THE IMPACT OF STOCK MANAGEMENT ON THE SUCCESS OF AN ORGANISATION CASE STUDY: RWENZORI BEVERAGES (U) LTD

TABLE OF CONTENTS
ABSTRACT
TABLE OF CONTENTS
LIST OF TABLES
LIST OF FIGURES

CHAPTER ONE
1.0 INTRODUCTION
1.1 BACKGROUND TO THE STUDY
1.2 STATEMENT OF THE PROBLEM
1.3 PURPOSE OF THE STUDY
1.4 RESEARCH OBJECTIVES
1.5 RESEARCH QUESTIONS
1.6 SCOPE OF THE STUDY
1.6.1    Content Scope
1.6.2    Geographical scope
1.6.3    Period Scope
1.7 SIGNIFICANCE OF THE STUDY
1.8 OPERATIONAL DEFINITION OF TERMS

CHAPTER TWO: LITERATURE REVIEW
2.0 INTRODUCTION
2.1 STOCK MANAGEMENT
2.1.1    Types of stocks held in organizations
2.1.2 Raw materials
2.1.3 Work in process
2.1.4 Finished goods
2.1.5 Maintenance repair and operating supplies (MRO)
2.1.6 Transit stock
2.1.7 Theoretical inventory
2.3 STOCK MANAGEMENT METHODS
2.3.1 Manual Stock Management
2.3.2 Computerized Systems
2.4 STOCK TAKING
2.4.1 Periodic Stock taking
2.4.2 Continuous Stock taking
2.4.3 Stock Discrepancies
2.5 COSTS INVOLVED IN STOCK MANAGEMENT
2.5.1    Carrying costs /holding costs
2.5.2 Purchasing costs
2.5.3 Quality costs
2.6 DETERMINATION OF STOCK LEVELS
2.6.1 Reorder level
2.6.2 Minimum level
2.6.3 Maximum level
2.6.4 Buffer stock / safety stock
2.6.5 Economic Order Quantity
2.7 FACTORS AFFECTING STOCK LEVELS
2.8       MODERN TECHNIQUES IN STOCK MANAGEMENT
2.8.1 Just in Time stock management technique (JIT)
2.8.2 Vendor Managed Inventory
2.8.3 Material Requirement Planning (MRP)
2.9 ORGANIZATIONAL SUCCESS
2.10 THE RELATIONSHIP BETWEEN STOCK MANAGEMENT AND ORGANIZATIONAL SUCCESS
2.11 CONCLUSION

CHAPTER THREE: METHODOLOGY
3.0 INTRODUCTION
3.2 STUDY POPULATION
3.3 SOURCE OF DATA
3.4 SAMPLING PROCEDURE
3.4.1 Sample size
3.5. DATA COLLECTION
3.5.1. Questionnaires
3.6 STUDY VARIABLES
3.7 DATA PROCESSING AND ANALYSIS
3.7.1 Coding
3.7.2 Analysis
3.7.3 Editing
3.8 DATA PRESENTATION AND CONCLUSION
3.9 LIMITATIONS OF THE STUDY

CHAPTER FOUR: DATA PRESENTATION, ANALYSIS AND INTERPRETATION OF FINDINGS
4.0 INTRODUCTION

CHAPTER FIVE: DISCUSSION OF FINDINGS, CONCLUSION AND RECOMMENDATIONS
5.0 INTRODUCTION
5.1 DISCUSSION OF FINDINGS
5.1.1 ESTABLISHMENT OF INVENTORY MANAGEMENT SYSTEMS AND TECHNIQUES IN PLACE
5.1.2 COSTS ASSOCIATED WITH HOLDING INVENTORY IN AN ORGANIZATION
5.1.3 MEASURES OF SUCCESS IN AN ORGANIZATION
5.1.4 THE RELATIONSHIP BETWEEN STOCK MANAGEMENT AND ORGANIZATIONAL SUCCESS
5.2 SUMMARY OF FINDINGS
5.3 CONCLUSION
5.4 RECOMMENDATION
5.5 AREAS FOR FURTHER RESEARCH

APPENDIXES
APPENDIX I: REFERENCES
APPENDIX II: QUESTIONNAIRE FOR THE STAFF OF RWENZORI BEVERAGES (U) LTD

ABSTRACT

The study on the Impact of Stock Management on organizational success was conducted in Mukono district using Rwenzori Beverages (U) Ltd as a case study. A total of 30 respondents were selected as representative sample departments of purchasing, production and stores.

The objectives of the study were, to establish the inventory management systems and techniques in place, to find out the costs associated with holding stock in an organization, to establish the measure of success in an organization and to establish the relationship between stock management and organizational success

The findings indicate that Rwenzori Beverages hold stock. The findings reveal that there is formal stock management and several techniques are applied to manage stock which includes stock taking and inventory level tracking.

The research further reveals that many factors combine to bring the organizations success a reality. These according to the research findings are; total cost reduction, increase in daily sales and sales turnover, reduced waste, customer satisfaction and profit levels. Stock Management has got a big impact on the success of an organization. Therefore organizations need to put enough emphasis on the stores department


The research forwards some recommendations such as;

Costs: Management needs to be aware that there are a number of costs directly or indirectly attributed to stock. These costs range from acquisition, storage and disposal costs. These costs need to be eliminated to absolute minimum.

Monitoring and evaluation; Precautionary measures therefore need to be put in place to guard against certain occurrences such as fire and theft. The researcher also put forward areas for further research and these are;

1.      Procurement and materials acquisition and organizational efficiency

2.      the relationship between stores department and other departments

Buyer supplier relationship and operational efficiency

CHAPTER ONE
1.0 INTRODUCTION

This chapter covers the background of the study, statement of the problem, objectives of the study, the scope of the study, significance of the study and the operational definition of terms.

1.1 BACKGROUND TO THE STUDY
Many organizations in Uganda that do not have proper stock management systems in their operations face a lot of challenges most of which include dependency on the efficiency of the supplier, missed sales incase of stock outs, high costs of obtaining materials and poor customer service. However, organizations have recently found it as having a great impact on the success of the organizations (Frazelle, 2002; Jessop, 1986). Good stock management by a firm will lower costs, improve efficiency and ensure production while at the same time meet fluctuations in customer demand. It will give the firm a competitive advantage as more efficient production can feed through to lower prices and also customers are always satisfied as products will be available on demand.

Stock management has been defined by different scholars but all drive to the same meaning. The international dictionary of management (1995) defines stock management as the use of management techniques designed to determine and implement the holding of optimum levels of stock, whether raw materials stocks, bought out goods, work in progress, or finished goods. Stock availability is the most important aspect of customer service. The goal of stock management is therefore to increase financial returns on inventory while simultaneously increasing customer service levels (Frazelle, 2002).

Stock management directly affects both the value of the assets used in a business and the quality of services given to customers. Firms should therefore focus on just a few core activities which of course include stock management in order to maintain a long term competitive advantage. Using this approach which has been refined, companies have tried to focus on their stock and have set a stage for wide spread acceptance of advantages of stock management....

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Item Type: Project Material  |  Attribute: 47 pages  |  Chapters: 1-5
Format: MS Word  |  Price: N3,000  |  Delivery: Within 30Mins.
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