Relationship Between Inventory Control System free essay sample

This duty has to be done closely with the project finance manager who holds the project fund. His duty is to give information to procurement officer of the fund available for procurement and priorities as provided by the budget. He has also the responsibility of insuring that procurement law and procedures has been properly followed An inventory system provides the organizational structure and the operating policies for maintaining and controlling goods to be stocked. The system is responsible for ordering and receipt of goods then issuing to users. 1. Statement of the problem The project procurement officer has the duty to insure that supplies are available all the time they are needed . Most of the supplies needed consist of stationeries, cartridges, Computers and its accessories, field equipments and tools. It is important that these are obtained on time when needed by staff at the same time the procurement officer should observe the budget and avoid tying a lot of money in stock. We will write a custom essay sample on Relationship Between Inventory Control System or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page Managing stock effectively is important for any business, because without enough stock, production and services will slow down . 2 Research questions This study aim to answer the following questions I. What are the purposes of inventory? II, what are the inventory costs? III. What are the purposes of inventory? IV. What is the good inventory system? The costs associated with maintaining the system needed to track orders are also included in ordering costs. 2. 2. 4 Storage costs When the stock of an item is depleted, an order for that item must either wait until the stock is replenished or be cancelled. There is a tradeoff between carrying stock to satisfy the demand and the cost resulting from stock out. This balance is sometimes difficult to obtain, because it may not be possible to estimate lost profit, the effect of lost customers or lateness penalties 2. 3 Purposes of Inventory. To maintain independence of operation. A supply of materials at work center allows that center flexibility in operation. To meet variation of product demand, if the demand is known precisely it may be possible to produce the product to exactly meet the demand. Usually, however the demand is not completely known and a safe or buffer stock must be maintained to absorb variation. To allow flexibility in production scheduling, a stock of inventory relieves the pressure on the production system to get the goods out. This causes the longer lead time, which permit production planning for smoother flow and lower cost operation through longer lot size production. To provide safeguard for variation in raw materials delivery time. , When materials are ordered from vendor ,delay can occur for variety of reasons such as normal variation in shipping time, a shortage of materials at vendor’s plant, lost of order , shipment of incorrect or defective material. Other purposes includes to hedge against price increases, to permit operations and take advantage of quantity discounts Stock levels Minimum stock/Buffer stock This is the stock level which the organisation should not fall below it. Maximum stock This is the stock level which the organisation reaches immediately after the receipt of new stock. Reorder level This is the stock level where a placing of new order is necessesary Economic order quantity CHAPTER 3 Research methodology The study was conducted in Wildlife conservation society (WCS), the primary source of data was obtained through questionnaire and interview. By using questionnaire, the study involved a sample of six staff in each department to get their response on the subject matter. The organization has two tree department namely finance and administration, research and education. By using interview, employees were asked questions to assess the relationship between customer services and inventory management System. CHAPTER 4 Research findings There is a strong relation ship between customer services and inventory management system. When employees get what they need on time it contributes positively on their altitude towards the organization. It increases the feeling that the organization values their input to the organization. The inventory management system contributes in improving the performance and working morale of the WCS – SHCP staff.