Project Materials

NEED FOR EFFICIENT INVENTORY CONTROL SYSTEM IN SERVICE ORIENTED ORGANIZATION

ABSTRACT

The primary goal of this project is to identify the requirement for an efficient inventory control system in a service-oriented organisation at the related Bus Company Head Office in Umuoba Uratta, Imo State. This study seeks to determine whether or not the company practices or implements an effective inventory control system. It also oversees the functions and systems used in inventory management operations to ensure the continuation of material inflow and outflow in the storehouse. Inventory is commonly used in the United States, whereas stock is used in the United Kingdom, however both terms signify the same thing. According to a survey of linked literature, inventory control is the process of making supplies of the correct quantity and quality available as needed while considering storage and ordering costs, purchase price, and working capital. The researcher reviews the related literature, which focusses on inventory control, the role of material management in business organisations, types of inventory control systems, the store managers’ responsibilities in relation to materials storage, the stock record system, reasons for keeping stock records, methods of stock records, material deterioration, stock discrepancy, material obsolescence, inventory control techniques, and so on. All information related to the accomplishment of the research study is expressed.

Chapter one

INTRODUCTION

1.1 Background of the study

The inventory control system is a critical aspect of corporate management that must not be overlooked. Any organisation that does not use inventory control in their commercial transactions will undoubtedly encounter cost reductions, which will have an impact on the organization’s corporate goals.

As a result, inventory control systems in service-oriented businesses such as ABC Transport must be properly maintained in order to avoid running out of service.

This is because a shortage of inventory (stock) will disrupt production, causing consumer unhappiness and lowering the organization’s prestige and dignity in the labour market.

According to Uzor (2005:34), inventory control is the clerical control over the movement of items into and out of stores. He defined it further, paraphrasing Morrison (1982:34), as the means by which materials of the correct quantity and quality are made accessible as needed while taking into account storage and ordering costs, purchase price, and working capital.

According to the purchasing journal (2005:21), inventory is essentially the control of items employed in corporate operations. This means that inventory control requires some methods.