The Relevance Of Stock Control In An Organization
The management and/or board of director of every organization must remained that every item held in stock control saying that inefficiency purchasing of materials can serious affected financial health of the organization resulting to its doom. Purchasing is chamber of any business organization so to decentralize the function of purchasing is to deprive an organization some of its potential profits.
However, centralization of purchasing function is essential in any organization for the purpose of attaining both optimum operating efficiency and maximum profitability. More so, an organization’s purchasing officer should motivate its stock control officers to ensure, a common relationship with each other. In conduction the research, the researcher adopted the survey method using oral interviews, questionnaires and personal observations. The researcher also interview other related literature necessary to get the needed information from the data collection for the study.
Table Of Contents
- Title page
- Approval page
- Table of contents
- 1.1 Background of the study
- 1.2 General overview of the study
- 1.3 Objective of the study
- 1.4 The scope of the study
- 1.5 Statement of problem
- 1.6 Research questions
- 1.7 The significance of the study
- 1.8 The limitation of study
- 1.9 The definition of terms
2.0 Literature Review
- 2.1 Meaning of stock control
- 2.2 The basic concept of stock control
- 2.3 Stock controls as a management concept
- 2.4 Stock control by value and quality
- 2.5 Reasons for holding stock
- 2.6 The stock control system
- 2.7 Sources of information for stock control
3.0 Research Design and Methodology
- 3.1 Introduction
- 3.2 Research design
- 3.3 Sources and method of data collection Sources of data
- 3.4 Method of data collection
- 3.5 Population and sample size
- 3.6 Sample technique
- 3.7 Method of data analysis
4.0 Presentation and Analysis of Data
- 4.1 Introduction
- 4.2 Presentation and analysis of data
5.0 Summary of Research Work and Recommendations
- 5.1 Summary of findings
- 5.2 Conclusion
- 5.3 Recommendations
1.1 Background Of The Study
Production operation will highly be hampered if the references of stock control are no properly and effectively carried out the basic stores functions is that of holding stock, thus the need for proper stock control becomes imperative in the other of contrary. The basic relevance function of stock control is that of making sure that activities designed towards the effective management and control of all inventories items held in stock are properly care off.
Nevertheless in an industry as well as the public sector organization, the stores has remained as one of the production department and storage, whether of raw materials partly processed work or products, is part of the sequence of operations, both clerical and physical which starts as soon as the customer’s order or management decision to manufactures the principles and procedures are exactly the same.
1.2 General Overview Of The Study
The study of purchasing and supply management cannot be complete without proper allurement of control of stock and its relevancies.
In treating the reference of stock control as an operations and or topic is to acknowledge the managers the most similar objects to beer in mind, which is to ensure that every piece of materials whether raw or worked coming into any store shall stay there for as short a time as possible before moving either out into the factory to be processed, or in the case of such things as spares, tools or building materials into use the essential qualifying condition here is that stocks must be maintained first high enough for a constant supply of materials components to be available when required.
1.3 The Objective Of The Study
The objective of the study (relevance of stock control in an organization) is to ensure that the following is achieved in every organization.
- To find out whether materials needed for manufacturing or operation purposes are available in the height quantity and quality, at the required time and place.
- To find out whether the level of stock is kept as low as possible, in order to keep capital invested in it to a practical minimum and to avoid occupying excessive factory space with consequent high overheads.
- To find out whether the necessary information for financial control is really and accurately provided.
- To know the protection of stock against waste and pilferage.
- To provide basis for perpetual inventory check and to eliminate the need for annual stock taking.
1.4 The Scope Of The Study
The researcher having visited some companies that deal on the same business line concert traded his investigation on the ways of achieving an organizations stated goals.
The researcher will however, identify the different strategies involved and used in the areas of stock control in these organization and some of the problems associated with it.
Furthermore, we will only focus our attention the ways of achieving success:
- By giving accurate record of every item in the store house.
- Keeps proper custody of materials information needed for the day to day operation in the storehouse.
- Transmits such information, to appropriate locations.
- Adapts effective method of discarding dead stock and method of improving life stock.
- Established the most economic levels for all stock of items in the store.
1.5 Statement Of Problem
The relevant of stock control in an organization is so vital in both large and small form. Upon the relevance of the stock control, the researcher in carrying out this research, work was able to identify some problems that may hinder the progress or smooth control of stock in an organization some of some of these problems are identified below:
- Professionals were not employed in the purchasing department and this makes the strategies involved in the relevance of stock control not achievable because the staff employed to do the job is not well trained.
- The method of sources of information used in this organization in terms of checking the control of stock is not good in the sense that anybody can do it without considering if the individual has the capacity.
- The stock control records are not properly kept and this makes the store’s manager to be very active.
- Another problem that hinders the progress of stock control in an organization is the type of material purchased. This implies that the materials might be in a bad shape, thereby stops the smooth running of organization.
- Finally, the stock held in the store for so long can cause a problem in controlling the stock in an organization. This means that stocks are not supposed to keep in the store for so long before they are dispatched to where they are needed.
1.6 Research Questions
- Do you think that professionals were not employed on the purchasing department and this makes the strategies involved in the relevance of stock control not achievable because the staff employed to do the job is well trained?
- Do you think that the method of sources of information used in this organization in term of checking the control of stock is not good in the sense that anybody can do it without considering if the individuals are capacity?
- Do you think that the stock control records are not properly kept and this makes the store’s manager to be very active?
- Do you think that the type of stock control strategy used in an organization might equally affect the type of material produced?
- Does imply that the type of stock control can cause materials to be bad shape, thereby stops the smooth running of the organization?
- Can a stock held in the stores for a longtime cause a problem in controlling the stock in an organization?
- Does it mean that stocks are not supposed to be kept in the store for a longtime before they are dispatched to where they are needed?
1.7 The Significance Of The Study
The significance and the relevance of stock in an organization cannot be over emphasized perhaps, if entrances this organization to be able to make and know the various ways of controlling the stock in the firm.
Stock control is also relevance in an organization because it aided in the researcher to and how the organization should be used and able to control their stock. It also enable an organization to maximize profit since a huge amount of money is being spent on materials it will also help the organization to ensure that cost are also minimize to the lowest minimum level.
Finally, stock control serves as a means of references to the organization. This research kept and this makes it easy for those who need than house it.
1.8 The Limitation Of Study
An investigation of this kind of confronted with several limitations. Its limitations are as follows.
Financing projects has been a trying experience, because of the prevailing economic conditions in the society, so the researcher is unable to travel and cover many places of interest in order to gather information for this research work.
This is seen as a hindrance to the study. The project work is disturbed from fact of regular rainfalls and not whether wind thereby hinders the researcher movement in his bid to collect data and distribution of questionnaires to respondents.
Limited To Factor:
The schedule of academic activities for every final year student both ND’s and HND’s of the polytechnic is tactic. The researcher needs to attend classes, read other courses etc.
This makes the researcher unable to collect response from many companies/organization as he would have loved to do.
The researcher also confronted with transportation problem. He wasted so much time on road and thereby making him to reach his place of investigation late.
Even some people in the organization do not give reliable information to the researcher which associated with unreliable information; poor audience by respondent is a big limitation to this project.
1.9 The Definition Of Terms
The researcher did not observe hard term words during his investigation.
Nevertheless, below are the definitions of the few observed terms by the researcher during his investigation.
This entails the ability of the researcher to develop the skill in avoiding offences during his investigation in order to get useful information from the investigation.
Under this system, a number of other sub-forms have been devised, notable amongst them are:
- Periodic Stock Level/Cyclical Provisioning: This means that stock is reviewed at regular intervals and sufficient is ordered to restore stock to the predetermined level.
- Re-Order level Stock control/Maximum and Minimum Control: Through this method, a replenishment order is issued when balance falls to the re-order levels.
Base Stock Method:
This system is mainly used for mayor project to ship building, where there is to be major project like a series of units constructed.
Self Regulation Stock Plan Scheduling
This is concerned with commutative movement of stock which is compared to predetermined friend, perhaps seasonally adjusted.
Imprest Stock Controls
This system applies where sub stores are maintained e.g. initial float of stock is given at regular bases like weekly or monthly.
Out For On Stock Control
There each issue is dependent on the returns of the item being replaced.
Summary Of Research, Conclusion And Recommendations
5.1 Summary Of Finding
Purchasing represents a stage on the evaluation of civilized human relationship. The problem of this study was spoken of as determining how efficiency and wisely purchasing function has always been performed in very organization. This will enable us to evaluate the chosen approach and techniques which were given under presentation and analysis of data.
This will then determine how much success has been achieved in providing solution to the study was due to the identification of how stock control and its relevance can made effectiveness and efficiencies in the organization.
Nevertheless, the immediate involvement of professionalism on the question of buying for organization must be given urgent and objective alternative by government in our developing economy.
The management and/or board of director of every organization must remained that every item held in stock without saying that inefficiency purchasing of materials can serious affected financial health of the organization resulting to its doom.
Purchasing is chamber of any business organization so to decentralize the function of purchasing is to deprive an organization some of its potential profits. However, centralization of purchasing function is essential in any organization for the purpose of attaining both optimum operating efficiency and maximum profitability.
More so, an organization’s purchasing officer should motivate its stock control officers to ensure a common relationship with each other.
Finally, if this procedure is followed, purchasing objective will be ensure in term of obtaining material of the right quality and right quantity from the right source of the right time and place effective stock controlling.
On the process of carryout the research work on the reliance of stock controlling in an organization especially on the areas relating to the purchasing officers and stock control officers, the researchers was able to find out the major problem facing almost all the business organization in which after analyzing his findings, therefore recommend the following as the appropriate solution.
- They should as a matter of fact operate on its own. This means having a direct manger whose responsibility is deciding on how work should be done in his/her department and not a clerical function.
- The organization should also make sure that only trained staff/worker is employed into this department, so as to effect enhancement in the establishment.
- The management should also make it an a point of duty to inspect and prepare instructional materials for the workers from time to time
- Also adequate stock holding should be employed.
- Finally, recommend that organization should also endeavor to have a well organization in services training programmer for some of the purchasing and stock control staff who do not have purchasing and stock control know ledge and skill.
The Relevance Of Stock Control In An Organization
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