NEED FOR EFFECTIVE INVENTORY CONTROL IN A SERVICE ORGANIZATION
ABSTRACT
The need for holding inventories in any service organization is necessary. The space of the inventory will be properly controlled so that the object of carrying or maintaining adequate inventory lands at minimum cost can be realized the study therefore examined the system of inventory control and management in Imo concord Hotel Owerri considering the nature of the study and the organization a lot of data were generated from questionnaire administration and proposal interview conducted on staff of the organization.
Based on the method of data collection the researcher found out that the system of inventory control is adequate in design and effective in operation as regards the determination of stick levels which could be attributed to the use of scientific method in determining the quantity and time to order.
CHAPTER ONE
1.0 INTRODUCTION
1.1 BACKGROUND OF STUDY
Effective and efficient inventory control management is a vital aspect of business management that must not be neglected by managers. Recent advancement and technology in business activities have generated the need for inventory management and control. For more than a decade now, inventories were handled by a clerk in a routine manner without applying the techniques of inventory but in recent times proper attention has been given to inventory management and control.
It is of utmost importance that inventories be well planned and impaltly controlled in order that it can contribute substantially to the efficient growth of the organization. In the effect of inventory control adequate care is taken in the assessment of the items cum materials to be held in stock decide the extent of stock holding of items individually and collectively and finally regulating the input and issue of stock into and from store cum warehouse. Any management that neglects inventory control will definitely run into costs that will generally reduce its corporate profits. Shortages n inventory will interrupt production and will further lead to losses. On the other hand if then is unintentional excess of stocking of materials in inventories the organizations funds will be tied up in stock instead of using if for other profitable purposes. It is of use factors that any organization will decide on how much and how often to place order in order to minimize the cost involved and equilibrate the total cost resulting from excess stocking and under stocking. Therefore the importance of the effect of inventory control in the services organization cannot be over emphasized.
1.2 STATEMENT OF PROBLEMSÂ
Most organization do not realize the essence and need for inventory control mechanism and because of this many of these organizations can not final their feet in business their inability to find their feet in business also include lack of proper inventory system and so such as material inventory control systematically controlled which resulted into excess inventory of hoods teeing up of capital loss through obsolescence and deterioration. At the same time shortages of materials have arises at the time when they are urgently needed and with this operators are delayed. It is based on these problems mentioned above that the researcher dimmed it fit to final out that the problems associated with the effect of INVENTORY CONTROL of the services organization ever, as it applies to the concord Hotel Owerri and also proffer solution through this work.
