The Impact of Inventory Control and Planning in Stores Administration
ABSTRACT
The study will investigate the impact of inventory control and planning in store administration in the fan milk industry of Owerri. This work is divided into five chapters, the first of which will look at the introduction, background of the study, research questions, study limitations, and definition of terms.
The second chapter will look at the literature review, which will introduce many authors and their books, journals, and other publications that will provide their perspective on the topic, while the third chapter will look at the research design, sources/methods of data collection, population and sample size, sample techniques, validity and reliability of measuring instruments, and method of data analysis.
The fourth chapter will discuss data presentation and analysis, followed by hypothesis testing and a discussion of the study’s major findings. Finally, chapter five will summarize all of the preceding chapters, draw a conclusion, and the researcher will give his recommendations, list the bibliography, and finally write out the questionnaire questions.
CHAPTER ONE
1.0 INTRODUCTION
1.1 THE STUDY’S BACKGROUND
Inventory control is a branch of storekeeping that has been used for a long time. Today, it engages in a wide range of activities. Inventory control is the act of storing valuable items for future use and producing them when needed. Inventory control encompasses more than just keeping and producing items; it also includes operations, receiving, quality control activities, store staff training, control of all store houses, stock handling, and clerical documentation.
Inventory control can be defined as the act and science of achieving inventory objectives in an organization.
It entails planning, organizing, staffing, controlling, and coordinating all inventory operational activities to ensure efficient service delivery. Inventory control is a serving center, and the services to be provided must be handled meticulously and more organized in order to meet the demand of all units or departments that comprise the organization for optimum performance.
The primary function of inventory control is to provide for efficient inventory and handling of goods to be redistributed to the ultimate user; this activity, when carried out with the use of information technology (IT), will make material recording simple because the information is already in the computer.
The use of information technology in inventory control eliminates time waste. This contribution to the operating function must be fully recognized. All other activities, despite their relative importance, are subordinate to this primary responsibility. The following central objective can be analyzed:
i. To provide a steady flow of raw materials, components, tools, and equipment, as well as any other items required to meet operational needs.
ii. To supply maintenance materials and spare parts to general stores as needed.
iii. Receiving and issuing work in progress and finished products. iv. Accepting and storing scraps and other materials as they arise.
v. Account for all goods received and issued in the store.
Thus, in any institution, private or public, a significant amount of money is spent on the acquisition of materials, equipment, and so on, which are kept in a storehouse for future use. These items are worth the same as cash and must be protected from unauthorized use until they are used for their intended purpose and properly accounted for.
Keeping inventory incurs significant costs, despite the fact that we must keep stock to meet production and sales requirements. This is because if we do not keep enough stock on hand, we risk running out of stock and incurring all of the costs associated with stock out.
As a result, in order to avoid the aforementioned problem, an organization must strike a balance between carrying too much stock (overstocking) and carrying too little stock (understocking) (under stocking) Profitability cannot be overstated because it is the reason why organizations exist.
If inventory control is carried out properly, there will be an increase in production and sales, resulting in increased profitability for the organization.
There, this study attempts to determine how inventory can be effectively used to reduce time waste, theft, obsolescence, and pilferage in the organization in order to achieve their profitability goals.
1.2 STATEMENT OF THE PROBLEM
Inventory control and planning have an impact on fan milk ice cream. Owerri, the firm, is dealing with a number of issues, including the need to build up a stock of materials, which must first be purchased from suppliers and, in many cases, the goods must be paid for with the organization’s working capital. As a result, the impact of inventory control becomes an issue.
1. The firm is battling the unavailability of materials in stock in the sense that they frequently operate on a hand-to-mouth basis, making the impact of inventory difficult.
2. Because stock is sometimes allowed to leave the store without being properly requested, the impact of inventory is complicated.
3. Overstocking causes deterioration and pilferage, making it difficult to influence inventory control and planning in the firm.
4. Because optimal stock levels are difficult to determine, it is difficult to influence inventory control and planning in the firm.
5. The use of inexperienced store administrators, resulting in insufficient inventory control and planning.
1.3 STUDY OBJECTIVE
The primary goals of this research project are as follows:
1. To emphasize the enormous/importance of effective stock planning and control in store administration.
2. Identifying and resolving stock management and control issues in the store administration.
3. Identifying the likely consequences of overstocking and understocking planning and control in store administration, as well as the benefits of keeping stock at an optimal level.
4. Whether there is a misalignment between policy and practice in the fan milk industry in Owerri.
5. Ensure that a qualified store administrator is employed in the organization’s store to improve inventory control and planning.
1.4 QUESTIONS FOR RESEARCH
The research questions are as follows:
1. Is store management aware of the significance of efficiency, inventory control, and planning?
2. Is there an unnecessary carrying cost and capital tying up as a result of overstock?
3. Is the impact of inventory control and planning important to store management?
4. Does understocking result in stock outs in store management?
5. What effect does stock/inventory have on the organization’s profitability?
1.5 THE STUDY’S IMPORTANCE
The success of many projects and programs is dependent on the useful guide for a research project because inventory is the lifeblood of any organization.
The research work will serve as a resource for researchers interested in how to manage and control inventory in a rapidly growing industry.
However, the researcher believes that the information gleaned from this study will assist employees of concerned companies in Nigeria in determining whether their method of inventory control and planning is truly having an impact in their company.
It will also assess whether the inventory control and planning procedures ensure the success of the inventory control and planning system in their company. It will educate the public on the inventory control and planning procedures used in the establishment. It will also highlight the work points of the current procedure. The reader may benefit from thinking about inventory control and planning as he or she sees it in his or her own environment.
1.6 STUDY OBJECTIVES
The purpose of this research is to examine the need for effective stock control and store administration planning. In general, but with special emphasis on the Fan Milk Industry in Owerri. This is in order to learn how the company has been able to control and plan her stock, as well as achieve her goals.
1.7 THE STUDY’S LIMITATIONS
During the course of this work’s research, the researcher encountered difficulties in gathering responses from respondents, the location of the case study organization, and the difficulty in delivering what is commonly referred to as the organization’s secrete by respondents. Despite the difficulties, the researcher was able to obtain the necessary information.
1.8 TERM DEFINITION
Some technical terms purely related to the topic are used in this research work for easy comprehension, and the explanations of the work are given below:
Order price: Ordering costs include the cost of preparing a purchase order or production order, as well as special processing and receiving costs that are proportional to the number of orders processed.
Carrying cost: The carrying cost of the desired rate of return on inventory investment, as well as the cost of storage, breakage, obsolescence, deterioration, insurance, and personal property taxes.
Quantity of economic orders: The economic order quantity is the amount of inventory that results in the lowest total and annual cost of the items in question.
Recorder level: This is the print or level that initiates a new order. It is determined by the anticipated usage during the lead time.
Safety stock: This is the stock set aside to meet customer demand for new materials in the event of unexpected usage beyond normal usage. The goal is to keep the company from running out of stock at the same time.
Lead time is the time it takes from when a need is identified to when an order is placed and the requirement is gathered and delivered to the buyers.
Stock: This is the amount of goods or anything kept or stored for use as needed, most notably a quantity of raw materials, work-in-progress, and finished goods from suppliers.
Stock control is the activity or study of stock to ensure that the quantities of stock, raw materials suppliers, or finished goods are such that a satisfactory level of service is maintained for all stock keeping units while holding costs are minimized.
A stock holder is a company or individual who owns a specific type of stock, such as wholesalers who have manufactured goods on hand.
Stock level (Inventory level): This is the level at which sales are maintained.
Stock out: This is the state of having stock or materials on hand for a period of time, for example. The cost of sock records, the rent for storage space, and the wages of a storekeeper
Stock card: This is the method of measuring the quantity of stock that an enterprise has in order to obtain an accurate list of items.
Stock turnover is the ratio of a firm’s sales revenue for a person of average goods during that period.
Obsolete: This is simply the state of being out of date.
Obsolete: The state in which a given product or material is no longer in use due to the invention of a new product or material.
Minimum stock level: This is the minimum stock level that stocks are not permitted to exceed.
The term “parato analysis” refers to a systematic mechanism for ranking stocks in order of importance.
Bulk purchase: This is when you buy in large quantities.
Deterioration is the loss of value in the residual value of a product’s assets, materials, and so on.
The Impact of Inventory Control and Planning in Stores Administration
Do You Have New or Fresh Topic? Send Us Your Topic
INSTRUCTIONS AFTER PAYMENT
- 1.Your Full name
- 2. Your Active Email Address
- 3. Your Phone Number
- 4. Amount Paid
- 5. Project Topic
- 6. Location you made payment from