THE NEED FOR EFFECTIVE STOCK CONTROL IN AN ORGANIZATION
(A CASE STUDY OF JACOBS WINE LIMITED MGBIDI)
A RESEARCH PROJECT SUBMITTED TO THE DEPARTMENT OF PURCHASING AND SUPPLY, SCHOOL OF BUSINESS AND MANAGEMENT TECHNOLOGY,
FEDERAL POLYTECHNIC NEKEDE OWERRI, IMO STATE.
IN PARTIAL FULFILLMENT FOR THE REQUIREMENT FOR THE AWARD OF NATIONAL DIPLOMA (ND) IN PURCHASING
This project has been read and approved for the department of Purchasing and Supply Management, School of Business and Management Technology Federal Polytechnic, Nekede Owerri.
MR. --------------------- Date
MR. ------------------- Date
(HOD Purchasing and Supply)
External Examiner Date
This project work is dedicated to God Almighty who has kept us alive throughout our academic endeavours. To him be the glory.
I wish to acknowledge my parents Mr. and Mrs. ----- for their love, guidance and care towards my pursuit in life. I say my God bless them in Jesus Name.
I also thank my project supervisor for his effort towards making this project to be a reality. I also acknowledge the contribution of my lecturers for their impact in my lecturers for their impact in my field of studies may God bless them all.
Thanks to my admirable siblings who has been strength financially and source of encouragement may you all be bless in Jesus name.
And also my admirable brothers ------------------ and -----------, Mrs. ---------- of there support towards my academic may God bless them all.
This study focuses on the need for effective stock control in an organization references to Jacobs Wine Limited Mgbidi. Effective and efficient stock control involves assessing these items to be held on stock deciding what and when to stock, regulating the issues of stock from the store house. From the data, an effective and efficient stock control is order to give rise to the organization productivity and at the same time reduce or completely eliminate redundancy and represents money and has a direct relationship with the profitability and liabilities of our firms.
TABLE OF CONTENTS
Title page i
Table of contents vi
1.0 Introduction 1
1.1 Background Of The Study 2
1.2 Statement Of Problems 5
1.3 Objectives Of The Study 7
1.4 Research Questions 7
1.5 Significance Of The Study 8
1.6 Scope Of The Study 9
1.7 Limitation Of The Study 11
1.8 Definition Of Terms 11
2.0 Literature Review 15
2.1 Definition Of Stock Control 16
2.2 Aims Of Controlling Of Stock 18
2.3 Point To Consider When Controlling Stock 19
2.4 Method Controlling Stock 21
2.5 Stock Levels 23
2.6 Characteristic Of Stock Control Systems 27
2.7 Importance Of Stock Control 27
2.8 Stock Turn Over 28
2.10 Controls For Returnable Container 31
3.0 Research Design And Methodology 32
3.1 Research Design 33
3.2 Source/Method Of Data Collection 33
3.4 Population Of Study And Sample Size Determination 35
3.5 Sampling Techniques 37
3.6 Validity And Reliability Of Measuring Instruments 38
3.7 Method Of Data Analysis 39
4.0 Presentation And Analysis Of Data 40
4.1 Presentation Of Data 40
4.2 Analysis Of The Data 41
4.3 Interpretation Of Result(S) 46
Summary, Conclusion And Recommendation 47
5.1 Summary 47
5.2 Conclusion 48
5.3 Recommendations 49
The purpose of this work is the need to maintain high standards of audit work. The purchaser may be held liable for negligence in a particular circumstance where an organization or person suffers loss or change as a result of the failure of a purchase to discourage the fiduciary duty imposed on him by law that may be liable for negligence may be instituted against him in a court of law. To ensure that the quality of audit work is still high he should then establish a means of maintaining the job on his behalf is case of purchasing and stock control parishioners these are job on his behalf, is case for purchasing and stock control parishioners, these are Jacob with many pressures from clients to maintain their fee levels or even reduce them. This may not be unconnected with the present economic condition in the country which is holding almost all business organization in most companies, unlike the case study of this project on organization the stock control firms are made to perform both the purchasing and stock control discuss the meaning of audit, management reason for audit recording and control. The purchasing operational standard states that, the purchasing should satisfy himself as to quality of world delegated to others in so doing he should establish adequate control procures. The control procedure will include proffer allocation of staff of appropriate ability proper briefing of staff and review of the work done by others.
There are also improvement in areas like decision making regarding the assets and ensuring the completeness and accuracy of the organizations books. Even thought it is not the duty of the purchasing to take check, he should satisfy himself as to the validity of the amount attributed to the assets in the accounts which are the subject of the audit in determining the nature and extent of the audit steps necessary for its purpose. It was found that the purchasing examined the system of organization control in order to access its effectiveness relative to the ascertainment and evaluation of stocks.
1.1 BACKGROUND OF THE STUDY
The focal point of this research work is the Jacobs Wine Limited Mgbidi that is why is an organization Jacobs Wine distilling firm in located in Mgbidi, Imo State, it was established in 1985 by Dr. Jacob Frame (PHD) and was later in cooperated in 1989.
The company is committed to integrating suppliers into their long-term business process; this is done by early involvement of their supplier into their business plan to encourage good buyer/suppler relationship. Jacobs Wine is involved in large scale production of Pineapple based wine. Their wine remains the first and only.
Commercial pineapple urinary if Africa and Secondly the world, the company has the following range of product, Jacobs pineapple wine Jacobs Candid Pineapple and Jacobs Top Man Wine while the spirit includes addles dry in and top Br. Brendy the companys production capacity Perannu Ts1.09million letters.
As a matter of policy Jacobs Wine Mgbidi is committed to giving its numerous customers both in migrant and across the shores goods value for their money right from inception the companys match word is quality a policy which it has maintained which as made their product enjoy consumer preference and high patronage in the face of competition.
1.2 STATEMENT OF THE PROBLEMS
Another problem encountered in this work is centered on the absence of the organization purchasing in the office due to some circumstances that led outside office due to numerous tours their expectation are lecturers. Cut off the extensively of stock control lectures, two will discuss matter relating his expected holders in an enterprise where he acts as on purchasing since our major concern in these lecturers is the statutory purchasing matters relating to are adequately covered by the companies and Allied Matters Degree (CAMA) in 1990 is as follows first appointment. The first director of a new organization can make the first director of a new organization can make the first Director of a new Organization can make the first Annual Genera Meeting (AGM) of the company were the first directors made the appointment the shareholder are at liberty to either ratify the appointment or reject it is the favour to appoint the purchase to resides with the share holders but where the share holder intent to reject an purchasing appointed by the directors, they must give fourteen days noticed to the directors. Subsequent appointment by this, the purchasing of any organization are appointed by this, the purchasing of any organization are appointed at the Annual General Meeting (AGM) to hold office form the conclusion of the next meeting of the company.
A retiring purchasing shall be appointed to continue in office without passing any resolution except. It is disqualified former appointment of the Annual General Meeting (AGM) a resolution appointing another purchasing or dropping the retiring purchasing has been properly passed the organization has received a notice of his unwillingness to continue if office.
1.3 OBJECTIVES OF THE STUDY
Effective and efficient control of stock by a manufacturing firm has a significant impact on its productivity and profitability.
Also, there is no relationship between the stock standardization and overall productivity of the firm.
Again, the nature of relationship between the purchasing store and other department has a transparent effect on their general performance and efficiency.
1.4 RESEARCH QUESTION
It is necessary to establish some research question that will serve as a guide to the study the research questionnaire.
1. To what extent does stock control affect the administration of the organization.
2. To what extent does stock control affect the profitability of the organization.
3. To what extent do the stock professional activities affect the growth of the organization.
4. To what extent does the stock control affect the profitability of the organization.
5. To what extent does stock management affect the profit making of the organization.
1.5 SIGNIFICANCE OF THE STUDY
This study will help study in the country to acquire greater skills and knowledge and also will help the company where I used for the case study.
In the researchers side, it will help to know more about controlling of stock, how to stock, code and record items in stores and also how the duties of the workers in the stores.
The study will also help other researchers to acquire more knowledge and make correction where necessary in the former knowledge they have about the topic stock control.
An organization, Jacobs Wine corrects necessary mistakes they make which were found during the research for instance, they know the impact of effective and efficiency of stock control. They have also known the need to employ professionals in the various department like the industry, the learning and the researcher.
1.6 SCOPE OF THE STUDY
Since the study had reviewed the organization stock control in companies, the investigation carried out as a case study, the major problem of social research is that of conviction of the officials taken as a specimen. However, one needs a lot of explanation and persuasion to get the co-operation of such respondents. So having death with the project and assessed the extent of the work involved in the study was confronted with such problem ranging from lack of the result of this study may be of use of the following groups of people.
1. The result will help to Jacobs Wine to enable the organization know the importance of stock-control and how it enhances the profit of the organization.
2. It will help to better way of conducting stock control and has contributed to the profit making at the organization.
3. Finally, it is hoped that the result obtained from this study shall be at immense benefit public who may stumble on this work and this would discover how stock control enhance profit making in an organization.
1.7 LIMITATION OF THE STUDY
One of the major constraints of this study was lack of finance to go around collecting data from the respondents in addition, some works in the organization were afraid to give accurate information for fear of victimization.
Again, it was not possible to go through all the document concerned because some document were classified as secret document therefore were meant for any other persons consumptions. The researcher was disappointed to not the were very few books from which to draw reference.
1.8 DEFINITION OF TERMS
To ensure a proper understanding of what the terms is all about, some unfamiliar words to those who are not in the same field are defined as they are appear in the project. This is also beneficial to these groups of people who might make this study useful by way of making use of them now or in future.
Organizational purchasing by definition, it is an independent appraisal activity within an organization for the review of purchasing organization and other operation as a basic for service to the management of the person who does the above job is know as organization purchasing.
A systematic operation of continuously arranging receipts and issues so that stock balance are adequate to supply the current rate of consumption without experiencing deficit or carrying too much excess stock.
It is the whole system control, financial and otherwise establishment by management in order to carry on the business of the enterprises in an orderly and efficient manner, ensure adherence to management policy, safeguard the assets and secure as for as possible the completeness and accuracy of the records.
It is an independent examination off and expression of an opinion of the financial statement of an enterprise by an appointed purchasing is pursuance of that appointment and in compliance with any relevant statutory obligation.
The practice of checking goods as they are being produced to make sure that they are of a high standard.
That act or skills of directing, organizing the work of a company or organization. Management activities those activities that are destined for management such as directing, planning, staffing and coordinating.
Purchasing procedures are a set of activities to be executed for the accomplishment of a purchasing task.
A. Morrison (1977) storage and control of stock for industry and public under takings. 2nd edition, Pitman Publishing Limited, London.
Adin, B.T. (1980): Stock control in manufacturing industries 2nd edition, Gower Press Great Britain.
David Jessop & Alex Morrison (1994) Storage and Supply of materials Pitman Publishing, London.
Kenneth Lysons and Gillingham (2003): Purchasing and Supply Management.
Udoh Chris M. and Oyeoku O.K (2009), Stores Operation and Management Gastony & Associates Nig. Ltd.
Uzor A.M. (2003), Practice Store Management Bon Publication, Owerri Nigeria.
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