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CHAPTER ONE
1.0 INTRODUCTION
1.1 BACKGROUND OF THE STUDY
In business reactions, stocks are the assets of the organization in terms of materials, goods products that need to be replenished at its re-ordered level. Therefore, stock control process is the operation of continuously arranging receipts and documents relating to the materials to ensure that stock balance are adequate to support the current rate of consumption with one regards to economy. There are some problems associated with stock process of organizations, which include inadequate control of information, that is, there was no free flow of information relating to the stock, also accuracy in the financial information status, and as a result of these problems therefore calls for the computerized approach to stock keeping, monitoring and sales analysis.
1.2 STATEMENT OF THE PROBLEM
The following are the specification statement of the problem that necessitated the project:
(a) Customers time is wasted during search for an item in stock.
(b) Fraud and arithmetic error normally occurs in the use of bin card.
Therefore, using a computerized approach for stock keeping, monitoring and sales analysis, it will helps in reducing customer complains.
1.3 PURPOSE OF THE PROJECT
Here are objectives of the project:
(a) To reduce the lost of processing each unit of item
(b) To ensure that goods in stock are made know to the approach department
(c) To ensure that stock are replenished at re-order level as at when due.
1.4 SIGNIFICANCE OF THE PROJECT
(a) It point out the important of operating research in management secession.
(b) It makes the analysis of goods in stock faster and gasses management control.
(c) It makes decision making at managerial level easy and faster
1.5 SCOPE OF THE PROJECT
The following are the scope of the project:
(a) It considers how the customer consumes goods.
(b) It cores the sues record of stock in store
(c) It considers how goods are collected and received the store
1.6 LIMITATIONS OF THE PROJECT
Here are some limitations of the project:
(a) Lack of materials
(b) Time constraints
(c) In ability to get the data to be in time.
(d) Power failure
1.7 DEFINITION OF TERMS
(1) Stock Record: These are the documents which record, from day to day, full particulars of individual receipts, and issues balances of stock.
(2) Stock Taking/Checking: This is the process of physical verification of the quantities and condition of goods.
(3) “Order level: This is the quantity between the maximum and minimum stock figuring at which it is necessary imitate Porsche requirement for new supplies.
(4) Maximum Stock Level: Is the level at which stock should not be allowed to increase. In fixing this level, the best possible excepted conditions are used.
(5) Minimum Stock Level: Is the level at which stock should not be allowed to full. The level must be wait watched with cure because it is an indication of real change of Stock but which may result into production of sales stoppage.
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