1.1 BACKGROUND OF THE STUDY
Inventory control or management can be dated far back to 18th century, during industrial revolution and was called materials management control. It was bone out of European desire to develop industrially and for them to succeed it was pertinent to educate the people on the importance of effective management of resource and materials include, equipment, moveable and non-moveable. People did not realize that materials represent an equivalent amount of cash. For this reason efforts were channeled towards cash control only.
Since the beginning of second world war the movement of materials and material handling determinant of modern production. It was found during third period that in as much as it was important to control cash, the control of inventory exceeded that of cash, so in every economic activity such as trading maintenance and manufacturing etc. inventories are in form of finished goods, there is greater need to take appropriate care of inventories to ensure the attainment of estimated goals and objective.
To maintain effective and efficient inventory management the management is duty bound to control the stocks in a way to avoid stock outs, pilferage et.
Inventory record shows at a glance a more accurate picture of the position of stock on hand.
Money must not be tied up in unwanted inventories, man and machines are not at hand. The major goals of inventory control is to discover and maintain optimum level of inventory investment. Careful implementation of the methods of controlling the inventories facilitates the attainment of the organizational goals and objective.
Ensuring a balance of stock to avoid both shortages and excessive of material requires control and planning. Control plans must provided inventory acquisition with current estimate value. A decrease in estimate value will result to less acquisition of inventories, unless adjustments are made.
1.2 STATEMENT OF PROBLEMS
Inventory management in government stores or ministry administration is without doubt, with it problems and prospects. The government system, unlike business organization or enterprise is not a purely profit making organizations.
- The valuation and the method to use in valuation of unused inventories at the end of accounting year, ahs become problems because of different methods.
- it is prevent that some government and non government organization do not take appropriate control of their stock and this leads them to the “stock and Syndrome” which results in loss of profit and possible liquidation of the business.
- In government ministry, lack of stock and finance makes the whole system a mockery this gives room to the dividing fall in the value and standard in a developing country likeNigeria.
1.3 OBJECTIVES/PURPOSE OF THE STUDY
The followings are the main objective of this research work, is to find a lasting solution on how inventory management in government an non government organization can be maintained through the following heading.
1. Efficiency in maintenance of inventory and management.
2. To find how to guide against over and under stocking of materials.
3. To guide against and accumulation of obsolete materials.
4. To pretest against waste of inventories and paltering.
5. To find how to record income stock and balance same
6. To indicate quantity and value of stock at glance
7. To find out how training could enhance effective and efficient inventory management.
8. To make suggestions and recommendations that could enhance effective and efficient inventory management.
9. To make suggestions and recommendations that could useful in solving the identified problems.
1.4 RESEARCH QUESTIONS
- What are the three stock valuation systems adopted by the ministry of works and transport?
- How does the store department operate in terms of stock taking of inventories?
- What are the procedures in issuing out items of stock in the ministry of works and transports?
- What is the stock control system used in the department, namely manual or mechanical (computer system)?
- What is the name of store analyses used in ordering of stocks?
- Is there any penalty against any staff found with an unauthorized materials (s) of the ministry?
- What is the point of re-order level of stock or materials may be placed?
- What type of raw materials do Enugu state ministry of works and transport used in construction works?
1.5 SCOPE OF THE STUDY
The scope of the study is researching into inventory management inEnugustate, Ministry of works and transport.
1.6 SIGNIFICANCE OF THE STUDY
This research work is considered important because of the important role inventory management is expected to play in the life cycle of business inNigeriain government ministry and non-government organizations.
Efficiency and economy in management are rendered easier of attainment.
This research work is of good help to student on business career and those with interest in stock keeping and control.
It is extremely useful to manager of stock, who would wish to achieve optimum performance in business, the managers need to understand the general concepts and problem in stock or inventory managements.
Detection, location even prevention of waste and pilferage are facilitated.
The study will go a long way in improving the methods of receiving, issuing of stock and waste of valuable stock or materials.
This research work will help researchers on inventory management and control to further their work in the field. Student will therefore, benefit form this in researching into similar topics.
1.7 DEFINITION OF TERMS
1. Requistion Note - This is written by replenishment department to meet the article needed by each section.
2. Inventory card - A list of articles comprised in an estate, describing each
article separately and precisely so as to show what the estate consist at glance.
3. Store received Note - This entails the movement of goods to the requested section.
4. Store issues Note - This entails the movement of goods to the requested section.
5. Store Transfer voucher - This arise when three is misquotation of stock or surpluses tore transfer note can be raised to correct the same.
6. Bin Card/Tally card - Is a card attached to all items of stock for easy identification and instant picture of the balance of the article.
7. Inventory - This refers to all stock of item used within the production system or in the operation of the business of any organization.
8. Management - This is a process of combing and utilizing or allocating on
organization input (men money and materials) by planning, organizing, directing and controlling for the purpose of producing output desired by consumers so that the organization objectives are accomplished.
8. Management - This is a process of combing and utilizing or allocating on organization, directing and controlling for the purpose of producing output desired by consumers so that the organizational objectives organizational objectives are accomplished.
9. Inventory management - This entails regulation of inventory, combination of stock items, allocation and utilization of these stock items to achieve effectiveness and efficiency, so as to accomplish desired results or organizational objectives.
10. Stores - This refers to the stocks of items in the government store.
11. Consumable stores - These represent those items of materials that are used up immediately they are issued or purchase e.g fuel food stuff, spare parts etc.
12. Contro - This refers to process of restraining for checking the results of an experiment.
13. Stock - Means a store of goods available for sale, distribution or use.
14. Obsolescent- Becoming out of data or expired, out of use.
