IMPACT OF EFFICIENT INVENTORY CONTROL ON THE PRODUCTIVITY OF AN ORGANIZATION
ABSTRACT
The topic this research work is the impact of EFFICIENT INVENTORY CONTROL on the productivity of an organization. Inventory control requires high cost and investment commitment most businessmen view inventory control or inventories and their attendant costs as “unnecessary evil” hence failing to assess carefully the benefits afforded their companies or business by existence of inventories. In a manufacturing company where these 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 shareholders of the company whose interest, objectives and aims under which the company as business was established must be protected.
However, the research 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 ideas on the issue while my own perspective was also stated.
Chapter three involved 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 the 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 STUDY
A trend in the past has been for companies to hold some level of stock than previously did, hence companies has found that they can sometimes reduce the lead time required to obtain material and to produce product, so that they can operate with less inventory and still serve their customers effectively.
Stock is an idle resources hold for future use whenever the inputs and outputs of a company are not used as they become available, inventory is present service operation and jobs tend to have small investments in stock for many companies, however, stocks account for a large percentage of assets thus the need for stock control.
Uzor (2006 : 128) defines stock control as the means by which materials of the correct quantity and quality is made available and a 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 organization is supplied to those parts of the operations that required that items 9ie production, distribution, sales, engineering etc)
Henritz and Farrel (1990:100) defines inventory 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 full needs when extra ordinary 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 require to deliver goods availability of capitals, cost of storage regulation of the inputs of stock into are from the store house through these, it is possible for a firm to adopt adjust continuously the quantity and value of stock held to confirm with circumstances of control.
According to Monk (2000:148) inventory need to be effectively managed, if efficient operation is to be achieved, he pointed disrupt the production distribution cycle that is so critical to the survival of all the manufacturing organization.
