IMPACT OF EFFICIENT INVENTORY MANAGEMENT IN HOSPITALITY INDUSTRIES
ABSTRACT
As the topic states “The impact of effective inventory management in a hospitality industry” one will then assay that impromptu, manufacturing / hospitality industries, face a lot of inventory management problems. This is the around head of what the researcher tried to bring to force, to examine and analyze the possible causes to this problem.
The writer also defined the concept “Inventory management” and traced its origin and usage of methods applicable to its effective management. A step was also taken to suggest solutions by making constructive recommendations aimed at addressing the raised.
Some of the problems associated with inventory management are unavailability of raw materials; determination of optimum level of stock, as well as discrepancy between policy and practice in stock management.
In-depth research was conducted and the study retracted the need for management of inventory and its attendant benefits in chapter five.
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF STUDY
The organization goal of most business enterprise includes survival and growth, fulfillments of social responsibility and realization or maximization of profits. This level returns enable the company to take advantage of business opportunities, undertake research programmes and innovations which will further increase investment portfolio in the long-run; prompt discharge of her social responsibilities and its economic obligation to the members of the company. In order to maintain this formidable position, it becomes imperative that positive attempts must be made to minimize operational capacity of the business, increase production capacity and efficient marketing of their products to the consumers. However, one of the problem ways of achieving the most desired efficiency in business management is through reducing operational cost to a bearable level.
One major component of this cost reduction concept in many manufacturing organization that deserves the attention of management is through reducing operational cost to a bearable level.
One major component of this cost – reduction concept in many manufacturing organization that deserve the attention of management is the investment in “INVENTORIES” otherwise known as stock in most business enterprise, inventory or stock budgeting is the largest single item in the current asset of an industry. Improper management of stock level often contributes to most business failures. Inventories are mostly inputs used in the manufacture of a product and the components of stock are raw materials, work in progress (WIP) and finished goods. Raw materials are those stored for further production. Work-in-progress (WIP) is send – manufactured products. They present products that need further processing before they become and work – in – progress facilitates production while stock of finished goods are required for smooth marketing operations. Considering the large sum of money work – in- progress and finished goods, it there the becomes imperative that these “stocks should be managed efficiently in order to avoid blutant waste of resources that would have been channeled to other capital budgeting and investment. Any non challant attitude towards the management of a company’s inventory will be tantamount to putting the progress of the firm in jeopardy.
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