STORE MANAGEMENT IN THE PUBLIC SECTOR OF THE ECONOMY

CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND OF THE STUDY

Advancement in all business activities has brought about store management. For the past decade, stores were handled by clerks in a routine manner. But in recent times, proper attention has been given to it. As a matter of fact, a well planned and effectively managed stores can contribute substantially to the organization’s growth and efficiency. Stores management is a vital element in the management of materials. However, before delving into this plight, it is appropriate to give the definition of stores in the public section because it means a different thing from what we learned under financial accounting and cost accounting.

According to federal Government financial regulation number 2101 “Stores include all moveable property purchased from public funds or otherwise acquired by Government. It is divided into allocated and unallocated stores. According to Monday Osirim (2012 p. 151) “The term stores in Government Accounting means stock or inventory of materials and equipment purchased with public funds for official use”. International Public Sector Accounting Standard (IPSAS) number 12 known stores as inventories. So, this topic can also be seen as “Inventory management in the public sector of the economy”. According to Okey, G.O (2011 p. 181)”Inventory management is the act of ensuring proper stock control”. It is very necessary that organization must try to asses the items 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 the stores house. Therefore, through this process, it is possible to adjust continuously the quantity and value of store held to conform to circumstance at all time. Store management is the clerical control of the movement of goods into and out of the stores, and of the level of stock in stores. Different store records cards are keep to known when stores fell to minimum stock level, maximum stock level, re-order quantity and re-order point. The success or failure of any organization depends largely on efficient systems of their store management, since store management is regarded as a procedure in which appropriate system containing information are fed to various departments for recording or action. Actually, different systems are operated in different organization in managing their stores. Some of these systems work out well while others fails in their purpose.