The stock management in many business organization are often neglected and it is not realized that materials represent an equivalent amount of cash materials pilferage deterioration of materials and careless handling of stock loads to reduced profit or even losses so it is essential that to obtain the maximum advantage of cost accounting system and efficient and well equipped stocks management is required.
Inefficient stock manage leads to excess supply of stock which result in high storage costs excessive capital being locked up storage of valuable space losses and absolve whole a short supply results in reduced output and possible in danic buying.
Sales and purchase are the basic trading activities that give rise to profit and productivity. Stock movement is an indication of the level of business activity in a firm. This is because stock reflects the sale and purchase activities of the firm. Therefore stock are connected not only production but ultimately with productivity over sixty percent of firm cost production or capital is represented by the stock (materials) pilferage, deterioration of materials and careless hard of stock lead to reduced profit or even losses.
TABLE OF CONTENTS
CHAPTER ONE: INTRODUCTION
CHAPTER TWO: LITERATURE REVIEW
CHAPTER THREE: CONCLUSION
Reference
CHAPTER ONE
INTRODUCTION
The aim of this research work is to show how an efficient and good stock management in a manufacturing organization can affect the levels of efficiency on productivity of the firm.
Stocks account forms a substantial part of a company’s assets. It must be appreciated that stocks include raw materials components, partly finished good (work in progress) and finished goods ready for sale. Too much stock will unnecessarily tie down the resource of a company while too little stock will result in stock outs with its attendant problem eg. unsatisfied demand and costly arrangements to replenish stock etc. it is therefore necessary to have a middle of a road quantity of stocks at any given time.
Stock management function in the capacity of service and control groups within the firm. In other words it is service oriented from managerial viewpoint, stock exist for three reasons.
First, they provide a service to the production operation, it is difficult for a production organization to operate efficiently unless someone is specifically designated to organize and control the physical slow of materials into production.
Secondly, the stock organization acts as a custodial and controlling agency. It is responsible for the physical welfare and control of a substantial portion of a trans – current assets.
Thirdly, the existence of stock permit quantity buying and its attendant cost saving in price, proper work and handily the stock management in many business organization are often neglected and it is not realized that materials represent and equivalent amount of cash material most manufacturing firm on realizing the importance of stock try to achieve effective control of stocks by guess work thereby creating half baked stock management.
Sales and purchase are the basic trading activities that give rise to profits and productivity stock movement is an indicator of the level of business activity in a firm. This is because stock reflects the sale and purchase activities of the firm therefore stocks are connected not only with production but ultimately with productivity.
Over sixty percent of firms cost of production or capital is reprinted by stock (material) material pilferage, deterioration of material and careless handling of stocks lead to reduced profit or even losses. Inefficiency stock management or control leads to great supply of stock which results in high storage of valuable space, stock losses and obsolesce, while a short supply result reduced output and possibly in panic buying or even tock outs.
In studying or investigating these problems the following question need to be answered.
Profit?
Management?
Materials are one of the firm current assets which take about sixty percent of the firms capital yet the management of these materials has been neglected over the years. It is the main purpose of this study to a find out how efficient stock management could increase the efficiency and productivity.
a) Investigate the influence of poor staffing on efficient stocks control.
b) Determine how inefficient stock control could lead to stock- out and how stock out could lead to losses of customer’s goodwill and reduced profit.
c) To find out how stock location and layouts could bring about efficient stock management.
d) To find out how training could enhance efficient stock management.
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