NEED FOR EFFECTIVE STOCK CONTROL IN A MANUFACTURING ORGANIZATION

NEED FOR EFFECTIVE STOCK CONTROL IN A MANUFACTURING ORGANIZATION

CHAPTER ONE

1.0 INTRODUCTION
Production operation will highly be hampered if the stores functions are not properly and effectively carried out. The basic stores functions is that of holding stock, thus, the need for proper stock control an becomes imperative.
Stock control in an organization involves activities designed towards the effective management and control of all inventory items held in stock. Stock control can be further defined as “a means by which materials of the correct quantity and quality is made available as and when required, with due regard to economy in storage and ordering costs, purchase prices and working capital” from the above definition, it could be deduced that stock control is a system aimed at maintaining a balance flow of materials by properly arranging, in a continuous basis, receipts and issues so that at any given time, the stock balances are adequate to meet current operational requirement.
Stock control, however, involves the actual implementation and carrying out policies which management has established to regulate and maintain adequate stock balance without excess or deficiencies.

1.1 BACKGROUND OF THE STUDY
It an exaggeration to say that stock control is an important exercise in which every organization that wants to be successful must embark on.
This issue stock control is not restricted only to business sectors and is no longer a new exercise for it has been as old as mankind.
As life is important to mankind, so also stock is important to every organization.
More so, materials or item are life-blood of any organization. With regards to this Obuseh (2006), noted that the manage materials is to manager the life of an organization. There is no adequate management of stock to have this; there must be a need for proper stock control in every organization. Due to the fact that a wide ranger of materials are held in the storehouse, the store keeper must be conversant with and have a good working knowledge of a great number of materials kept under his control.
The process of stock control involves a careful study of the materials that could be held in stock and the establishment of adequate stock levels for the materials. It also involves monitoring the inflow and outflow of materials into and out from the storehouse, setting the re-order quantities with due regard to lead time, the consumption rate, the acquisition and holding cost so that minimum investment in inventory is ensured. Therefore, it is important for every organization to establish a good stock control system if success is their target.

NEED FOR EFFECTIVE STOCK CONTROL IN A MANUFACTURING ORGANIZATION