3.0 RESEARCH
METHODOLOGY
1+N(e)2
3.1 RESEARCH DESIGN:
This chapter focuses on the techniques
used in collecting and analyzing data. The
authenticity and validity of
any research, is
dependent on the researcher’s
ability to reach those currently and
directly concerned with the problem, so
as to find out from them what
their views, ideas, thoughts
and feelings are on the
subjects under
investigation. Therefore, this
study has been based data,
facts, information and opinions that were gathered
through questionnaires, as well as interviews and participants
observation which were answered by randomly selected companies,
management, accountants and managers. The study applied a case study research design
because only one entity was being
studied with the
ultimate aim of gathering data from the
respondents on the role of
inventory management on customer
satisfaction.
3.2
RESEARCH
POPULATION
The population for the study is 193. The
target population comprised of 130 employees that made up of five (5)
departments working at Anambra Motor Manufacturing Company (ANAMMCO). The case study used a census because the
population was not large (Kotrein, (2006). Data collection methods were not large. They are classified as observation guides,
interview guides, (for the management) questionnaire, (for both management and
the customers) as well as available records in the organization. The five departments include; stores
department, Accounts department, product department, internal audit department
as well as the managers involved in general administration.
3.3
SAMPLE SIZE DETERMINATION:
Five departments have been selected out
of the total number of departments in the company. These departments have been
chosen on the basis of convenience and their relevance to the subject of study.
The Five selected departments are as
shown in table 3-1 below
S/No
|
Departments
|
Staff
Strength
|
Percentage
|
1
|
Stores
|
47
|
24.4
|
2
|
Accounts
|
68
|
35.2
|
3
|
Production
|
45
|
23.2
|
4
|
Internal
audit
|
25
|
13.0
|
5
|
Managers
|
8
|
4.10
|
Total
|
193
|
100
|
Source: Survey data
However
Stores department is made up of 24.4% staff, Accounts department 35.2% , production department
23.3%, Internal audit 13.0%,
and Managers 4.1% staff respectively.
The
sample size used for
the study, was systematically determined using Taro Yamani
Formula (Yamain, 1964:280). The
formula is stated thus:
n =
N
1+N(e)2
Where:
n=Overall
sample size
N=Total
population size
I
=Constant
e
= Margin of error
5%
was chosen as margin of error.
N=193
1.4825
=130
Thus, the overall sample size for the
study is 130 which represents 67.3% of
the target population. Bowley proportion allocation formula has been used in
arriving at the number of questionnaire allocated to each sampled department /
organization because of the differences in number of employees. The formular as
quoted in Ranjan, (1976:137) is,
nh =NHn
N
where:
nh=
number of units /categories allocated to
each department / organization
N
= Overall population of the study
NH
= population in each department/ organization
N=
Total sample size obtained.
Therefore:
Stores
Dept.= 47 x 130 =32.0
193
Accounts
Dept. = 68 x 130 =46.0
193
Production Dept =45 x 130 =30.0
193
Internal audit Dept = 25 x
130 =17.0
193
Managers
= 8 x 130 = 5.0
193
Table 3 -2
Distribution
of Questionnaire to the Five (5) Departments.
S/No
|
Departments
|
Staff
strength
|
No of
questionnaire allocated
|
1
|
Stores
|
47
|
32
|
2
|
Accounts
|
68
|
46
|
3
|
Production
|
45
|
30
|
4
|
Internal
audit
|
25
|
17
|
5
|
Manager
|
8
|
5
|
Total
|
193
|
130
|
Sources:
Ezechukwu Field work
3.4
SOURCES OF
DATA
The basic raw materials with which
statistical investigation is conducted are called data. They are needed for the analysis and
interpretation of problems. They are two
classes namely.
3.4.1
PRIMARY AND SECONDARY
DATA
Primary Data: This provided
a presentation of the actual information that was obtained to
accomplish the aim of the study.
This primary data was gathered
using both open ended and closed ended
questionnaires. The questionnaires were
self administered to the five (5)
departments who were selected for the purpose of analysis.
3.4.2
SECONDARY DATA:
Empirical and
theoretical literature from
books, journals, magazines
and internet were
sourced for the purpose of collecting
secondary data.
Descriptive statistics in the form of
frequency percentage and inferential statistics were used for analysis in the
study (Mugenda and Mugenda, 1999). Statistical package for social sciences,
computer software, was used to present the data in the form of frequency,
tables and percentages.
3.5
COLLECTION OF
DATA
In this study, both quantitative and
qualitative methods of data collection were used because of the nature of our
scope. Questionnaires, constituted one of the instrument employed for the
study. A pretext was conducted, before
the actual distribution of questionnaire so as to ascertain the suitability of
the questionnaires and to determine the appropriateness of the attributes. Ezejelue and Ogwo 9199:95), Asika (1991:76)
Anyanwu (2000:42) and Osula (2001:232) have all supported the above
approach.
3.6
VALIDITY AND
RELIABILITY OF RESEARCH INSTRUMENT.
The validity and reliability of any research work of this
nature depends on the researchers ability to reach those currently and directly concerned with the problem in order to find out from them what their
views, ideas, thoughts and
feelings are on the subjects, under
investigation .
The
data used in the
development of this project
work were collected from the
various levels of management in the manufacturing company,
Anambra Motor Manufacturing Company,
Enugu, through the use of questionnaire, personal or
oral interviews which serves as auxiliary to the questionnaire and it helps in
explaining certain technical
questions to the respondents so that they will not disagree in their
response from the main objective of
the questions. Other sources of vital information are: Financial
Journals, Magazines, Textbooks and internet. The various accounting and control
books and documents used by the company for inventory control, were inspected
and specimen copies and formats collected.
3.6.1. INTERVIEW QUESTIONS
The questions used for conducting oral
interviews with the different levels of management, strategic managers of the
manufacturing companies. Specifically are listed below:
i.
Do
your raw materials have any peculiarity?
ii.
What
basic type of inventories do you maintain?
iii.
What
are the major costs you incur in holding and replenishing the inventories?
iv.
What
problems does your company encounter in keeping inventories?
v.
What
inventory policies do you have?
vi.
What
factors influence your choice of the policies?
vii.
Which
Department or Sector’s is responsible for managing inventories?
(i)
Who heads the department?
(ii)
What is the relationship between the person and the financial manager?
viii.
Do
you employ any of the inventory control methods e.g. perpetual, periodic
inventory method or ABC classification method?
ix.
Comment, generally on the need and benefit for
managing and controlling of inventories from your experience?
3.6.2 DESIGN AND
ADMINISTRATION OF QUESTIONNAIRES
Due to the unique nature of the study,
we used field survey approach. The field survey approach was justified on
account of the variability of both the unit and phenomena under study. The
field surrey was carried out on the five (5) department identified. The
questionnaire through which the data were collected contained 16 questions each
was administered on the Stores department, Accounts department, and Production
department, internal Audit ,, as well as the managers involved in general
administration. While eight (8) of the questions were in the of close- ended,
one was an open- ended question.
The check list (close- ended ones)
consists of prepared list of specific questions and a list of possible answer
e.g. “Yes” and “No”.
In spite of the fact that these types of
questions do not allow the respondent the opportunity to express his opinion,
the researcher chose it because they are easy to administer and to fill. They
keep the respondent’s mind fixed to the subject matter. It also facilitates the
process of tabulation, analysis and scientific generation. In order to
accommodate the flows of the checklist questions, the open-ended question was
incorporated into the questionnaire. Though the open-ended question does not
provide fixed answer, they allow the respondents enough room to reveal their
motives and express their individual preferences. A copy of the questionnaire
has been attached as one of the appendices at the end of the completed work.
3.6.3. Data
Analysis Techniques.
The data for this research work were
quantitatively and quantitatively collected. They were also statistically and
socially analyzed to determine the management and control of inventory in
manufacturing companies. Statistical analysis of data involved the following:
Ø Frequency table:
for ascertaining the number of occurrences of phenomena of interest.
Ø Percentages
Ø Chi-square (X2)
The chi-square (x2) test can be used for
one, two or more variables. The purpose of this test is to determine how well
on observed set of data fits an expected set of subject. (Baridam 1995:171).
Chi-square is applied in the following situation.
a.
When
there are two variables drawn from independent samples each of which is
categorized in two ways e.g. “Yes” or “No” responses.
b.
When
the data are none metrics, when the data are expressed in frequencies (Asika, 1991:136).
The computation of chi-square ratio
requires the determination of expected frequencies for each of the cells in the
tables subtracting each cell, squaring this differences, dividing by the
expected frequency / or the cell and then summing up all the quotation.
The
formula for chi-square (X2) is thus:
X2 = ∑
(0-e)2
e
Where:
X2 = chi-square
o =
actual or Observed frequency
e= expected frequency. Fig.II
Decision
Rule:
The null hypothesis (Ho) was accepted when the computed value of X2
was less than the tabulated value of X2 for (R-1)(C-1) degree of
freedom.
Where: R=Number of rows.
C= Number of columns
On the other hand, social analysis of data involved aspects of
phenomenological analysis.
Phenomenological is a new star in the research horizon. As a qualitative
research parading, it basically seeks to make explicit and implicit structure
and meaning of human experiences (Atkinson, 1972). The form of analysis is
concerned with the in which we come to know live experiences of other. It is
the search for “essence” that cannot be revealed by ordinary observation Uzoma,
1992). The researcher included phenomenological analysis in the study because
certain types of behavioral phenomena elude quantification and statistical
inference.