Activity Based Classification Analysis of Sachet Table Water Production Enterprise in Gombe State, Nigeria

Abstract

The study examined the activity-based classification (ABC) analysis of sachet table water production enterprise in Gombe state, Nigeria. A random sampling technique was used for the study. Gombe Central enterprises, Gombe South enterprises and Gombe North enterprises were purposively selected. In the study area 45 production enterprises were selected from Gombe central, 15 production enterprises from Gombe South and 10 production enterprises were selected in Gombe North. The total sample size used amounted to 70 enterprises. The data were analyzed using ABC analysis with the aid of quantitative management software. The results revealed that Gombe Central (group A) generated N41.18 million/annum with average (N2.06 million/annum); (group B) N6.11million/annum with average (N0.32 million/annum) and group C generated N9.81 million/annum with average (N1.63 million/annum). Gombe South (group A), N2.29 million/annum with average (N0.20 million/annum) and group B, N8.49 million/annum (N2.12 million/annum). Gombe North (group A), N0.51 million/annum (N0.12 million/annum) and group B, N1.49 million/annum average (N0.24 million/annum). The sum of N57.1 million/annum with an average of (N0.81 million/annum) was generated in Gombe central; Gombe south generated the sum of N10.78 million/annum, average (N0.71 million/annum) and Gombe North generated the sum of N2 million/annum, with an average of N0.20 million/annum. This implies that in Gombe State sachet table water production enterprises generated N69.88 million/annum with an average of (N0.99 million/annum). There were more experienced managers in Gombe Central followed by Gombe South then finally Gombe North. With regards to inventory, the enterprises that fall under group B were 19 where each enterprise had 30% of items in the inventory which generated 15% of the total income invested in the enterprise annually, where N6.11 million/annum was realized in group B with an average of N0.32 million/annum. The study recommended that the people in Gombe State should engage in sachet table water production because it will improve the productivity of the citizens and the country at large.