Project Topic – THE IMPACT OF EFFECTIVE STOCK CONTROL IN A MANUFACTURING COMPANY

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ABSTRACT

It was difficult to monitor the developments which are currently happening in most management discipline especially in purchasing and supply management. In an organization where purchasing and supply is given full attention inventory controls stands to be the hallmark in which such organization base to know the direction of its success. People with limited understanding of what inventory control is has given it interpretation as just keeping and holding stock used in production but they fail to understand that purchasing and supply management has more to it such is optimizing some predetermined management criteria further findings reviews that, insufficient inventory can disrupt production and distribution cycle. In the same regards, there should be a level of inventory taking because excessive inventory can easily cripple the firm’s cash flow and thus endanger its liquidity ratio.

CHAPTER ONE

1.0 INTRODUCTION

1.1 BACKGROUND OF THE STUDY

Stock control is an important and expensive activity, which is often placected and understated in many organizations both in the public and private sector. It is an area where modern stores management techniques could be used to advantage in reducing costs and ensuring increased profitability of an organization. In modern supply management, stock control is the real control function; it encompasses all the basic aims of the store operation. The basic concept of stock control is quite simple, the right material, in the right quantity of the quality, at the right time and place. Carter (1982) defined stock control held by the organization is supplied to these parts of the operation that required item (example, production, distribution, sale, engineering EST.). Material of the correct quantity and quality is made available and when required, with due regards to economy in storage and costs, purchasing price and working capital.

It is the responsible of the stores to ensure that the process of stock control is performed within the stores section. Stock control is the operation of continuously arranging the receipts and issues to ensure that stock balance are adequate to support the current rate of consumption with due regards to economy. The store officers must ensure that the basic arms of stock control are achieved. Stores must analysis the information concerning production; sale and distribution needed maintain the stock control system.

1.2 STATEMENT OF THE PROBLEM

Since stock control is a feature of almost every modern industries, institution est. there are some problems uncounted in controlling stock. Stock control is all about the handling of materials, to be profitable to the body involved and when insufficient capital to acquiring stock, the system will definitely go down.

Where there are unqualified storekeepers with the responsibility of controlling stock, a lot of thing will go wrong because when unqualified store keeper are into system, they will even issue material when the order was not given and this will bring system down the more because store is like a ware house to distribution when issuing material without order will run the whole system.

Some operation taken in controlling of stock held in running the system, when the system of operation used in controlling the stock is not in order, it will handle the achievement of the basic aim of stock control.

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Project Topic – THE IMPACT OF EFFECTIVE STOCK CONTROL IN A MANUFACTURING COMPANY