommunicationHead Operator
Head Finance & Account
Head Monitory
Head Admin & Supply
Head Mkt & Communication
Head Operator


Source: Abuja Urban Mass Transport Company (2015). Figure: 2
2.4.3 INVENTORY CONTROL SYSTEM AND PUBLIC ENTERPRISE
PERFORMANCE
According to krup (1994) a truly effective inventory control system will minimize the complexities involved in planning, exerting and controlling a supply chair network which is critical to business success. The opportunities available by improving a company's inventory management can significantly improve live business performance.
From a performance perspective, inventory control is not a small matter, often times, inventory is the largest asset kitem on an organizational balance sheet. As a result, there is a lot of control emphasis on keeping inventories down so they do not consume too much cash. The objective of inventory reduction an d minimization are more easily accomplished with modern inventory control processes that are working effectively.
A success inventory system makes keeping up with supplier deliveries and fulling customers orders easy while keeping overall worth of the inventory within acceptable parameters (bowers ox et al 2000). While implementing an inventory system is a greet step forward in keeping with transfers into and out of the organization's inventory don't consider it jobs complete. As part of the on going dedication to controlling resources with the greatest degree of efficiency, it is necessary to cheek on how well your system is working. That means taking time to evaluate the performance level of several key functions within the system and adjusting those functions as needed.
In order to measure the success of any inventory system, it is necessary to periodically evaluate what is known in many companies as key performance indicator, because the exact structure of inventory system will vary slightly from one situation to another. It is important to measure the level of performance as its relates to he goals and general operating precious off that organization. However, there is handful of key performance indicators the are useful in almost every situation.
A solid inventory system makes it possible to strike that perfect balance between the stock that is on hand and the stock that is needed to operate the organization efficiently . this is very important, as maintaining a high inventory means paying more taxes in most cases. When the system is capable of providing data that makes it possible to keep the inventory within a range and is capable of plugging items for obsolescence when applicable, you system is successful and competently managing the inventory, while still minimizing the amount of taxes due to each period.
When some aspect or function of an inventory is not working at full efficiency, there is the need to take immediate action. In some cases, this will be a matter of making a few minor charges to the take immediate action. In some cases, this will be a matter of making a few minor changes to the software. However, if the inventory system is limited and too rigid to allow for occasional refinements, it would be well advised to begin looking for a new inventory system. That will meet your organization's need (Petersen et al (2005).


CHAPTER THREE
METHODOLOGY
3.1 RESEARCH DESIGN
Paul (1980) cited I Adefolarin (2014) research design are the specification of methods and procedure for acquiring information needed. It is the overall operation pattern or framework of the project that stipulates what information is to be collected from which sources, by what economic procedures or objectives. In this study, a descriptive type of research sometimes called survey was employed Osuala (1982) defined descriptive type of research as that which specified the nature of a given phenomenon. This necessitates the use of (case) survey and can best be employed with samply procedure where the method was used to study a case sample of the whole population.
Hence, the research intention is basically to describe the impact of inventory control system or public enter organization performance and thereby generating new ideas about the subject matter or for improving or suggesting alternative existing rules and method.
3.2 POPULATION
Abuja Urban mass transport company has a total four department, office of the chairman and five bus yard in Karu, give or, Kubwa and Garki. As at December 2015, the Abuja urban mess transport company has 1,227 member of staff.
Since the entire population of the Abuja urban mass transport company cannot be study the samples of the population are selected from the four department at there headquarter.
The population selected for the study will be administered questionnaire and oral interview to provide every detail about the inventory control system.

3.3 SAMPLE SIZE
As a result of the nature of this research, staff of the various department of Abuja urban mass transport company, who could provide the needed information are taken as sample size from the population because of the inherent difficulty and the rare impossibility of administering questionnaire and interviewing all the members of the research population, the research resorted to using a sample of staff concerned with the acquisition, financing storage, usage e.t.c. of inventory. It is assumed that these categories of persons have acquired adequate knowledge of information pertaining to inventory control and its effect on a company's performance and managerial efficiency.
3.4 SAMPLING TECHNIQUE
A sample size of 80 respondents was chosen using random sampling random sampling is a method of selecting a population such that all members of the population have equal chance of being selected for the study and the sample of each caes from the pool of cases is independent of the sampling of are other. The method used was the random sampling method in order to bring about an unblessed data. For this study sampling size is gotten as thus;
P = XN
Where X - the number of elements in the sample found belong to the category of interest
N- The sample size
P- Population proportion P is equal to the number of elements in the population to the category of interest, divi by the total number of elements in the population
Therefore P = XN
4 =200N
N = 50

3.5 INSTRUMENTATION
The instrument used in this research are questionnaire, are interview and documentary materials.
The questionnaire is design to replant the statement of the problem, objective of the study and statement of hypotension. Essential informant for the research work here collected from two distinct sources, the primary and secondary sources.
Structured questionnaire deign was used and was taken for content and face validity from professionals in order to ascertain its validity and rehability.
3.6 INSTRUMENT VALIDATION
The validation of these instrument mention above could be subject to doubt and therefore have to be tested. In that order, the questionnaire item was given to this project supervisor for necessary correction, as well as other professional for modifications, The questionnaire was designed in such a way to generate responses that should directly address research questions in an attempt to give specific answers to research question.
3.7 RELIABILITY OF RESEACH INSTRUMENT
According to Osuala (2005) reliability of research instrument ensured that questionnaire are not ambiguously presented to respondents. The research objectives were use as a basic for the development of the questionnaires. The questions were designed to b ring answers which would revealed the Abuja urban mass transport company inventory control system methods and its corresponding effect in performances, profit and managerial efficiency.
The questionnaires were also designed to give answers to the research hypotheses used in the study.

The questionnaire consisted of three sections, with close and open types questions together with answers from which the respondents were expected to choose by ticking the answers and to give their opinion where necessary.
3.8 PROCEDURE FOR DATA COLLECTION
There are two main sources for procedure for data collection were primary and secondary collection sources.
Primary procedures for data collection entails to esthete easy responses from the needed information, a total so questionnaire were administer to the sample size of 50. While 45 questionnaire were completely filed and returned.
Each questionnaire has twenty (23) question; the administration of the question was done personally by the researcher.
Secondary procedure for data collection to provide theoretical backgrounds. This was done through the review of relevant literature using some textbook, journal, internet, some people libraries and oral information from authorities to the necessary conceptual framework for the subject of the study.
The major source from which experts opinion on the subject Matter were draw, it include published texts, articles and journals.
3.9 METHOD OF DATA ANALYSIS
In analysis the data, the research hypothesis were used to enable the research draw conclusion from the questionnaires administered. The method of data analysis involved was a critical

appraisal examination and interpretation of data gathered which was used to make the important feature of the subject Matter easy.
The measure was seen as convement by the researcher based on the fact that all the questions raised could be used in testing the hypothesis and more to easily identify the proportions of respondents given their response.
However, the chi – square (X2) method was used in testing the hypothesis. Chi-square (X2) method you very useful and non parametric statistical techniques of testing the differences between two or more variables.
The value of the observer frequencies compared with the critical determined frequency variable.
A large X2 value indicates much differences between the observed (Fe), A small X2 value means that there is not much differences between the observed (Fo) and expected (Fe) frequencies. Where there is not differences between the observed and the expected frequencies of X2 value is Zero.
The statistic used for the testing the chi-square (X2) which you tested mathematically using the under stated formulae:
X2 = (FO-FEFE )2
Where: X2 = Chi-quire value
Fo = Observed prophecy
Fe = Expected prophecy




DECISION RULES CRITERIA FOR VALUATION OF HYPOTHESES
In deciding whether to accept or reject the null hypothesis, the computred X2 value is compared with the table obtained using a 95% level significance.
Therefore, the deadline rule is as follows:
If the computed X2 value from the observed frequencies is greater than the table value, reject null hypothesis ( HO) i.e IF CU > TV
If the computed X2 value from the observed frequencies less than the table value, accept alternative hypothesis ( H1) i.e, CV < TV
Where HO = Null Hypothesis
HI = Alternative Hypothesis
CU = Collated X2 from the observed frequencies
TV = Table value

CHAPTER FOUR
DATA PRESENTATION, ANALYSIS AND INTERPRETATION
4.0 RESULT AND DATA ANALYSIS
In order to achieve the objective of this study the data collected are presented, analyzed and interpreted in this chapter. The validity of the research hypothesis stated in chapter one is examined based on the research objective.
The following are objectives of the study:
To inquire into the inventory control method(s) use in Abuja Urban Mass Transport Company.
To find out the level of consistency in the used of this system and to see if it conforms in the generally accept inventory control principles.
To ascertain the impact of different inventory, control system on an organizational performance and managerial efficiency.
To determine the problems associated with inventory control system at Abuja urban mass transport company.
The analysis done using tables and interpretation are based in the answer given by the respondents for the questionnaire administered. The questionnaire which contain 23 questions, were administered to some selected staff of Abuja Urban Mass Transport Company Abuja.




4.1 FINDINGS OF THE STUDY
The analysis of responses is processed in the table below:
TABLE 4.1.1: SHOWING DISTRIBUTION OF ADMINISTERED QUESTIONNIARE
Respondents
Frequency
Percentage %
Returned
45
90
Unreturned
5
10
Sources: field work 2016
The analysis above in table 4.1.1 shows That 45 respondents that u 90% returned duly filled questionnaire, while 5 respondent representing 10% unreturned questionnaire. 90% is valid enough for this study.
SECTION A: PERSONAL DATA
This section A of the questionnaire deals with personal data and demographic distribution of the respondents. The data are presented in tabular form as follow below:
TABLE 4.1.2: ANALYSIS OF RESPONDENTS SEX
SEX
FREQUENCY
PERCENTAGE %
Male
24
53.3
Female
21
46.6
Total
45
100
Source: field work 2016
The above table show that 24 respondents represent 53.3% were male, while 21 respondents are female which is equivalent of 46.6% .
This indicated that the population of male is more than the female respondents.
TABLE 4.1.3: ANALYSIS BASED ON AGE
AGE
FREQUENCY
PERCENTAGE
20 – 30
8
17
31 – 39
12
26.6
40 – 49
10
22.2
50 – above
15
33.3
Total
45
100
Source : Field work, 2016

Table 4.1.3 above show that 8 respondents representing 17% and between 20-30yrs, while 12 respondent that 26.6% under the 31-39, also 10 respondent that 22.2% are between 40-49 years of age, 15 respondents representing 33.3% are 50years and above. This indicates that there are more respondents within 50 years and above in the organization.
TABLE 4.1.4: ANALYSIS BASED ON MARITAL STATUS
Marital Status
Frequency
Percentage
Married
3635
77.7
Single
8
17
Divorce/Separated
2
44
Total
45
100
Sources: fieldwork 2016
The table shows that 35 respondents are married representing 77.7% while 8 respondents are single that 17% also 2 respondents are divorces /separated represented by 4.4%. This implies that there are more married people in Abuja Urban Mass Transport Company.
TABLE 4.1.5: ANALYSIS BASED IN EDUCATION QUALIFICATION
Qualification
Frequency
Percentage
SSCE/WAEC/NECO
10
22.2
ND/NCE
15
33.3
BSC/HND
17
37.7
M.SC
4
8.8
Total
45
100
Source Field work, 2016
From table above analysis shows that there is 10 respondents which is 22.2% SSCE/NECO/WAEC certificate, 15 respondent while 33.3% are NCE/NDA holders, while 17 respondents that is 37.7% are HND/B.SC holder, 4 respondents are 8.8% M.Sc holders. From the above analysis, it can be seen that most of the respondents are holders HND/B.Sc degree qualifications.



Table 4.1.6 : WHAT IS THE NAME OF YOUR DEPANTMENT
Department
Frequency
Percentage
Operation
7
15.5
Technique Service
8
17
Admin & Supply
13
28.8
Finance & Account
17
37.7
Total
45
100
Sources: Road work 2016
The above table shows the analysis of respondents department that work, 7 respondents that is 15.5% work in operation, 8 respondents that 17% work in technical services, 13 respondent are 28.8% work in admin & supply, while 17 respondent that is 37.7% work in finances and accounts. From the above table analysis, it can be seen that most respondents work in finances and account department.
TABLE 4.1.7: HOW LONG HAVE YOU BEEN WORKING FOR AUMTCO
Years of Experience
Frequency
Percentage
0-5
4
8.8
6-10
9
20
11-15
12
26.6
16-20
13
28.8
20 and above
7
15.5
Total
45
100
Sources: Field work, 2016
The above table shows the analysis of respondents work experience respondents on 0-5 experience is 4 representing 8.8%, 6-10 experiences is 9 representing 20%, while 11-15 experiences indicate 12 which is also 26.6%, respondents on 16-20 experiences are 13 respondents that is 28.8, and 20 and above experiences is 7 respondents that is 15.5%, from the above table analysis, it can be seen that most of the respondents with 16-20 experiences are the majority.



SECTION B. ASSESSMENT OF CONSISTENCY WITH THE USE OF INVENTORY CONTROL METHOD
In order to find out how consistencies Abuja Urban Mass Transport Company is in maintaining its inventory control system, sources questioning were asked under this leading questionnaire administrated. These questions are analyzed as follows:
QUESTION: (10) Does you organization maintain a system of inventory valuation?
TABLE 4.1.8 REESPONSES TO QUESTIUON (10)
Option
Frequency
Percentage
YES
25
56
NO
15
35
NOT SURE
5
11
Total
45
100
Sources Field work, 2016
The responses from the total reveal that about 56% of the respondents are of the opinion that the organization maintain a system of inventory control valuation, on the other hand 35% of the respondents believe otherwise and 11% are not sure if Abuja Urban Mass Transport Company maintain a system of inventory control.
Question (12): Have your organization been consistent in its inventory control method?
TABLE 4.7.9 RESPONSES TO QUESTION (12)
Option
Frequency
Percentage%
Yes
30
67
No
10
22
Not sure
5
11
Total
45
100
Sources Field work, 2016
The responses from the total Indicates that 67% of the respondents are of the opinion that AUMTCO is consistent in its inventory control methods, about 22% are of the opinion that

AUMTCO is not consistent in its inventory control system, while the other 11% are not sure of AUTCO consistency rate of its inventory control methods
SECTION C: IMPACT OF INVENTORY CONTROL SYSTEM IN THE ORGANIZATION PERFORMANCE
The questions raised under this section were meant to find out the impact of inventory control system on the level of the organization performances
QUESTION 16: Does the inventory control method used by AUMTCO affect it performances positively?
TABLE 4.1.10: RESPONSES TO QUESTION 16
Option
Frequency
Percentage
Yes
35
78
No
5
11
Not sure
5
11
Total
45
100
Sources: Fieldwork, 2016
The responses from the table reveal that above 78% of the respondents are of the view that inventory control has a great lumped on the organization performances. On the other hand 11% does not think inventory control has an impact on Abuja Urban Mass Transport Company and 11% is not sure about what inventory control does to the organization.
Question (17) if yes in (10) above, in what does it affect productivity?
TABLE 4.1.11 Responses to question 17
OPTION
FREQUENCY
PERCENTAGE
Increase gross productivity
20
45
Actualize production
20
44
uncertainty
5
11
Total
45
100
Source: fieldwork, 2016

The responses to the table indicate that about 45% of the respondents are of the view that inventory control increase the respondents thinks it actualize the budget production while the remaining 11% are uncertain.
SECTION D: INVENTORY CONTROL AND MANAGEMENT DECISION MAKING
Questions raised here were meant to find out the degree of inventory control on managerial decision making
Question 18: does the inventory control method used by AUMTCO positively?
TABLE 4.4.12: Responses To Question 18
OPTION
FREQUENCY
PERCENTAGE
YES
22
45
NO
20
44
No sure
3
7
Total
45
100
Sources: fieldwork, 2016
From the above 49% of the respondents are of the view that inventory control relevant to managerial decision making. However 44% of the respondents are thinking otherwise while 7% are not of its relationship.
Question (20) does the management take into consideration the inventory control method in used before making decision that will affect the AUMTCO services and inventory control system?
TABLE 4.1.13: Responses to question (20)
OPTION
FREQUENCY
PERCENTAGE
YES
20
44
NO
25
56
NOT sure
------
----
Total
45
100
Source: fieldwork, 2016

From the above, 44% of the respondents believe that management take into consideration the inventory control method before making decision. However on the other hand 56% are of the view that management do not take into consideration the inventory, control method in use before making decision that will effect production and inventory control, this may arise in period of celebration or bonanza where the organization has added special incentive o customers and intends it to get to the customers before the stipulated period of the celebration and bonanza therefore the inventory method will be breach to fit into the objective in line.
SECTION E: INVENORY CONTROL SYSTEM AND ITS ASSOCIATED PROBLEMS
In order to find out the problems associated with inventory control in Abuja urban mass company, some questions were asked under these section.
Question (21) Does adequate inventory valuation often times fail due to lack of clear goals and objectives?
TABLE 4.1.14 RESPONSES TO QUESTION (21)
OPTION

FREQUENCY
PERCENCTAGE
YES
30
67
NO
15
33
NOT SURE
---
---
Total
45
100
Sources: Fieldwork, 2016
The responses from the table indicate hat about 67% of the respondents were of the opinion that the there are no problem associated with inventory in Abuja urban mass transport company. On the other hand 33% were of the view that they are certain problems associated with inventory control, this is because there were not involved in the system design that stipulate what inventory method should be use at what point in time

Question (23): Despite the importance place on the role of inventory control system on the organization with adequate infrastructure, in terms of availability, warehousing, fuel, spare part, office equipment held in stock. Has inventory remained a problem?
TABLE 4.1.15 RESPONSES TO QUESTION (23)
OPTION
FREQUENCY
PERCENTAGE
YES
45
100
NO
---
---
NO SURE
---
---
Total
45
100
Sources: fieldwork, 2016
From the table above 64% of the respondents agree that with all the facility put in place inventory control does not pose as a problem to under the performance of Abuja urban mass transport company.
4.2: TEST OF HYPOTHESIS
TEST OF HYPOTHESIS ONE
Ho: Inventory control system does not improve the Abuja urban mass transport company performance
H1: Inventory control system improve the Abuja urban mass transport company performance to test this above hypothesis, question 10 will be used
OPTION
FREQUENCY
PERCENTAGE
YES
25
56
NO
15
35
NO SURE
5
11
Total
45
100
Sources: fieldwork, 2016.



VARIABE
O
E
O-E
(O-E)
Σ(O-E)2
YES
25
10
-15
225
22.5
NO
15
10
-15
25
2.5
NOT SURE
5
10
-15
25
2.5
TOTAL
45



27.2
From the value x2c= 25,x2 Tat 0.5 with d f=4 is 9.49
DECISION RULE:
Reject HO: If calculated X2 is greater they calculated X2
From the above analysis, the calculated X2c= 27.2 and is greeter than value X2 T = 9.49 we therefore reject null hypothesis (H0) and the alternative hypothesis (H1) is accepted when starter that inventory control system improve the Abuja urban mass transport company performance.
TEST OF HYPOTHESIS TWO
Ho: Inventory control system does not enhance efficiency in managerial decision making in AUMTCO
H1: Inventory control system enhance efficiency in managerial decision making in AUMPTCO
To test this hypothesis, question 18 will be used
OPTION
FREQUENCY
PERCENTAGE
YES
22
49
NO
20
44
NOT SURE
3
7
Total
45
100
Source field work, 2016.
VARIABLE
O
E
O-E
(O-E) 2
£ (O – E)2
E
YES
22
10
12
144
14.4
NO
20
10
10
100
10
NOT SURE
3
10
-7
49
4.9
TOTAL
45



29.3


From the value X2 C = 29.3, X2 T at 0.05 with df = 4 is 9.49.
DECISION RULE
Reject Ho: If calculated X2 is greater than table calculated X2.
From the above table analysis the calculated X2T – 9. Kg. We therefore reject the will hypothesis (Ho) and the alternative hypothesis (H1) is accepted which states that inventory control system enhances efficiencies in managerial decision making in AUMTCO.
4.3 DISCUSSION OF THE FINDINGS
The discussion of the research result is based on the conclusion draws from the test of hypothesis using chi-square statistics.
In the first hypothesis, we concluded that inventory control system improves Abuja Urban Mass Transport Company Performance. It is noted with satisfaction that organization that takes inventory control system serious in their operation, are known to have attained high level of performance despite the absence of what types of organization it is either public or private interest. Thus, Inventory control system practices of any organization are historically interwoven with her performance attainment. Such performances are.
In the second hypothesis, we concluded that "inventory control system enhances efficiency in managerial and decision making in Abuja Urban Mass Transport Company. A truly effective inventory control system will minimize the complexities involved in planning, executing and controlling a supply network which is critical to business success. Inventory control system helps organizations to make better decision in a very positive ways that deliver increase value for tax payer's investment as in the case of funding majorly comes from tax collected by the government. To say that inventory control system enhances efficiency in decision making is an understatement. Inventory control system is connected to most, if not all of the key decision making within the organization such as Abuja Urban Mass Transport Company. It should be steering the stewardship, transparency and accountability system that ensure that the organization is enhances it decision making in appropriate, ethnic and professional manner. It is critical that these foundations are firmly laid so often they are the litmus test by which public enterprises can gain public confidence in the current economic situation is either won or lost.

CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATIONS
5.1 SUMMARY OF FINDINGS
This chapter is a summary finding of this research work project on the impact on inventory control system on public enterprises performance in Nigeria. Recommendation made by the research are believed will help to enhance performance in Abuja Urban Mass Transport Company it taken into conversance. The conclusions derives from this research are also stated on this chapter, while proposal for further studies is noted in the work.
Inventory Control System has become highly developed to meet the rising challenges in most organization and this is in response to the fact that inventory is an asset of distinct feature. The place of inventory on the product and service of a firm and also the management of an organization cannot be over emphasized. The impact of inventory control system on the organizational production in profitability and performance such as Abuja Urban Mass Transport Company is important to managed and heeds of various unit or department in a manner that shows that inventory as an item contribute to enhance performance in a public enterprises. The main objective of this study is to reveal the various ways available to the impact of inventory control for subsequent productivity. The study principally analyze the inventory control methods of Abuja Urban Transport Company as it relates to it performance.
During the course of the research, the following observation were made from the date presented and analyzed in chapter four of the research work.

The Abuja Urban Mass Transport Company recognized the importance of inventory control system and has therefore been using it.
It has also discover that Abuja Urban Mass Transport Company method of inventory control system has been used consistently for many years since the inception of the organization. Therefore the tendency for inefficiency in supply is minimized as a result of this.
The Abuja Urban Mass Transport company determines its inventory company determines its periodic inventory system.
It has also been observed that it is not difficult to state objectively how inventory control system enhance increase performance efficiency, but it is just accepted that inventory control system enhance productivity performance and decision making to a good extent which exceed 50% of 79%.
5.2 CONCLUSION
The following conclusion were drawn from the analysis of data presented in chapter four about the impact of inventory control system on the performance of public enterprises in Nigeria using it as case study.
That a proper control of inventory has a positive impact on organizational performance. This is because inventory control system improves the productivity, performance and decision making of Abuja Urban Mass Transport Company.
That the inventory control method used by Abuja Urban Mass Transport Company is a proper method of inventory control and conforms with the general accepted inventory control system principles.That Abuja Urban Mass Transport Company have consistent in the use of an inventory control method.
5.3 RECOMMENDATIONS
Based on the findings of the research in the study, the researcher makes the following recommendations aimed at increasing performance and managerial efficiency, remedy certain defects in the organization inventory policy and if their recommendations are implemented, the organization inventory control situation will attain a greater height.
First, improvement of the inventory control system through the use of an inventory recording – system like perpetual inventory system, this would lead to a reduction, theft and other causes of loss. Thus would lead to increased productivity and efficiency in performance.
Secondly, there is a need for commitment on the post of managers and supervisors. It is very important to desist from slack or laxity due to monopoly of principles arising from the fact that the organization has used the same method of inventory for many years. This slack will and reduce the performance of the organization and hence should be avoided. The organization can do by employing more staff, which would result in the division of labour.
Thirdly, the organization should also increase its investment in modern office equipment and also computerize its operation. The use of such equipment will facilitate the control of inventory in the organization.
Lastly, the organization should interest in collaborating with its supplier a more sincere ways. The materials supplying chain network pay attention to, thus take into consideration the apparent relevant of their supply chain in making decision with regards to inventory.
5.4 PROPOSAL FOR FURTHER STUDIES
Considering the fact that inventory control system is very imperative to organization performance as findings of the research work posit. We suggest further research should accommodate and expand the studies especially other public enterprises. We also hope that the data in terms of population sample size would be enlarge so as to form a strnger basis to adjudge the impact of inventory control system on organization performance as well as managerial efficiency.






REFERENCES
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Balajoko, N.D and Ogbechi .A (2001) Decision Theory in Business, Lagos, Phiglad Nigeria Ltd.
Bagu, E.W (1979) Administering the Organization Function India: Princeton Hall Inc. Eagle Wood Cliffs.
Chukwigwe, .N (2002) Framework of Business Management. Port Harcourt: Pair/Publishers.
Elegwu, .B.O (1984) Dictionary of Management London: London Power P.
Ezirim, A.C and Briggs, B.R (2004) Research Methodology for Management and Social Science: Enugu: Mc Computer Press.
Ihunda, .C.C (2000) Management Information System. Spring field Publishers.
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APPENDIX II
QUESTIONNAIRE
PERSONAL DATA
Age = (a) 20 – 30 ( ) (b) 31 – 39 ( ) (c) 40 – 45 ( ) (d) 50 above ( )
Sex = (a) Male ( ) (b) Female ( )
Marital Status: (a) Married ( ) (b) Single ( ) (c) Divorced/ Separated ( )
Educational Qualification =
(a) SSCE/WAEC/NECO ( )
(b) ND/NCE ( )
(c) BSC/HND ( )
(d) MASTER ( )
5. What is the name of your department?
(a) Operation ( )
(b) Admin & finance ( )
(c)
(d)
6. What is your position in the organization?
(a) (b)
(c) (d)

7. How long have you been working for AUMTCO
(a) 2yrs ( )
(b) 3yrs ( )
(c) 11- 15yrs ( )
(d) 16 – 20 yrs ( )
(e) Others please specify________________
SECTION A
Assessment of Consistency with the Use of Inventory Control Method
What is the inventory system used in your organization (a) Periodic Inventory System ( )
(b) Perpetual Inventory System ( ) (c) Other Please Specify __________________
9. Does your organization maintain a system of inventory control valuation?
(a) Yes ( )
(b) No ( )
(c) Not sure ( )
Have your organization been consistent in its inventory control method?
Yes ( )
(b) No ( )
(c) Not sure ( )
How often is your inventory control system prepared?
(a) Monthly ( )
(b)Quarterly ( )
(c) Yearly ( ).
SECTION B
Impact of inventory Control System on Public Enterprises Performance
Which are the most effective method you ever used.
Economic Order Quality ( )
Abc Analysis Model ( )
Re – order Model ( )
Others please specify ________________________
What have benefit derived from using each system stated in above question (12") as compared to other system?
(b) (c)
Does the inventory control method used by your organization affect it performance positively?
(a) Yes ( )
(b) No ( )
(c) Not sure ( )
If yes in (14) above, in what ways does it affect productivity?
Increase gross productivity (b) Actualize Budget (c) Uncertainty
Other Please specify if any _____________________________



SECTION C
Inventory control and management decision – making.
Does the inventory control method used by your organization positively affect managerial decision making?
Yes ( )
No ( )
Not sure ( )
If yes in (16) above, in what way has it affected management
Effective decision making ( )
Slow decision making ( )
Ineffective decision making ( )
Does the management consider the inventory control method in used before making decision that will affect the organization services and performance?
Yes ( )
No ( )
Not sure ( )
SECTION D
Inventory control system and its Associated Problems
Does adequate inventory valuation often fail due to lack of clear goals and objective.
Yes ( )
No ( )
Not sure ( )

How would you weigh the effect of inventory control in your organization?
Very good (8o% - 100%) ( )
Good (50% - 79%) ( )
Bad (30% - 49%) ( )
Very bad (10% - 29%) ( )
Despite the importance place on the role of inventory control system on the organization with adequate infrastructure, in terms of availability of warehousing, spare part, fuel, personnel staff. Has inventory remained a problem?
Yes ( )
No ( )
Not sure ( )
Would you suggest that public enterprises should engage inventory control system?
Yes
No
Not sure
Should there be a legal compulsory use of inventory control system in public enterprises in Nigeria?
Yes
No
No sure