1.0 Introduction
1.1 Background Of Study
Stock control is an important area quantity which is of ten neglected and underrated in many organizations both public and private sectors.
Stock control can be defined as a means by which mathnds of the correct quantity and quantity are made available as and when required by taking due regard to the economy in storage and ordering cost purchasing prices and its working capital.
Stock control therefore involves the process of
- Assessing the items to be held in stock
- Deciding the extent the holding of such items either individual or collecting
- Regulating the input of stock into the store houses and
- Regulating the issues of stock from the store houses.
To enable the stock controller 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.
Stock is principally held for the purpose of providing a reservoir of materials to absorb the effort of vanation in both delivery and consumption and also for the maintenance of availability of supplies with the organization concerned. Naturally, it is necessary to held stocks materials which are regularly used ad also those which may be required at short notice in the event of plant.
We can define or describe stock control as means by which materials or items of the correct quality and quantity are made available when required with due regards to economy in storage, and cost of ordering purchase price and working capital, stock control can also be describe as the function of planning and maintenance of the right quantity of items for a given production or sales programmed within the minimum of investment.
i) Stock control has the following objectives or items in manner and quantity needed aret the specified time.
ii) To reduce the number of items which need to be carried etc, in order to achieve those objectives, the stock control involves too many methods which can be controlled by quantity and by values. it is desirable to control in value. Stocks control in quantity is only bound to give accurate result of every item that is kept at the proper level.
1.2 Statement Of Problem
Certain condition or factor can pace way for effective or ineffective stocking and verification.
The problem of this study to get rid of the following
- Lack of proper application of inventory which in indications the physical balance of items in the manufacturing company.
- Lack of proper application of stock level and documentation of items in the company.
- Items are strongly located in the company which exposes the items to deterioration and portage. This constitutes waste which drastically affects the company’s profit maximization.
Despite all the importance and benefits of stock taking it has from time to time record some down backs.
This study is therefore designed to identify such factors militating against effective and efficient stock control for better performance.
1.3 Objectives Of Study
It is necessary to have look at the past in order to appreciate what we are trying to do in the present so as to do better in the future.
Stock control has long time been in existence without the realization by the individual or co-operate goal. subsequently research work has been carried out based on the effective application of the stock control principles techniques and practice in various organization for purpose of achieving a healthy economy in the organization in order to achieve effectiveness and efficiency in an organization of any scope or scale.
This research work therefore has the objective of revealing the neglected but important contribution of effective stock in an organization.
The following objectives are to be reviewed:
- To determine the degree of interference by the employee or any of his sons in the course of carrying out their operations.
- To determine through the Analysis, the degree of effective stock control in manufacturing company.
- That space utilization achieved.
- Examine how optimum safety stock level is determine and maintained.
1.4 Significant Of The Study
The study will be beneficiary to the following persons or group of persons.
- The Government: The government will be able to know how resources are being effecting managed and controlled in the public sectors.
- The Public Sectors: This study will help the public sector to know the need for proper stock control in an organization.
- The stock Manager: This group of persons will be able to identify areas to intending inventory management and control measures.
- The Management: They will be in one position to accessing stock control target or goods of the organization are being achieved.
- The Researcher: Another significant of this study is that the conditional diploma certificate in Purchasing and Supply with its successful completion, the Researchers will be qualified for the of higher national diploma in Purchasing and Supply which enables the researcher to practice the profession.
- Other students: This study will also help other students who want to carryout further research on this topic or related topics.
1.5 Research Questions
The study came up with research questions so as to be able to ascertain the above stated objectives. The specific research questions for the study are stated below as follows:
- What institutes stock regulation in PZ industry?
- Who is responsible for ordering raw material in PZ industry?
- What determine the quantity of raw material orders?
- Has PZ industry ever experience excess stock?
- Does PZ industry ever have a case of inadequate stock?
1.6 Statement Of Hypothesis
In order to pursue the objective of this study, the following generalized statements have been designed to guide and aids in obtaining the result for the experiment to be conducted. For this work, the null hypothesis will be represented with H0 while the alternative hypothesis will be represented with hypothesis H1.
Hypothesis One
- H0: Holding Large stock of material does not introduce unnecessary ordering cost obsolesce risk and tied of fund in inventories.
- H1: Holding Large stock of materials introduce unnecessary ordering cost, obsolesce risk and tied of fund inventories
Hypothesis Two
- H0: Under stocking of raw materials leads to disruption production and losing sales
- H1: Under stocking of raw materials leads to disruption production and losing sales
1.7 Scope Of Study
This study is designed to give an insight into ways of solving the research problems. The problems of improper application of stock control in PZ industry Nigeria Limited and for the research to study all of them it will be impossible within the time given to the research.
Therefore the researcher decided to use PZ Aba as the case study so as carry out an in-depth study of the stock control in that company.
1.8 Limitation Of Study
During the course of this study, there were some problems encountered which stood as limitations to the research work. Some of the limitations include:
- Time Constraint:
The time frame given to accomplish this project was very short due to school academic calendar and it was carried out under pressure which made the researcher not to implement some necessary features.
- Establishment Policies:
Establishment policies posed a serious limitation as most staffs are not ready to release information needed for this research work. There were lots of information needed from the staffs of this establishment to enhance the study which took them time to release or they did not release at all for security purposes, hence the scope was reduced.
- Financial Constraint:
Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet, questionnaire and interview).
- Initial Cooperation Delay from Respondents:
A particular limitation of this work came as a result of the respondent refusal to offer their cooperation at the initial time they were contacted. This contributed in making the success of this research study difficult.
1.9 Definition Of Terms
Stock control:
Stock control can be defined as the means by which materials of the correct quantity and quantity are made available as regards to economy in storage and ordering cost, purchasing, prices and the working capital.
Replenishment:
This could be defined as the ability of making something full again by replacing what has been used.
Deterioration:
It is something to be work in quantity or condition
Inventory:
This can be defined as the total number of goods or materials available in a storehouse at a given period of time
Material control:
Material control section of the stock organization that is directly involve with the control of the flow of production material (in most cases from the supplier production center).
Interference:
It is a get involve in try to influence a situation that does not concern you in a way that annoys other people.
Ordering Cost:
It is used in the cases of raw material (supplies) includes the entire cost of in activities such as requisition, purchasing, ordering, transportation, receiving inspection and storing (store placement) ordering cost increase in proportion to the number of order placed.
Stock:
It is the supplies or commodities necessary for the conduct of the business.
Stock out cost:
There are cost associated with running out of stock. The evidence reason of these costs is the basic reason why stock are hold in the first place or instances these cost includes cost contributions through the lost of sales caused by labour frustration. Over stop pages. extra cost associated with urgent often small quality.
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