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THE NEED FOR EFFECTIVE AND EFFICIENT STOCK CONTROL IN AN ORGANIZATION

Format: MS WORD  |  Chapter: 1-5  |  Pages: 72  |  1439 Users found this project useful  |  Price NGN5,000

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THE NEED FOR EFFECTIVE AND EFFICIENT STOCK CONTROL IN AN ORGANIZATION

 

ABSTRACT

This project begins with an introduction. Following introductions is chapter two (i.e literature review) which gives an insight into the research topic. Chapter three outline the methodology the research adopted in understanding the study. Results of investigation conducted are presented and analyzed in chapter four. While chapter five deals with summary, introduction conclusion and recommendations based on the researcher findings, setting out bibliography and appendix at the end.

 

CHAPTER ONE

1.0     INTRODUCTION

Production operation will highly be hampered if the stores functions are not properly and effectively carried out. The basic stores functions is that of holding stock, thus, the need for proper stock control an becomes imperative. Stock control in an organization involves activities designed towards the effective management and control of all inventory items held in stock.

Stock control can be further defined as “a means by which materials of the correct quantity and quality is made available as and when required, with due regard to economy in storage and ordering costs, purchase prices and working capital” from the above definition, it could be deduced that stock control is a system aimed at maintaining  a balance flow of materials by properly arranging, in a continuous basis, receipts and issues so that at any given time, the stock balances are adequate to meet current operational requirement. Stock control, however, involves the actual implementation and carrying out policies which management has established to regulate and maintain adequate stock balance without excess or deficiencies.

1.1     BACKGROUND OF STUDY

For an organization to be successful, it depends on the efficient control or stock in that organization. therefore, for the study of purchasing and supply management to be complete, there must be efficient control of stock. Store management is very closely liked with product and distribution and is a much neglected area of business study. Yet stock control is a vital part of all industrial organization, and it must be designed to suit the particular needs of the organization, it station and it service. Stock control is set up in any organization to assist in the production of goods and services and no industrial unit or public undertaking of substantial size can be efficiently managed without it. The basic aim of every efficient manager is to reduce the labour involved in each operation to the absolute minimum consistent with maintaining required quality.

Stock control represents the clerical control of the movement of materials into and out of the stores, and the level of stock in the stores at all times with due regard to the economy in storage as well as an ordering costs, purchase price agreed, and the level of organizations working capital. The stock control process focuses attention on factors related to time utility, location, quality and quality of materials used by the operations of the organization.

1.2     STATEMENT OF THE PROBLEM

The efficient of stock control in an organization is so vital in both large and small firm, upon the efficient of stock control, the researchers, in carrying out this research work were able to identity some problems that hinder the progress or smooth control of stock in an organization. some of these problems are identified below.

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