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The Impact Of Inventory Control And Planning In Stores Administration
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CHAPTER ONE
1.0 INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Inventory
control is an extension of stores keeping and it has been in practice
for a long time. It has a wide scope of activities today. Inventory
control is an act of safe keeping some valuable items for future use and
to produce them when the need arises. Inventory control goes beyond the
scope of keeping and producing the items only but also involves
controlling of operations, receiving, quality control activities,
training of store staff, control of all store houses, stock handling as
well as clerical documentation (Ogbu 2016).
According to Victoire,
(2015), inventory control can be defined as an act and science of
achieving the objectives of inventory in an organization. It involves
planning, organizing, staffing controlling and coordinating all the
inventory operational activities for the provision of efficient
services. Inventory control is a serving centre and the services to be
provided must be meticulously handled, more organized to meet the demand
of all units or department that constitute the organization for optimum
performance. The primary function of inventory control is to provide
for efficient inventory and handling of goods to be redistributed to the
ultimate user, this activity when carried out with the use of
information technology (IT) will make recording of materials easy as the
information are already in the computer. The use of information
technology in controlling of inventory eliminates time wastage. This
provision of services to the operating function must be fully
appreciated. All other activities although they have their own relative
importance are subordinate to this primary responsibility the above
central objective can be analyzed as follows:
i. To make available a
balance flow of raw materials components, tools, equipment and any other
item necessary to meet operational requirement.
ii. To provide maintenance materials spare part to general stores as required.
iii. To receive and issue work in progress and finished products
iv. To accept and store scraps and other materials as it arises.
v. To account for all receipt and issue of goods in the store
Thus
in any institution, private or public some substantial amount is spent
on the acquisition of material and equipment etc which are kept in the
store house for future use. These items represent an equivalent amount
of cash and have to be looked after, protected against unauthorized
usage, until they are used for the intended purpose and duly accounted
for (Tarus, 2015).
A lot of cost are associated with keeping of
inventory despite that we must however hold stock to meet production
needs and sales needs. This is because if we do not hold stock in
sufficient quantity we stand the risk of running out of stock and
incurring all the cost associated with stock out. Therefore, for an
organization not to have the above mentioned problem it is important
that they strike a balance between carrying too must stock (over
stocking) and carrying too little stock (under stocking) the importance
of profitability cannot be overstated, because that is the reason why
organization are in business, if inventory control is carried out
properly, there will be increase in production and sales thereby
increasing profitability for the organization (Shardeo, 2015).
There,
this study attempt to find out how inventory can be effectively be used
to reduce time wastage, theft, obsolesce and pilferage in the
organization so as to achieve their goals of profitability.
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ABSRACT - [ Total Page(s): 1 ]The research work will look into the impact of inventory control and planning in stores administration in fan milk industry owerri. This work is divided into five chapters, the first chapter will look into the introduction, background of the study, research questions, limitation of the study, and definition of terms. Chapter two will look into the literature review that is introducing many authors and their books, journals etc bring out their view on the topic while chapter three will look into ... Continue reading---
