IMPACT OF EFFICIENT INVENTORY CONTROL ON MATERIALS MANAGEMENT IN AN ORGANIZATION
ABSTRACT
Inventory control requires high cost and investment commitments. In manufacturing company where inventories are handled the introduction of a well planned and effective system or means of controlling these inventories is necessary for profitability and accountability to both the management and shared holders of the company whose inertest, objectives was established must be protected.
However, the researcher work will be treated in five chapters.
Chapter one is the introduction of the work where the problems were identified, five research questions and four hypothesis were stated to guide the work.
Chapter two involved the review of related literature quoting the various professional ideals on the issue while my own perspective was also stated.
Chapter three inventories the sources of data for the study, the sample size and the statistical tool were used in analyzing the data.
Chapter four dealt with proper analysis of research questions and hypothesis with percentage, frequency and hypothesis statistical tools.
Chapter five is the summary of the work the conclusion of findings from the data analysis in chapter four.
CHAPTER ONE
1.0 INTRODUCTION
1.1 BACKGROUND OF THE STUDYÂ
A trend in the past has been for companies to hold some level of stock than preciously did. Hence companies gas fund that they can sometimes reduce the lead time required to obtain materials and to produce products, so that they can operate with less inventory and skill serve their customers effectively.
Stock is idle resources hold for future use. Whenever the inputs and outputs of a company are not used as soon as they become available, inventory is present. Services operation and jobs tend to have small investments in stock. For may companies, however, stocks account for a large percentage of assets this need for stock control.
Chilaka (2006:128) times stock control as the means by which materials of the correct quantity and quantity is made available and as at when required with due regard to the economy in storage and ordering cost, purchasing and working capital.
Carter and price (1996:139) defines stock control as the process of ensuring that the stock held by the organization is supplied to those parts of the operations that required the items (ie production, distribution, sales, engineering etc).
Henritz and Farrell (1990:100) defines inventory stock control as the assurance of having the items at hand when needed and afford the added protection of reserve, stocks, theoretically untouchable but practically serving to fill needs when extra ordering demand develops or when correct procurement fails.
Organizations that have stocks has the advantages of assessing items to be held in stock, the extent of stock holding operational needs time required to deliver goods, availability of capitals, cost of storage, regulation of the input of s tock into and from the stove house through these, it is possible for firms to adjust continuously the quantity and value of stock held to com firm with circumstances of control. According to monk (200:148) inventory need to be effectively managed, if efficient operation is to be achieved, due to its initial nature, the mode of control and management of inventories can be a factor in the success or failing of manufacturing company concern.
He pointed out that insufficient inventory can seriously disrupt the product distribution cycle that is so critical to the survival of all the manufacturing organization. On the other hand excessive inventories can cripple a firm as felons and this endanger it’s liquidity position. Either poor inventory management can present a serous challenge to the productive capacity of manufacturing organization.
In view of the subject matter of the work, the researcher aims at identifying the nature of stock control in Rokana industries Plc Nekede Owerri.
