Introduction
1.1 Background Of The Study
Stock control is an important area of activity which is often neglected and underrated in many organizations both private and public sectors.
Stock control can be defined as a means by which materials of the correct quantity and quality are made available as and when required by taken due regard to economy in storage and the ordering cost purchasing prices and the working capital.
Stock control therefore involves the process of:
- Assessing the items to be held in stock
- Deciding the extent the stock holding of such items either individually or collectively
- Regulating the input of stock into the storehouses and
- Regulating the issue of stock from the storehouses.
To enable the stock controller to assess items to be held in the stock, it is necessary that he considers what items that are being used and produced by the particular company or organization, 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 material to absorb the effect of variation in both the delivery and consumption and also for the maintenance of read availability of supplies within the organization concerned. Naturally, it is necessary for held stocks of materials which are regularly used and also those items which may be required at short notice in the event of plant. We can define or describe stock control as a means by which materials or items of correct quantity and quality are made available when required and with due regards to economy in storage and cost of ordering, purchase price and working capital. Stock control can also be described as the function of planning and maintaining the right quantity of items for a given product or sales programmed with the minimum of investment.
Stock control has the following objectives
- To eliminate producing or sales delay by supplying the materials or items in a manner and quantity need at the specified time.
- To reduce the number of items which need to be carried etc. in order to achieve those objectives, the stock control involves two methods which can be controlled by quantity and be value. It is desirable to control in value.
Stock control in quantity is only bound to give an accurate result of every item that is kept at the proper level.
1.2 Statement Of The Problem
Certain conditions or factors can pave way for effective or ineffective stocking and verification. The problem of this study intends to get rid of are as follows:
- Lack of proper application of inventory control which indicates the physical balance of items in the supermarket
- Lack of proper application of stock level and documentation of items in the supermarket which indicate when replenishment.
- Items are strongly located in the store which exposes the items to deterioration and portage. This constitutes waste which drastically affects the supermarket’s profit maximization.
Despite all the importance and benefits of stocktaking it has from time to time record some drawbacks.
This study is therefore designed to identify such factors militating against effective and efficient stock control for better performance.
1.3 Objective Of The Study
It is necessary to have a 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 full realization by the individuals. The question is that to what extent it is implied in the social in order to achieve individual or co-operative goal. Subsequently, research work has been carried out based on the effective application of the stock control principles, techniques and practice in various organizations for the purpose of achieving a healthy economy in the organization.
In order to achieve effectiveness and efficiency in an organization of any scale or scope, this research work, therefore has the objective of revealing the neglected but important contribution of effective stock in an organization.
The following objectives to review are:
- To implement a stock control system.
- To determine through the analysis, the degree of the application of effective stock control in the farm product and materials.
- That the space utilization is achieved.
- Examine how optimum safety stock level is determined and maintained.
1.4 Scope Of The 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 Sungai farm 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 Sungai farm as a case study so as to carry out an in-depth study of the stock control in that agriculture sector.
1.5 Significance Of The Study
This study will be of benefit to the following person or group of persons.
The Government:
The government will be able to know how resources are being effectively managed and controlled in the public sector.
The Public Sector:
This study will help the public sector to know the need for proper stock control in an organization.
The Farm Managers:
This group of persons will be able to identify areas to intensify inventory management and control measures.
The Researchers:
Another significance of this study is that of the conditional degree in computer science. With its successful completion, the researcher will be qualified for the award of B.sc degree in computer science which enable the researcher to practice his profession.
Other students:
This study will also help other students who may want to carry out further research on this topic or related topics.
1.6 Limitation Of The Study
This study is limited to an extent. In the first place, the researcher was done alongside with my intensive lecture as regard to the researcher’s preparation for the final examination being a final year student. It became difficult to combine both the research work and other school activities.
Other limitations of this study include time, finance, non-response and distance.
Time:
Knowing full well that the researcher is still a study with much academic work load contend with as this project work has not been given any specific period in the researcher’s class timetable, the researcher has constrained to limit his areas of coverage so as to fall within the little time allowed and available.
Finance:
Taken congestion of the unhealthy economic situation of the country and would not expect the researcher who is still tied to the aprons strings of his parents to successfully carry out his research which involves huge financially outlay. This lack of fund also affected the research area as the distance was not track able.
Non-Response:
This was about the greatest limiting factors to this study. The research which was conducted in Best stores supermarket has relatively few employees, majority of them are new employee that lack adequate information to give while others were not prepared to compromise their job devotion with the information required by the researcher.
Distance:
The area of the research is far away from the school and this created a lot of problems in the researcher’s effort. With all these constraints, the researcher tries to accomplish this project work successfully.
1.7 Definition Of Terms:
Stock Control:
Stock control can be defined as the means by which materials of the correct quantity and quality are made available as regard to economy in storage and the ordering cost, purchasing prices and the working capital.
Replenishment:
This could be defined as the ability of making something fully again by replacing what he has used
Deterioration:
Can be defined as something to be worse in quality or condition.
Inventory:
This can be defined as the total number goods or materials available in a storehouse in a given period of time.
Material Control:
Material control section of the stores organization that is directly involved with the control of the flow of production material (in most cases) from the supplier to production centers.
Interference:
Can be defined as to get involved in and try to influence a situation that doesn’t concern you in a way that annoys other people.
Stock Out Cost:
These are costs associated with running out of cost. The evidence of this cost is the basic reason why stock are held in the first place or instance. Those costs includes cost contribution through the lost sales caused by labor frustration over stoppages, extra cost associated with urgent, often small quantity replenishment purchase etc.
Ordering Cost:
It is used in cases of raw material (suppliers) and includes the entire cost of acquiring in activities such as requisition, purchase ordering, transporting, receiving, inspecting, and storing (store placement) ordering cost increase in proportion to the number order placed.
Stock:
Can be defined as the supplies or commodities necessary for the conduct of the business.
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