RELEVANCE OF STOCK KEEPING AND STOCK CHECKING IN A MANUFACTURING ORGANIZATION
ABSTRACT
In this project topic “the relevance of stock checking in a manufacturing organization”. A case study of P.Z industry Aba, is therefore to give an insight into ways of solving the problems of improper application of stock keeping and stock checking in the industry. The researcher made use of the stratified random sample to identify the sample among the staff of the company. The size was determined by the use of Yaro Yahmen’s sampling statistical formula. Information and all data were presented and were collected from various sources. Two hypothesis were put forward and tested. It was found that holding large stock at material increased carrying out and tied up capital which could have been used in other areas. Based on the findings above it was recommended that for efficient stock keeping and stock checking to be properly maintained daily/annual demand should be ascertained. This processes of obtaining and stocking inventory should be monitored and controlled. Finally, the total inventory investment should reflect good relationship between forecast of sales, cost of production and storage.
CHAPTER ONE
1.0 INTRODUCTION
Stock keeping and stock checking is an important area of activity which is often neglected and underrated in many organizations both public and private sectors. Stock keeping and stock checking can be defined as a means by which materials of the correct quantity and quality are made available as an when required by taking due regard to economy in storage and the ordering cost purchasing prices, and the working capital. Stock keeping and stock checking therefore involves the process of
1. Assessing the items to be held is stock
2. Regulating the issue of stock from the store houses.
To enable the stock keeping and stock checking to assess the items to be held in the stock, it is necessary that he consider what items that are being used and produced by the particular company, and from this, he can decide which of those items he should stock. It is believed that the stock keeping and stock checking and management can be a factor in the success or failure of any organization. Considering this, there is the need to hold stock to act as insurance against “longer than lead-times” to take advantage of quantity discount, seasonal and other fluctuations is prices.
Naturally, it is necessary to held stock of materials which are regularly used and also those items which may be required at short notice in the event of plant.
1.1 BACKGROUND OF THE STUDY
The study of relevance of stock keeping and stock checking in a manufacturing organization in being confined to the operations. The organization has been a participant in economic development and reconstruction since its inception and therefore has pulled a lot if experiences in market orientation. Stock keeping and stock checking has long time been in existence without full realization by the organizations involved. Therefore, there is the need to fully understand the role of stock keeping and stock checking in providing a means of hedging against future prices and delivery uncertainties as caused by strikes, price increase and inflation affective and efficient attainment of the organizational objective. Stock keeping and stock checking has been defined or described as a means by which materials or items of the correct quantity and quality are made available when required with due regards to economy in storage and cost of ordering, purchasing price and working capital.Stock keeping and stock checking can also be described as the function of planning and maintaining the right quantity of item for a given production or sales programmed with the minimum of investment. Stock keeping and stock checking has the following objectives:
i. To eliminate production or sales delay by supplying the materials items in manner and quantity need at the specified time
ii. To reduce the number of item which need to be carried etc.
