Project Materials

RELEVANCE OF STOCK KEEPING AND STOCK CHECKING IN A MANUFACTURING ORGANIZATION

ABSTRACT

The topic of this project is “the relevance of stock checking in a manufacturing organisation”. A case study of P.Z industry Aba will provide insight into how to solve the difficulties of incorrect stock keeping and stock checking in the industry. To identify the sample, the researcher used a stratified random sample of the company’s employees. The sample size was determined using Yaro Yahmen’s statistical technique. Information and data were given and gathered from a variety of sources. Two hypotheses were proposed and tested. It was discovered that keeping a big stock of materials increased carrying costs and held up capital that could have been employed elsewhere. Based on the findings above, it was advised that daily/annual demand be determined in order to ensure effective stock keeping and stock checking. The process of procuring and stocking goods should be monitored and supervised. Finally, overall inventory investment should reflect a strong link between sales forecasts, manufacturing costs, and storage.

Chapter one

INTRODUCTION

1.1 Background of the Study

Stock keeping and stock checking are crucial activities that are frequently overlooked and undervalued in many organisations, both public and private. Stock keeping and stock checking can be defined as the process of making materials of the correct number and quality available when needed while taking into account storage and ordering costs, purchase prices, and working capital.

Stock keeping and stock checking thus comprise the procedure of 1. Assessing the objects to be retained as stock. 2. Regulating the distribution of supplies from storehouses.

To enable stock keeping and stock checking to appraise the things to be held in stock, he must consider what items are utilised and produced by the specific company, and then select which of those items to hold. It is considered that stock keeping, checking, and management can influence the success or failure of any organisation.

Given this, there is a need to maintain stock as insurance against “longer than lead-times” in order to take advantage of quantity discounts, seasonal swings, and other pricing variations.

Naturally, it is vital to have stock of goods that are frequently utilised as well as items that may be required on short notice in the event of a disaster.