Attempt has been made in this project to discuss generally and analyze the impact of stock taking as a control measure in manufacturing company in Nigeria today, Dangote Flower Mills Ilorin is being chosen as a case study. Stock taking is an act of verifying inventory in the store while purchasing could be defined as the function which is responsible for the procurement of equipment, materials, suppliers and services required in an organization for the use of production in accordance with the standards perforation, in the most efficient and economical manner. This project is divided into five chapters, the chapter one present introduction of the topic, statement of problems, objective of study, significant of the study, scope of the study, limitation of study, historical background of case study and definition of terms. Chapter two deals with the literature review. Chapter three contains research design and methodology, area of the study, sample frame/population, instrument for the data collection, and methods of data research question. Chapter four presents presentation analysis of data, data interpretations, and analysis of data. Chapter five shows the summary of the findings, conclusion of the findings and recommendation. References.
Stock taking is the physical verification of the quantities and condition of items held in an inventory, as a basis for accurate inventory audit and valuation. Stock taking is necessary to ensure that the stock records are accurate.
Regular stock taking is an essential element of a loss minimization strategy. The process helps you to compare actual stock levels with the stock levels based on your ordering records.
A company is expected to maintain adequate stock of material for a continuous supply of raw material to the factor for an interrupted production It is not possible for a company to procure raw material whenever it is needed, and more so the finished goods manufactured by a company cannot be sold of the sometime, a time log exists between demand for material and supply.
The procurement of material may be delegated because of such factors as strike, transport , disruption, short supply etc therefore there is a need for a firm to maintain sufficient stock of raw material at a given time to streamline production to maintain the concept and conservation of account. The continuity existence to adequate raw materials for economics purpose.
The control of inventories and management of store house in common with the other major branches of commercial and individual work become specialist activities.
The stores should be considered as a temporary location for materials needed for operational purpose and should be planned, organized and operate in such a way that the period of residence of each stock items is as short as possible consistent with economic operation.
In general, if demand is steady or highly predictable then we should store for very short period if at all when demand is highly unpredictable then storage for longer period may be necessitated.
There is no standard system of store keeping which and universally recommended or applied but in the course of me certain principle and practices of more or less general application haven been involved large sums of money are involved and it is essential or organic to stock management or sores function so that the investment is kept to the minimum from the stores point of view the most important thing is to keep the quantities of incoming goods in their appropriate and respective position and necessary records and transaction follows immediately shortage must be avoided or else production line will have to stop.
At the same time for much must not be delivered or it will clog up the ware house and perhaps also the production area, apart from the fact that excess deliveries will be tie up more capital.
It is well known that most materials will determined in store in the course of time and the fact that a building is provided for storage in itself an acknowledgement that some degree of production is required.
Large stores are generally term describing goods which are hold in storehouses and stock yards.
The bulk of those goods usually intended for this in connection which production or operation activities, but the expression “stores” also course finished product waiting to suppliers.
The store plays an important role in advisory on the quantity of items to be stocked, and disposal of obsolete materials.
The objectives of store function are: –
- To make available a balance flow of raw materials components tools equipment and any other commodities necessary to meet operation requirements.
- To provide maintenance materials spares and general storage for community of existence.
- To receive and issue work — in — progress and finished production. Production is not completed until it goes to final consumers.
- To accept other discarded materials as it arises.
- For the efficient operation of the stores system and for the achievement of the stated objectives. It is necessary for an organization to have a strong stock control procedure.
A great attention should be focused on the operation of the stores because of general scarcity of materials vis — a — vis the higher cost of material and equipments.
The rationale behind stock or inventory management or stores function involves: –
- What things to keepings stock
- When to order those things
- What quantities of them to order
Most factories stock some very expensive items as well as some very cheap one and use some perhaps once in a year while other may be required at a rate of hundred in a day in deciding what to stock, unit cost, rate of usage, lead time, deterioration, obsolescence, stock facilities and capital must be carefully considered.
It is therefore follow that before a system of storage and stock control can sensibly be desired account must be taken of the nature and need of the organization.
1.2 STATEMENT OF PROBLEM
This study is aimed at finding out the following problems facing manufacturing industries with particular reference to stock taking as a control measure.
- To verify the accuracy of store record
- To compare the balance sheet records with physical verification.
- To disclosed the possibility of fraud (Thief /Loss)
- To reveal if there is any weakness in the system for the custody and control of stocks.