CHAPTER ONE
1.0 INTRODUCTION
The store function is a vital part of industrial
concern, public and private undertakings. It is designed to snit the
particular moods of the organization itself. The expression store in
most organization is an area in which all kinds of materials intended to
be used in correction with production, distribution, maintenance,
packaging, operating activities etc. are stored, received and issued.
In other words “store” is a general terms describing
goods which are kept in soreness and stock lard, all needed for
production. It also covers finished products awaiting disport to
consumers, scraps and other arising and packagers hold pending return to
suppliers.
However, the range value and complexity of terms held by
any particular stores will depends upon the size and complexity of the
operations involved. Different types of organization have different
types of items in stock. For example, production operation will have raw
materials component parts, work-in-progress packaging and associated
materials. A distribution operation will have finished stock, component
parts and part completed work. An engineering and maintenance operation
will have spare parts tool, equipment, clearing and servicing materials.
It is the duty of the stores department to receive
materials or goods from all sources, consignment must be checked in
detail to ensure that proper quality and quantity have mean supplied
suitable document must be prepared for pocking of stock records and
stock account as well as to provide evidence of receipt with which
supplier will no cleared for payments. It also ensures interrupted flow
of physical material into introduction as well as guide against
unauthorized usage damages or determination of materials.
1.1 PURPOSE OF THE STUDY
The purpose of this is to contribute to the increasing
tendency toward the establishment of integrated stores department, this
providing for users. Also, this study will show between store control
and management can be improved upon to increase effectiveness and
consequently contributing to the profitability of the organization. It
(store department) therefore contributes positively towards the
achievement of the organizational goals.
1.2 STATEMENT OF THE PROBLEM
Many organizations are not deeply interested in the importance of store management and control in an organization.
The problem arises as a result of the evolution of store
management in many times of nowadays. In effective store management,
operation are traceable to the inability of a company to find possible
solutions to the problems of under stocking and overstocking which could
bring about a total stoppage of production in a manufacturing
organization and which could liquidate or folding the specific
organization.
Moreover, failure to implement the Economic order
quantity (EOQ) would definitely involve determination of materials,
obsolete, items and discrepancies in the record number an physical
number of materials.
1.3 OBJECTIVES OF THE STUDY
The aims and objectives of this study are to:
i. Bee the problems facing an organization in stock control process.
ii. Expose people to the area of profitability in store management.
iii. Reach people how to tackle the problems of overstocking
an understocking, which usually occur in manufacturing
companies
iv. Examine the effort of good store management and control in an organization.
v. Identify the methods of issuing and receiving material.
vi. Suggest ways by which the problems of store management and control can be solved.