The importance of accurate stock control in an Organization cannot be over emphasized no matter how diligent the job of control (computerized or manual). Some discrepancies are bound to occur. The system is operated by people, and people sometimes make mistakes.
Every inventory item should be physically counted and checked against its balance at least once a year. This verification of the quality balance is subsequently adjusted to match the actual count, for this reason, most companies created on inventory short hand over account to cater for such discrepancies, this account is eventually close into the manufacturing overhead account. The researchers will also highlight some of the ways of conducting the stock control in one of this ways of conducting the stock control exercise.
The physical inventory can be conducted in one of these ways:
- Fixed annual inventory: many companies take physical inventory every year at the close of the financial period.
- Continuous Inventory: at the beginning of each year, some firms divide the inventory period into fifty two equal groups to be physically counted without interrupting the production operation or up setting store room activities.
- Low point Inventory: some companies take physical inventory regulatory. i.e. whenever the stock level of an item reaches lowest point.
All these three methods are widely used in the selection of the most appropriate that one depends largely upon conditions in each individual business. The fixed annual inventory can be troublesome because it is a major task which must be accomplished in a short period of time. However, it is ideal seasonal business or business that completely closes down for an annual rotation.
The continuous inventory approaches possess two major advantages. It can be planned and worked into scheduled activities without a shut down. It can be conducted in an orderly manner, this approach also facilitate efficient utilization of store personnel. The low point approach minimizes the required inventory work because of the small quantities of materials involved allied product which meet the changing need of it’s customers through the employment of highly trained personnel’s and the utilization of up to date technology while ensuring optimum returns to its shareholders.
A five man board of director whose wealth of experience and expertise span various factors of the Nigeria economy shapes of the policy frame work of the company. Lubcon is endowed with highly talented and technically proficient personnel’s who have in the best tradition equipped and exposed to the demands of both local and global lubricant market. This was achieving through the company human resources policy and programmes.
1.1 STATEMENT OF THE PROBLEM
The problem facing the stock control is as follows:
- Poor layout: The layout without the store area, create difficulties in location and identification of materials in the store.
- The attitudes of the checkers are not reporting to appropriate quarters in case of any fraudulent act discovered that affects the stock control exercise.
- Records: there are no proper recording issues and balances.
- Accountability: there is no proper report on the receiving and issuing of stock as well as proper documentation on movement of stock within Organization, thus, proper account for stock cannot be maintained.
1.2 OBJECTIVES OF THE STUDY
The following are the objectives for carrying out this work:
- To find out companies (using Lubcon Oil) can control the level of the stock, preservation materials handling and the other stock operations.
- To find out how the function of the store related to the other departments of the company (Lubcon Oil).
- To find out how the nature and various types of materials handling equipment employed by store and relative effect on work efficiency.
1.3 SIGNIFICANCE OF THE STUDY
The primary significance of this research work is to fulfill one of the Obligations which serve as one of the pre-requisites for the partial fulfillment of the Award of National Diploma in all Business Administration awarded by the Purchasing and Supply Department, Kwara State Polytechnic, Institute of Finance and Management studies (IFMS), Kwara State Polytechnic, Ilorin.