ABSTRACT
The need for holding inventories in any service
organization is necessary. The space of the inventory will be properly
controlled so that the object of carrying or maintaining adequate inventory
lands at minimum cost can be realized the study therefore examined the system
of inventory control and management in Imo concord Hotel Owerri considering the
nature of the study and the organization a lot of data were generated from
questionnaire administration and proposal interview conducted on staff of the
organization.
Based on the method of data collection the
researcher found out that the system of inventory control is adequate in design
and effective in operation as regards the determination of stick levels which
could be attributed to the use of scientific method in determining the quantity
and time to order.
TABLE OF CONETENT
Title page - - - - - - - - i
Approval page - - - - - - - ii
Dedication - - - - - - - iii
Acknowledgement - - - - - - iv
Abstract - - - - - - - - v
Table of content - - - - - - vi
CHAPTER ONE
1.0 Introduction
1.1 Background of the study
1.2 Statement of the problem
1.3 Objective of the study
1.4 Scope of the study
1.5 Significance of the research
1.6 Definition of terms
CHAPTER TWO
2.0 Review of related literature
2.1 Background of inventory management and
control
2.2 Need for inventory control system
2.3 Selected theories on inventory control
policies
2.4 Safety stock
2.5 ABC analysis
2.6 Economic lots
2.7 Inventory evaluation methods
2.8 The effect of non- maintenance of inventory
control
2.9 The effect inventory policies in the control
hotel Owerri
Policies guiding the relationship between stores
unit and other departments.
CHAPTER THREE
3.0 Research design and methodology
3.1 Sources of data
3.2 Method of data collection
3.3 Method of data analysis
CHAPTER FOUR
4.0 Presentation and analysis of data
4.1 Introduction
4.2 Presentation of data
4.3 Analysis of data
4.4 Interpretation of result (s)
CHAPTER FIVE
5.0 Summary
5.1 Conclusion
5.2 Recommendations
References
Appendix
CHAPTER ONE
1.0 INTRODUCTION
1.1 BACKGROUND OF STUDY
Effective and efficient inventory control
management is a vital aspect of business management that must not be neglected
by managers. Recent advancement and technology in business activities have
generated the need for inventory management and control. For more than a decade
now, inventories were handled by a clerk in a routine manner without applying
the techniques of inventory but in recent times proper attention has been given
to inventory management and control.
It is of utmost importance that inventories be
well planned and impaltly controlled in order that it can contribute
substantially to the efficient growth of the organization. In the effect of
inventory control adequate care is taken in the assessment of the items cum
materials to be held in stock decide the extent of stock holding of items
individually and collectively and finally regulating the input and issue of
stock into and from store cum warehouse. Any management that neglects inventory
control will definitely run into costs that will generally reduce its corporate
profits. Shortages n inventory will interrupt production and will further lead
to losses. On the other hand if then is unintentional excess of stocking of
materials in inventories the organizations funds will be tied up in stock
instead of using if for other profitable purposes. It is of use factors that
any organization will decide on how much and how often to place order in order
to minimize the cost involved and equilibrate the total cost resulting from
excess stocking and under stocking. Therefore the importance of the effect of inventory control in the services
organization cannot be over emphasized.
1.2 STATEMENT OF PROBLEMS
Most organization do not realize the essence and
need for inventory control mechanism and because of this many of these
organizations can not final their feet
in business their inability to find their feet in business also include lack of
proper inventory system and so such as material inventory control
systematically controlled which resulted into excess inventory of hoods teeing up
of capital loss through obsolescence and deterioration. At the same time
shortages of materials have arises at the time when they are urgently needed
and with this operators are delayed. It is based on these problems mentioned
above that the researcher dimmed it fit to final out that the problems
associated with the effect of INVENTORY CONTROL of the services organization
ever, as it applies to the concord Hotel Owerri and also proffer solution
through this work.
1.3 OJECTIVES OF THE STUDY
Inventories are stock of finished goods and raw
materials kept for strategic reasons by organization.
Inventories are necessary to run the organization
more efficiently by keeping operation at a fair level rate and maintain optimum
stock levels. The objectives include determining the following:
Who makes inventory decision in the concord Hotel
Owerri?
What inventory control level is of utmost
importance to the concord Hotel Owerri?
If the systems in use in the concord Hotel Owerri
are working in line with the organization goal? And where this not the case, to
help suggest way of improving on their performances.
This study will help the concord Hotel Owerri to
recognize the problems invent in the management and control inventories in the
organization and how to solve the problems. Organization and on how to solve
the problems.
1.4 SCOPE OF THE STUDY
The researcher concern treated this work in the
concord Hotel Owerri due to the problems which are encountered in the course of
studying numerous organizations as it regards to finance. Thus this study is
limited with the continues of the operations of the concord Hotel Owerri.
1.5 SIGNIFCANCE OF THE RESEARCHER
This study with be of benefit to the following
persons or group of persons.
(a) THE GOVERNMENT: The government will be
able to know how resources are being managed and controlled in the services
organization.
(b) THE SERVICES ORGANIZATION: The
services organization will be able to know the need for a proper the effect of
inventory control.
(c) THE INVENTORY MANAGERS: This group of
person will be able to identify areas to intensify the effect of inventory
control measures
(d) THE MAMAGEMENT: They will be in
position to unless if the inventory targets or goals of the organization are
being achieved.
(e) THE RESEARCHER: Any researcher who may
so desire to carry out further research on this topic or related topic
(f) LIMITATION OF THE STUDY: Even though
this work is limited to concord Hotel Owerri the researcher still encountered
some problems and constraints in the course of this work which include:
FINANCE:
Lack of finance limited the areas which the researcher should have concord in
the course of this study.
TIME:
This is also a constraint since the research could not writ or reschedule
appointment for the appropriate stuff that is to produce the relevant data due
to limited time.
LACK OF RELEVANT TEXTBOOKS: This also formed a limitation because most
textbooks are outdated and were not able to treat the topic in its totality and
also coupled with our poor library system.
1.6 DEFINITION
OF TERMS
INVENTORY/STOCK: This is an ideal resource of any kind that possesses economic value
INVENTORY CONTROL: This is a managerial technique that tries to
maintain enough stock to meet reasonable fluctuations in demand
INVENTORY CONTROL SYSTEM: Is an operational system designed to provide
minimum inventory service to inventory users at a minimum cost to the
organizations management.
INVENTORY MANAGERMENT: Is a managerial responsibility that determines
and fixes the appropriate level of inventory of an organization
INVENTORY POLICY: This is a plan of action on statement of ideals
adopted by an organization that guide the operation of the inventory manager
SAFETY/ BUFFER STOCK: This is the minimum stock that is kept to
supply the incoming demands if the lead time is delayed.
LEAD/PROCURMENT TIME: Is the time internal between the placement and
the receipt of an order.
ORDERING TIME: This is the period inventories are ordered for replenishment of
stock
RE-ORDER POINT LEVEL: Is the inventory level at which the order must
be made
PURCHASE COST: This is the cost incurred in the placement of orders.
ABC ANALYSIS: This is managerial techniques that is developed for classifying
inventory items in their order of importance.
INVENTORY HOLDING COST: Is the cost incurred due to capital/ inventory
item being lied up in stock
ECONOMIC ORDER QUANTITY (EOQ): This is a system of inventory management used
when the stock level of a given item is not sufficient to sustain the
production operation until the next schedule review an order is placed
replenishing the supply.
SHORTAGE COST: It is the cost incurred when an organization runs out materials of a
particular inventory.
STOCK OUT:
It is a term used in the situation whereby an organization runs out of
materials of a particular inventory.
PILFERAGE COST: Is the cost incurred due to inventory keepers workers staling
inventory items from the stock thereby reducing the inventory level
PURCHASE REQUISITION: It is a prepared booklet used by the stock
control unit when new quantities of items should be order next
PYSICAL INVENTORIES: This is used to verify balances shown on the
perpetual inventory records and to obtain a correct account on all items of
inventory that may be on a control system
INVENTORY EVALUATION: Is when management compiles inventory valuation
in order to take inventory level decision and also provide data for financial
reports to internal and external parties.
SPECIFIC IDENTIFICATION: Is a method of inventory evaluation which items
of stock specifically identified by particular attributes are assigned their
value which have already been known
STORES REQUISITION VOUCHER: It authorizes the issuance of any class of
inventory item from a controlled or storage stock.
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