IMPACT OF EFFICIENT INVENTORY PLANNING AND CONTROL IN GOVERNMENT ESTABLISHMENTS
ABSTRACT
Countless efforts have been made by the government to identify whether government establishment effectively utilize inventory planning especially in its ministries. This research project was therefore undertaken to study. The impact of efficient inventory planning and control in government establishment, using ministry of works and transport as a case study. The purpose is to ascertain whether efficient inventory planning has significant effect in the growth and development of government establishment.
Two sources of data were used. They are primary and secondary sources. Questionnaires were used as a research instrument to make up for the available data the other two sources.
Chi square (X2) test was used for the Hypothesis testing. However the analysis shows that efficient inventory planning has a significant effect in the growth and development of government establishment. The analysis also shows that effective and efficient inventory planning in government establishment.
Based on the findings, the researcher recommended that to ensure effective and efficient planning of inventory, stocks should be properly controlled by the personnel that is in charge of the store. This will enhance production and profitability.
CHAPTER ONE
1.1 GENERAL OVERVIEW
An efficient and effective inventory planning in any organisation is very vital in the survival of such and organization. Meig’s et al (1998) defines inventory as the aggregate of those items of tangible personal property which are held for sale in the ordinary course of business, and in process of production of goods and services to be available for sale. Hone (1988) defines inventories
as those resources that help in forming the link between the production and sales of a product. The Webbstor’s Third Dictionary defines stock as money on property servicing as capital stock alone, cannot produce a desire good rather it has relationship to the financial with the financial planning.An efficient and effective inventory planning and control as the name implies is an alternative term for stock control, common in the U.S.A and some public authorities for the quantities of stock and or its value held by the authority (Compton and Jessip, 1995). The management of inventory is thus an attempt to match supply and demand at a particular time and so forms part of a capacity management strategy. A number of approaches have been developed towards the management of inventory including MRPI and MRP II.
Inventory management is defined by slack (1995) as the stored accumulation of materials resources in a transportation system. According to slack (1995) all organizations will carry some inventory or stock of goods at any one time. This can range from items such as stationery to machinery parts and raw materials. The main focus of inventory management is usually on resources that one being transported, e.g raw materials, purchased components or customers in a service operation. Usually, the type of inventory management system employed by an organization is determined by the nature of its demand for goods services.
