Inventory and material control techniques enhancing profitability in an organization is essential net to manufacturing firms but also marketing and service firms. The firms apply different firms of inventory control techniques to ensure that the required materials are available in the firm to forestall production or sales stoppages. Despite this immeasurable role of inventory control in the performance and survival of firms. Inventory control has been associated with certain costs which is not controlled increases the losses of the firm. There is the need to ensure that firms. There is the need to ensure that firms understand the importance of effective inventory management and implications of inappropriate inventory control techniques in oil producing firms. using WEST AFRICAN PORTLAND CEMENT COMPANY PLC as a case study.
Management disciplines in manufacturing concerns are becoming increasing dynamic with the passage of time. Many routine planning and central activities formerly performed by clerks have now developed into sophisticated functions, with far reaching effects on corporate objectives and profit potentials of the industry.
Inventory control as a vital element of material management is one of such functions in which the manufacturing concerns have now realized that inventory cost elements must be well planned co-ordinated and consist of total inventory cost must be optimized. Hence, there is need of well and effective control of inventory system.
Having the above in mind, Fred Hanssmn defined inventory as “An idle resources of any kind provided that such resources has economics value”.
On the other hand control can defined as:
“A performance for measuring actual performance against set down objective. Neglecting control of inventory may lead to high carrying cost, high rate of obsolesce and excess of tied up capital and even shortage can lead to an interruption in production, idleness of machines and personal disruption of work schedule and loss of sales which will eventually lead to low profit and as well as business to it grant.
The introduction of data processing computer machine on inventory control system has also extended to West African Portland Cement Company Plc Shagamu works. This has greatly lessened the burden of large information processing by manual devices.
Hence, if the inventory control system is properly designed, its good implementation will be carried out by the computer in time, coil, paper work and more accuracy and large information output. It is therefore the aim of this research to synthesis the various inventory control system. Examples in prospects and problems of each, analysis how official inventory control system contribute to the profit of the business organization, especially the organization in question, West African Portland Cement Company Plc Shagamu works.
In a nutshell inventory can be defined on the words of Lewis as “the scientific art of controlling the amount of stock held in various farms within a business to met economically the internal and external demand placed upon a particular business.
In recent years, inventory management has been given specialized departmental status along with clearly defined responsibilities and authorities.
Also, the high sophisticated business environment has made more successful inventory control practitioner who are completely different from what they used to be……..