INVENTORY AND STOCK CONTROL MANAGEMENT

INVENTORY AND STOCK CONTROL MANAGEMENT

CHAPTER ONE

INTRODUCTION

1.0 Introduction

An inventory control system contains a list of orders to be filled and then prompts workers to pick the necessary items, and provides them with packaging and shipping information. Inventory control may be used to automate sales order fulfillment process and also manage in and outward material of hardware. It is an automated system because of the replacement of human workers by technology. For optimal sales and inventory management process, robust functionality is needed for managing logistics facilities. Warehouse management functions for inventory control cover internal warehouse movements and storage and its support helps in the recording and tracking of materials on basis of both quantity and value.  This application takes care of all supply orders reducing cost for warehousing, transportation while improving customer service. It significantly improves inventory turns, optimizes flow of goods. It also improves cash flow, visibility and decision making providing efficient execution of tasks using this fast and reliable computerized method will bring about accountability.

The range of items and materials – stocks – which might be held in Stores is huge. The variety and quantity of items and materials held in the Store of a particular enterprise will depend on its size and on its range of activities. What we refer to as stock control comprises mainly the clerical and administrative functions of stores work. It involves:

• Ensuring that the right types and qualities of items needed for production, sale and distribution, are always available when required;

• Ensuring that stock is issued in the correct sequence, that is, “first in first out”, so that “older” stock is not allowed to deteriorate by being kept too long in the Store, for instance because it has been hidden from view by more recently received stock;
• Maintaining records showing the “movement” of items into and out of the Store, controlling and monitoring those movements and maintaining full records of the items in the Store;
• Ensuring that the correct “stock levels” of the various items are set and are maintained, that orders and reorders are made (or requested to be made) in good time, and that what is ordered is received;
• Checking, counting or otherwise measuring stock to ensure that records are accurate and that no losses are occurring due to pilfering, theft, damage or poor storage;
• Pricing and valuing the items in the Store.

1.1 Theoretical Background

Stock management, maintenance and control are a vital tool in any business. The tools which management use in its control is of vital importance. To know when to place order for a new item and update current status will depend on how information processing is handled. The current system operates manual inventory system, from stocks, products, ordering and purchases etc recorded in a book. This is faced with errors, incompleteness, and insufficient data for analysis. Information regarding stocks, products, sales and purchases are still in black and white which is not properly organized and managed. From the wholesalers to retailer bills, tickets, vouchers, receipts of products are recorded in a book but further operations are not being properly handled. The scope of inventory and stock control management also concerns the fine lines between replenishment lead time, carrying costs of inventory, asset management, inventory forecasting, inventory valuation, inventory visibility, future inventory price forecasting, physical inventory, available physical space for inventory, quality management, replenishment, returns and defective goods and demand forecasting. Planning and controlling of inventory management is concerned with the following three basic questions:  Which items and how much of them should be on stock?  Where to store them? And How is the re-order point defined?

1.2 Statement of the Problem

Bonanza supermarket Ikot Ekpene is to an extent manually operated and this raises a number of problems such as: The recording of sales and cash received are done manually on a book that appears rough. Thus, the books are exposed to physical damage, information can be lost and dust particles are accumulated. The long list of supply orders waiting to be attended to on daily basis. The control system is time consuming, less accurate and less efficient, and the environment is not user friendly. Inaccuracies often ensue from human error. The manual system is quite tedious and can be reduced or eliminated with the introduction of the proposed system. There is no automated system to track down the stock level of items as they are being sold.

1.3 Aim and Objectives of the Study

The aim of the study is to design and implement an inventory and stock control system that will enable the managers of supermarkets track inventory level as stocks are being sold.

The following are the objectives of the study:

• To automate the manual inventory and stock control management process
• To track stocks as they are being sold so as to know when to re-order or re-stock
• To provide a system that can facilitate the update of inventory and stock control records
• To maintain a database of inventory such that reports are presented when needed

1.4 Scope of the Study

This research work covers inventory and stock control management using Bonanza super market Ikot Ekpene as a case study.

1.5 Significance of the Study

The significance of the study is that it will automate the manual process of maintaining inventory thereby bringing about accurate computations and monitoring of stock level to avoid running out of stock. It will bring about accountability of stock for efficient management.

1.6 Organization of the Research

This research work is organized into five chapters. Chapter one is concerned with the introduction of the research study and it presents the preliminaries, theoretical background, statement of the problem, aim and objectives of the study, significance of the study, scope of the study, organization of the research and definition of terms.

Chapter two focuses on the literature review, the contributions of other scholars on the subject matter is discussed.

TOPIC:INVENTORY AND STOCK CONTROL MANAGEMENT

Chapters: 1 - 5
Delivery: Email

Number of Pages: 64

Price: 3000 NGN

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