Background of the Study
Inventory control is an extension of stores keeping and it has been in practice for a long time. It has a wide scope of activities today. Inventory control is an act of safe keeping some valuable items for future use and to produce them when the need arises. Inventory control goes beyond the scope of keeping and producing the items only but also involves controlling of operations, receiving, quality control activities, training of store staff, control of all store houses, stock handling as well as clerical documentation.
Inventory control can be defined as an art and science of achieving the objectives of inventory in an organization. It involves planning, organizing, staffing controlling and co-coordinating all the inventory operational activities for the provision of efficient services. Inventory control is a serving centre and the services to be provided must be meticulously handled, more organized to meet the demand of all units or department that constitute 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 (I.T) will make re-ordering of materials easy as the information are already in the computer. The use of information technology in controlling of inventory eliminates time wastages. This provision of services to the operating function must be fully appreciated. All other activities although they have their own relative importance are subordinate to this primary responsibility. The above central objective can be analyzed as follows:
Thus in any institution, private or public, some substantial amount is spent on the acquisition of materials, equipment etc. which are kept in the store house for future use. These items represent an equivalent amount of cash and have to be looked after, protected against unauthorized usage, until they are used for the intended purpose and duly accounted for.
A lot of costs are associated with keeping of inventory despite that; we must however hold stock to meet production needs and sales needs. This is because if we do not hold stock in sufficient quantity we stand the risk of running out of stock and incurring all the cost associated with stock out. Therefore, for an organization not to have the above mentioned problem it is important that they strike a balance between carrying too much stock (over stocking) and carrying too little stock (under stocking). The importance of profitability cannot be overstated, because that is the reason why organizations are in business, if inventory control is carried out properly, there will be increase in production and sales thereby increasing profitability for the organization.
Terms of Use: This is an academic paper. Students should NOT copy our materials word to word, as we DO NOT encourage Plagiarism. Only use as a guide in developing your original research work. Thanks.
Disclaimer: All undertaking works, records, and reports posted on this website, eprojectguide.com are the property/copyright of their individual proprietors. They are for research reference/direction purposes and the works are publicly supported. Do not present another person’s work as your own to maintain a strategic distance from counterfeiting its results. Use it as a guide and not duplicate the work in exactly the same words (verbatim). eprojectguide.com is a vault of exploration works simply like academia.edu, researchgate.net, scribd.com, docsity.com, course hero, and numerous different stages where clients transfer works. The paid membership on eprojectguide.com is a method by which the site is kept up to help Open Education. In the event that you see your work posted here, and you need it to be eliminated/credited, it would be ideal if you call us on +2348064699975 or send us a mail along with the web address linked to the work, to eprojectguide@gmail.com. We will answer to and honor each solicitation. Kindly note notification it might take up to 24 – 48 hours to handle your solicitation.