Introduction
In an organization, it is very essential and need greater attention towards effort made to achieve and mandation an economic balance between the cost incurred and saved, by holding material in stock.
This process can be obtained by ensuring that the acquisition, storage, handling and usage of raw material are fully controlled at all times. This process is considered under the study of office inventory system which embraces, the total raw material to be used, work in progress and the stock counting of the finished goods.
Inventory then means the measured amount of goods, which varies in quantity overtime in response to “demand” process, which operates to diminish the stock and an “repleshement” process, which operates to increase it.
Due to fluctuating market prices of material in store, two system of valuation of issued of an inventory are adopted by most
Due to fluctuating market prices of material in store, two system of valuation of issued of an inventory are adopted by most organization periodic and office system, which was defined by new lexicon Webster dictionary as records maintained for a manufacturing business so that, they show a continuous inventory of such items as raw materials and goods in process.
For further implementation of this study, reference will be made to offices when the problems faced with inventory management is proposed to be narrowed down with the aid of computer to make work easier and to achieve accurate results, when updating files and also assessment of files.
1.1 Statement Of Problem
Generally, in inventory system, some of the problem encountered in relation to office inventory system are considered in three stages.
- The planning stage in how the raw material needed for production are gotten, what kind of raw materials needed too.
- Production stage
- The finished goods product. Before a product, the company or the organization encountered the problem of:
- Seeking for the consent of the marketing manager of the company on how profitable the particular product to be produced is in the market.
- Consumption pattern: This depends in the quality of the product, the quantity and the purchasing power.
- Problem of working off-take, this is the estimated quantity of product to be produced at a given period in time problem.
- Head − time problem.
- Not providing a competent coverage for the raw materials ordered for.
- Purchase of sub-standard materials, which could result to wastage and low quantity product, damaging of machine and will eventually affect the profitability of the organization.
- Having an unrealistic supplier.
Problem Associated With The Production
- The percentage permulation of the product, it should not be determined by assumption.
- Individual mistake
- Not putting the shelf of the product into consideration
Problem Associated With The Finished Goods.
- The order level of the production or stock level or consumption.
- The price of the product: It depends on the availability of capital and the opportunity to acquire item at low price.
- The risk of obsolescence and determination.
- The cost of stage and space available.
- Insurance cost
- Government regulation
- Transport cost.
- Improper stock counting
1.2 The Purpose Of The Study
The purpose of this study is to minimize the numerous setback associated with manual system of inventory system. These setbacks, tends to diminish the progress of many companies.
This project also serves, as a motivator to many organizations or companies by exposing the greeter advantages computer can be if effectively implemented.
Furthermore no major categorization of staff activity exists in the inventory system. However to appreciate how system carries out this functions to meet it’s set objectives various activities that take place in the system are described below:-
- The pre-order activities
- The order activities
- The receiving and checking activities
- Storing and distribution
- File updating
- Accounting and report activities.
1.3 Objective Of The Study
The main objective of this study is to maintain adequate stick level of the product by ordering acquiring and issuing while avoiding stoppages and consequent and increase cost of emergency action. And also relieve the management of the organization taking decision for every items carried in stock
- Receive and process request for materials needed for the products.
- Select relevant items needed for the product for ordering
- Ensure that orders are dispatched for immediately after completion for prompt supply of items
- Maintain a regular supply of raw materials of reasonable price and quantity and of a good quantity
- Ensure the follow up of ordered item when they are over due.
- The take of necessary action on the arrival of ordered items
- Prepare for payment of all items acquired by the company
- keep current records of the event occurring within the system.
- Compile a continuous report of the activities carried out during the specified period.
- Ensure that the various unit including the production unit stock unit and ware house receives the request on time.
1.4 The Scope Of The Study
In actual sense the scope of the problem of this study is narrowed down to ordering, stocking and delivering of the product out to customers and also the accounting and reporting of expenditure for all ordered and delivering made so find it reasonable to have the research to office inventory on stock of goods.
1.6 Definition Of Terms
Inventory:
It mans the aggregate of those items of tangible personnel property which are:
Held for sale in the ordinary cause of business.
In process of production for such sale. To be errantly consumed in production of goods or services to be available for sale.
Office Inventory:
A system of accounting for merchandise that provides a continuous record showing the Quantity and cost of all goods on hand. Also it is a carnival operation involving computing theoretical balance after each issues of receipt
Coverage:
Frequently used interchangeably with the word protection” or” insurance”. The extent the insurance afforded under an insurance contract.
Order:
A written instruction or commission to do something such as buy sell negotiate or supply.
Computer:
This is an electronics mechanical device that accepts input process it and relinquishes information at a fantastic rate.
Updating:
This is the process of adding and altering a master file so that it process a arrant status.
Minimum Level:
It is otherwise called the buffer stock it is set by the rate of consumption recorder level and lead-in-time and at this point stock will not be allowed to fall.
Maximum Level:
This is the stock level which must not be exceeded at all time and it is determine by the rate of consumption reorder level and lead-in-time (delivering time)
Lead-In-Time:
The time between when items are ordered and when they arrived and are available for us.
File:
A collection of related records
Shelf Life:
The duration a practical or production can stay before it expires
Economic Ordinary Quality:
This is a calculated reorder quality which immunize the balance of cost between caring cost and ordinary cost.
Plant:
A restricted sense building as the term “plant and equipment also machinery use for manufacturing process.
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