CHAPTER ONE
INTRODUCTION
1.1
Background of the study 1
1.2
Statement of the problem 4
1.3
Objectives of the study 5
1.4
Statement of hypothesis 6
1.5
Significance of the study 6
1.6
Scope of the study 7
1.7
Limitations of the study 7
1.8
Historical background of the case study 8
1.9
Definitions of terms 9
CHAPTER TWO
LITERATURE REVIEW
2.0
Introduction 11
2.1
Theories of strategies of production
Planning and inventory control 12
2.2
Production planning and inventory control in the hospitality Industry 14
2.3
An
appraisal of operations in Jubilee
Hotel Kaduna 19
2.4
Production
planning and inventory
control procedure 26
2.5
Assessing
the strategies used and the
improvements required if any 27
CHAPTER
THREE
RESEARCH METHODOLOGY
Research design 31
3.1
Research
population 31
3.2
Sample
size and sampling technique 32
3.3
Method
of gathering data 32
3.4
Justification
of method used 33
3.5
Method
of data analysis 33
3.6
Justification
of instrument used. 34
CHAPTER
FOUR
DATA PRESENTATION
AND ANALYSIS
4.1
Data
presentation 35
4.2
Data
analysis 42
4.3
Test of Hypothesis 46
CHAPTER
FIVE
SUMMARY
OF FINDINGS CONCLUSION AND RECOMMENDATION
5.1
Summary of findings 50
5.2
Conclusion
51
5.3
Recommendations 52
Reference 53
Appendix 55
CHAPTER ONE
INTRODUCTION
1.1
BACKGROUND OF THE STUDY
Hospitality industry is one of the leading industries in the world;
It contributes to prosperity creation and further economic development
of a country; it covers hotel, resorts, and travel as well as restaurant
businesses.
These services business are mutually depend increase in tourism will
ultimately lead to improvement in resorts, restaurants, hotel including travel
industries.
This study basically concerned with assessing the strategies of the
production planning and inventory control in hospitality. This will
consequently access the extent to which stock can be controlled.
Production planning and inventory control is a management function that involves
planning organizing, directing, coordinating, motivating, staffing and
controlling of activities in the store and inventory control.
On the other hand it can also be defined as the art and science of
achieving objective of the store in an organization.
A fundamental problem currently faced by hospitality according to Karlin
and Zipkin (2009) is the seasonal demand for their products. This problem is
very common and concerns a wide variety of products such as food stuff,
functions and banqueting and many other applications.
The seasonal demand issue is difficult to access for both the theorist
and practitioner. The problem requires the optimal combination of inventory and
production rates for each product in each time period to be found; principal
question is to determine the product quality in each period so as to minimize
the discounted costs of production, inventory storage, and cost sales. This
type of demand usually creates more complex problem because firms usually have
insufficient capacity to meet demand in high demand period.
This ultimately impacts on planning of production process as a whole.
The main thrust of this study is to map out strategies to solve the
problems of seasonality of the perishable goods which is very prevalent in the
Nigerian hospitality industry.
The central question here is, how can menu planning guests, and what
range of perishable food items can be stored and over what period of time?. As
opined by Patrick (2009) combinatorial optimization which means combining
planning and inventory control to optimize guest satisfaction in the running of
hospitality business remains one of the mathematical challenges.
Strategies directed towards confronting these challenges are many and
varied, depending on the methods of meal preparation service and the variety of
customer’s satisfaction where stocks are produced independent of orders because
there is a need to supply customers immediately with good meals from that stock.
1.2
STATEMENT OF THE PROBLEM
Most hospitality industry today faces one or more problems. This problem
of seasonal availability of food items is common to all hotels hence difficult
to manage efficiently.
In terms of perishable foods especially, it affect production planning
in the hotels.
Since local storage facilities are virtually absent, there is acute shortage
of certain items at certain tune of the season and this is accompanied by
serious price fluctuation.
Also the preference of customers affects the planning of the menu to
satisfy the guest need.
Therefore, the problems enumerated has necessitated this study of
assessing the strategies of production planning and inventory control in
hospitality in Kaduna state. This is geared towards enhancing efficiency in the
planning of menu meals service to customer preference and price fluctuation. Other
wise the meals planning would run into problem that will hinder the attainment
of stated goals and objectives of the organization.
1.3
OBJECTIVES OF THE STUDY
The main objective of the study is to asses the strategies of production
planning and inventory control in the hospitality industry in Kaduna state with
particular reference to jubilee hotel
Specifically, the study seeks to;
1.
Determine production planning and inventory control
in the hospitality industry.
2.
Assess how jubilee hotel copes with production
planning and inventory control in the face of seasonal availability of food
items.
3.
Identify strategies to serve as a platform for
future improvement in the area of purchasing food items.
4.
Determine how these strategies can help in making
better production planning and inventory control.
1.4
STATEMENT OF HYPOTHESIS
H1: production planning and inventory control in the hospitality industry
enhance profitability
Ho: Production planning and inventory control in the hospitality industry
does not enhance profitability
1.5
SIGNIFICANCE OF THE STUDY
The result of this study will be useful to all in hospitality
industries. Other restaurant may also utilize the finding of the study for
training their staff about the need for proper production planning and
inventory control it can be used by many hotels and catering establishment in
presenting seminar on how resources can be controlled.
Implementation of the recommendation base on the findings of this study
will help any of the hotels to plan properly and control the kitchen and
prevent unnecessary wastage of meals.
1.6
SCOPE OF THE STUDY
The study is limited to the production planning of menu and food items
inventory control in hospitality industry.
1.7
LIMITATIONS OF THE STUDY
The research encountered a few problems that limited that over all
output of the research work.
The researcher had some financial constraints and time limitation, which
involved combination of academic schedule with research time.
1.8
HISTORICAL BACKGROUND OF THE CASE STUDY
Jubilee Hotel was Established in the year 2005. it is a medium size
hotel located at No 72 Kakau Road, Abuja express way, Gonin Gora Kaduna.
The hotel was a total of 3 studio rooms, 24 standard rooms, and 4
business suite from the design of its organization structure Jubilee hotel is
being supervised by a Managing Director.
The board, therefore serves as the highest policy making body for the
organization, it meets quarterly.
The management team of Jubilee hotels is headed by the Managing Director
who in turn is supported by the Executive Director; the Hotel manager and the
accountant.
There are 4 principal departments
1.
House keeping department
2.
Front office department
3.
Food and beverage department
4.
security department
Each department is headed by a Manager who reports directly to the
general (Hotel) Manager.
The general Manager in turns report to the Managing Director on
operational matter and to the Executive Director (finance investment)
functionally.
1.9
DEFINITIONS OF TERMS
YM: Yield
manager
HTF: Hospitality
training foundation
HCMA: Hotel and Catering Management
Association
WTTC: World Travel and Tourism
Council
P.P.A.I.C: Production planning and
inventory control
Stock control: A system materials that is adequate to meet operating requirement of
the required quantity and quality employed to maintain.
Control: Maintaining correct
receipt, correct issues good storing to avoid deterioration.
Minimum stock: A stock selected as the minimum desirable which is used as an indicator
to show when stock have dropped too low.
Maximum stock: A stock selected as the maximum desirable which is used as an indicator
to show when stock have dropped too high.
Inventory
control: The issue of stock to be controlled in order not
to run short or wasted. Have the right goods in the right quantity at the right
time. Inventory control, include raw
materials, work-in-progress and furnished goods. Inventory.
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