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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.
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.
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.
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.
1.2 STATEMENT OF PROBLEM
The impact of inventory
control and planning in fan milk ice cream Owerri, the firm is battling
with a lot of problems varying from building up stock of materials which
first of all has to be purchased from suppliers and remembers in many
cases the goods will have to be paid for the organization working
capital. Therefore, the impact of inventory control becomes of problem.
1.
The firm is battling with unavailability of materials in stock in the
sense that most at times, they operate on hand to mouth level and that
makes the impact of inventory to be difficult.
2. Because stock are
sometimes allowed out of the store without proper requesting, it cause
difficulty in the impact of inventory.
3. Due to deterioration and
pilferage caused by overstocking it makes it difficult to impact
inventory control and planning in the firm.
4. Because the optimal
levels of stock is not easily determined it makes it difficult to impact
inventory control and planning in the firm .
5. The use of non qualified stores administrator resulting to lack of proper inventory control and planning.
CHAPTER ONE -- [Total Page(s) 3]
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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---
