The Assessment of Inventory Keeping Methods and Impact on Stocks Availability in a Manufacturing Company
CHAPTER ONE
Objective of the study
The objectives of the study are;
- To determine to what extent the ineffective management of inventory in Kasapreko company limited has caused low productivity in the company
- To ascertain whether the company has suffered from poor management and control of inventories.
- To find out the relationship between inventory keeping and stock availability in Kasapreko company limited
CHAPTER TWO
LITERATURE REVIEW
CONCEPT OF INVENTORY
Inventories are vital to the successful functioning of manufacturing and retailing organizations. This is because many companies hold inventories as part of their business operation. Inventories make up the most significant part of current assets of most companies especially the manufacturing companies. The need for management to ensure inventory
control if properly managed cannot be over emphasized. A firm neglecting inventory management will be jeopardizing its ling run profitability and it may end up failing in its business. The definition of inventory has been defined by many professional bodies and scholars in different ways. The Microsoft Encarta premium defined it as the quantity of goods and mateials on hand. A manufacturer’s inventory represents those items that are ready and available for sale. According to Nwaorgu (2005:123), inventory can be defined as a tangible property held to resale in the ordinary course or business, in the production for sale, to be consumed in the production of goods and services
According to Jain (1999:472), inventory is the aggregate of these items of intangible property which are held for sale in the ordinary cause of the business, held in the process of production for such sales to be currently consumed in the production of goods and services to be made available for sale. According to Morse (1997:454), inventory is a general term describing goods which are held in the store house and stock yards, the bulk of which is usually intended for the connection with production or operation activities and also finished products awaiting dispatch to customers. However, according to Ama (2000:209), inventory is the stock of goods a firm is producing for sale and the components that make up the goods.
A key decision in manufacturing and retail is how much inventory to keep on hand. Once an inventory level is established, it becomes an important input to the budgeting system.
CHAPTER THREE
RESEARCH METHODOLOGY
INTRODUCTION
This chapter covers the research design, the area of the study, the population of the study, the determination of the sample size, and the sources of data method of data analysis, validity of the test and the reliability of the test.
RESEARCH DESIGN
The research design adopted in this work is the survey design method which comprises of the use of questionnaires and oral interviews.
AREA OF THE STUDY
The area of the study is limited to Kasapreko company limited located in Accra in Ghana
CHAPTER FOUR
DATA PRESENTATION AND ANALYSIS
INTRODUCTION
This chapter deals with the presentation and the analysis of the data collected from Kasapreko Company limited. A total number of 52 questionnaires were distributed of which 40 were completed and returned. Relevant mathematical and statistical tool will be used in the presentation and analysis of data derived from the questionnaire.
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATION
Introduction
It is important to ascertain that the objective of this study was to ascertain the assessment of inventory keeping methods and impact on stocks availability in a manufacturing company. In the preceding chapter, the relevant data collected for this study were presented, critically analyzed and appropriate interpretation given. In this chapter, certain recommendations made which in the opinion of the researcher will be of benefits in addressing the challenges of the assessment of inventory keeping methods and impact on stocks availability in a manufacturing company
Summary
This study was on the assessment of inventory keeping methods and impact on stocks availability in a manufacturing company. Three objectives were raised which included: To determine to what extent the ineffective management of inventory in Kasapreko company limited has caused low productivity in the company, to ascertain whether the company has suffered from poor management and control of inventories and to find out the relationship between inventory keeping and stock availability in Kasapreko company limited. The sample size used for this study was 52 out of 500, using a systematic random sampling. However, having analyzed the data the following are the findings which were deduced from this study.
Conclusion
During the course of the study on the assessment of inventory keeping methods and impact on stocks availability in a manufacturing company, it was discovered that inventory is the bedrock in the existence of any manufacturing firm and effective management of inventory will lead to effective control of the organization. However, whatever system or technique of inventory management, it much be channeled towards the reduction of stock to the barest minimum. These inventory techniques should be monitored to ensure its effectiveness.
Therefore, from the results of the data analysis it is right to conclude that inventory management has not been very effective in Kasapreko company limited and this is as a result of the fact that inventory policies are not strictly adhered to. Therefore, efforts are needed to be made in order to improve on these present situations.
Recommendation
The company should try by all means to adhere to inventory polices made. A situation is a case whereby materials or items are allowed to leave the stores without proper requisition, this shows that the internal control is weak. In order to ensure that the company adheres to inventory policies, under no circumstance should items of inventory be allowed to leave stores without proper requisition
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