NEED FOR STOCK CONTROL AND STOCK KEEPING IN AN ORGANIZATION

NEED FOR STOCK CONTROL AND STOCK KEEPING IN AN ORGANIZATION

CHAPTER ONE

INTRODUCTION 
Stock control management and stock keeping comprises the policies and procedures which systematically determine and regulate which or what item are hold in stock and what quantities of item are held and to take the record of what or item in the stock. In industry as well as in the public sector organization, the “stores” has remained as one of the production department, and storage, whether of raw materials, partly processed work or finished products is part of the sequence of operations both cherical and physical, which starts as soon as the customers order or management decision to manufacture and completed by the dispatch of the finished product.
In industries where operation takes the place of manufactures the principles and procedures are eseatly the same. Stock control and stock keeping management can be defined as the act of managing stock in term of physical assets and production item. It also means the manner in which stock are organized in an undertaking a local authority or in the aimed force. The management of stock is therefore the responsibility of the stores manager or any such other designated specialist. This is also in line with the view of G.W. Aljian where he said in discussing the organization of duties for a mining concern, one of the success of minies was the store man who selected purchased receivers and delivers all article required stock control has much been neglated in some manufacturing companies in Nigeria and this has resulted in lower annual profit or even the total closing of the factories in support of this culvent said a member of management has to accept full responsibility for stock because historically, it faild to understand the requirement of stock and has denile stock personnel the right to think constructively”. The stock control for which the store manager has over all responsibility is avital part of many organizations. The stock manager work varies considerably in scope depending if he is working for a single shop retailer, small multiple shope, a large chain of stores etc.
It will therefore be importance to defined which is the stores management basic function, having outlined these, the next question that may reality come to mind it, what is the purpose of stock control? Stock control according to Morrison is process of marketing available the correct quality and quality materials as when required with due regard to economy in storage and order in cost, purchase price and working capital. No industrial unit public undertaking of subalantia size can manager efficiently without stock control and it must be fully recognized by all concerned. Handling material, which is one of the activities in store house and stockyard, is a costly operation and therefore needed efficient equipment the types of equipment used depend on the nature of the business the types or kinds of stock carried and the size of the accommodation. Some factor that affects the effective handling of material must be borne in mind when considering the types of requirement to be used some of the factors according to morrision in “storage” and control of stock includes.
– Position of the warehouse
– The cause of manual handling
– The movement of packaging income materials, economy of movement and the selection of suitable machine etc. Stock keeping has do with buying in bulk of raw materials and to help stock level. There are reasons for keeping stock time.
– The time lags present in the supply chain from suppliers to user at over stages requires that you maintain certain amount of inventory to use in this lead time” uncertainly-inventories are maintained as butters to meet uncertainties in demand, supply and movements of goods.
Economics of scale-ideal condition of “one unit at a time at a place where user needs it when he needs it” principle tends to income lost of cost I terms of logistic so bulk-buying movement and storage brings in economics of scale, thus inventory.
There are many types of stock but the three distinct ones are, pre-production, in-production ad post-production. These types have different method of control because of their nation.
The basic features all stock control system is that they are system designed to maintain supply by maintaining stocks and new order are mandated automatically by change in the stock level. Every time the stock drop to re-order as issued for a further supply. There are basically three main system of control.
1. A continuous stock control system
2. A periodic stock control system
3. A programmed order system.
The basic method of controlling stock by quantity is by means of fixing for each commodity stock level which are noted on the stock records subsequently used as a means of indicating when some action, is necessary. The activities involve in stock, control management and stock keeping is much not to talk about this benefit that will occur when it is properly operated. It is in this spirit and recognition at the import and role the profession will play in man power development of the country that the federal ministry government granted indisputed recognition of the Nigeria institution of purchasing and supply management to enroll and register both minitary personnel and student in higher institution of learn

NEED FOR STOCK CONTROL AND STOCK KEEPING IN AN ORGANIZATION