CHAPTER ONE

1.0 INTRODUCTION

This chapter takes into consideration the background of the study statement of the

problem. Objective of the study, significance of the study, limitation of the study,

Delimitation of the study and the organization of the study

1.1 BACKGROUND OF THE STUDY

Stock forms an important component of an organization’s assets and must be well

managed or controlled and companies must keep continuous flow of equipment and

needed material for their service at any point in time. Heavy investment are made into

assets for which when there are shortage result in a holding up in the service rendering

process which is very costly/holding excess stock will also result in a large capital tied up

and increase the cost of storage and obsolescence, companies must know the minimum

and maximum level to keep stocks.

The Administrator is responsible for the companies stocks and cannot do away with

problems associated with stock management in terms of the items utilization, that is their

effectively and efficiency utilization and control. It is in this regard that the writer chose

the topic “stock management in companies” case study being Ghana Water Company.

Takoradi

1
Ghana Water Company is an establishment mandate to offer dean water to the country as

a whole. The Takoradi branch is located beside STC on the “Cocope” road. The branch

is known as Regional head because the store supplies the whole western region.

The store of the company is divided into five sections; they are fuel and lubricant, new

service connection store, general goods, chemicals and stationary. At present the stores

department of the company is managed by one person with two staff assistance in

running of the store. The stores serve people in Takoradi and its surroundings.

1.2 STATEMENT OF THE PROBLEM

The company in general is faced with problems of inadequate storage facilities for

keeping equipment and materials and week supply chain for material and equipment.

The reason for this situation seems to be directly associated with leek of sand stock

management policy.

For this reason, the study seeks to find out the effect of weak stock management of the

operations of Ghana water company Takoradi.

1.3 OBJECTIVES OF THE STUDY

The objective of the study includes the following

• To ensure that unnecessary large capital is not tied up in large stock

• To ensure that sufficient material is in stock to meet normal usage requirement.

• To minimize material wastage due to deterioration, out dated materials and

pilferage.

2
 • To determine the order quantity that minimizes the cost of holding stock.

• To purchase materials at the most favorable prices taken into consideration

material quality

1.4 SIGNIFICANCE OF THE STUDY

The research is considered significant because stock is undoubtedly an issue of greater

importance to management in running of a company. It will assist policy makers in their

ability to deal with stock management and also aid in the formulation of effective stock

policies. The findings of the study will be a source of information to those who like to do

further study in this area.

1.5 LIMITATION OF THE STUDY

• The researcher encountered many constraint in carrying out the research work

• The research has been restricted to only the company stores due to the fact that

there was limited time.

• Needed information was made available with much difficulty since stock

management staffs wore to always at their offices due to the nature of their work.

• The study was done in conjunction with active academic work.

1.6 DELIMITATION OF THE STUDY

The writer is allowed to focus on only one case study that is Ghana water company

Takoradi in order to get precise information for the writing of the project.

3
1.7 ORGANISATION OF THE STUDY

To ensure sequential and logical flow of ideas, the study has been organized into five

chapters.

Chapter one consists of the introduction chapter is made up of the background of the

study, significance of the study and the limitation of the study.

Chapter two focuses on the literature review; this gives a theoretical frame work of the

study area (stock management)

Chapter three is the methodology

Chapter four is devoted to the research

Chapter five summaries the findings of the research, also focuses on the conclusion down

and recommendation mode.

4
 CHAPTER TWO

LITERATURE REVIEW

2.0 OVERVIEW

This chapter talks about what other authors have written about the Topic – stock

management.

Stock management defined

Stock management can be described as the planning and controlling of a firm in bound

materials (manufacturing suppliers and finished good) such planning and controlling

often extend to the production process.

Donnelly, Gibson and Anvancevieh (1997) described stock management as securing and

maintain the optional qualities and types physical resource required by the organization

strategic plan. They brought out four (4) essential features:

• A sound material quantity ordered, order dates and the reader dates in

coordination with charges in speafication due to product a production changes.

• A commitment to executing the plan required, adherence to the specified order

dates and the lead time

• Constant evaluation to reduce stock level

• Inexistence a maintaining accurate record of stock level.

5
 Lyson (1994) is of the opinion that, stock is an accounting term for the value or

quantity of raw material, components, work-in-progress and finished product that are

kept and stored for use as the need crises, it also applied to

A detailed list of good

An inventory taking

Stock control management thus according to him refers to the techniques used to

ensure that goods of raw materials and other supplies, working progress and finished

good are kept level to ensure that maximum service level are maintained at minimum

cost.

According to Lucy (2003) stock control or management is defined as the system used

in a firm to control the firm investment in stock. This includes:

• The recording and monitoring of stock level.

• Forecasting future demand and

• Deciding when and how many to order.

2.2 FORMS OF STOCK

According to Lucy (2003) stock may be classified by its forms as follows:

a. RAW MATERIALS

These are materials purchased for the production of other product.

b. WORK-IN-PROGRESS

These are also known as partly finished goods and materials sub assembles etc. held

between manufacturing stages.

6
c. FINISHED GOODS.

These are completed products ready for sale or distribution. They are stocks of goods

which have passed through the production process awaiting supply to customers.

2.3 REEASONS FOR HOLDING STOCK

According to Lucy (2003) reasons for holding stocks can be summarized s follows:

a. to ensure that sufficient goods are available to meet anticipated demand.

b. To absorb variations in demand and production.

c. To talk advantage of bulk purchasing discounts.

d. To enable production processes to flow smoothly and efficiently

e. to deliberate investment policy particular in times of inflation a possible shortage.

f. to meet possible shortage in the future.

2.3.1 ALTERNATIVES REASONS FOR STOCK

i Obsolete item are retained in stock

ii inadequate or non-existence stock control

iii poor decision between the production control, purchasing and market control

2.4 OBJECTIVES OF STOCK MANAGEMENT

Stocks of material are recognized as vital ingredients to the smooth functioning of on

organization. In line with this, stock management plays a crucial role in the operations of

organization, without good measures, the operations of an organization would be

interrupted due to lack of materials, late delivery due to wrong anticipation and

inadequate of funs due to capital tied up to stock.

7
According to Heward (1994) stock management has the following objectives

a. to purchase the right quality of material stock.

Every organization seeks to acquire the right quality of material for production usage or

activities. When this is due, the organization that will be economical to the organization.

b. To purchase the right quality

This is sometime referred to as economic order quantity. This means that the organization

has to order for stock or at a quantity that will be economical to the organization.

c. To purchase from the right source:

The objective has to do with the identification of suppliers, assessing and choosing who

to purchase from among the lot. The selected supplier is seen as the one whom when we

purchase from low minimize cost and impose production.

d. To purchase at the right time

This is also called just-in-time purchase. Its also means that the firm must time the

purchasing so that adequate stock for production purpose would be available whiles not

storing large quantities to increase cost through storage warehousing.

2.5 STOCK CONTROL SYSTEMS

This is the process of counting the stocks in the store to ensure that they are properly kept

and not misused by those in charge.

There are two main approaches to the task of stock control system.

8
a. Reorder level systems

This is also known as the two bin system. This determines the level at which the order

should be placed to obtain additional stock. Reorder level is the number of days, week

lead time multiplied by the daily 1 weakly usage during the period.

For material, components and suppliers the reorder level is the lead in time when the

purchase requisition is initiated and the order is sent to the supplier its characteristics are

as follows:

a. A predetermined re-order level is set for each item.

b. When the stock level falls to the re-order level, replenishment order is issued.

c. Most organizations operating the reorder level system maintain stock records with

calculated re-order levels whish trigger off the required replenishment order.

d. the name “two bin” system comes from the simplest method of operating the system,

whereby the stock is segregated into two bins stock is initially drawn the first bin a

replenishment order issued when become empty.

A simple manual reorder system illustration

The following gets relate to a particular stock item.

Normal usage 110 per day

Minimum usage 50 per day

Maximum usage 140 per day

Lead time 05 – 30 days.

9
Economic order quantity 5000.

Using this data the various control levels can be calculated.

a. Reorder level = maximum Usage X maximum lead time

= 140 X 30

= 4200 unit.

b. minimum level = Reorder level – Average Usage for Average lead time

= 4200 – (110 X 27.5)

= 1, 175 unit.

c. Maximum level = Reorder level + EOQ – Minimum Anticipated Usage in lead time.

= 4200 + 5000 – (50 X 52)

= 7950 units.

b. Periodic level system

The objective of periodic level system is to find out the physical quantities of material of

all types (raw materials, work-in-progress finished goods etc) at a given date. This is

substantial task even in a modest organization and becomes a difficult if not impossible

task in a large organization.

The following factors need to be considered during periodic stock level system

i. adequate number of staff should be available, who receive clear and precise instructions

on the procedures.

10
b. the stock take should be organized into clearly defined physical areas and the checkers

should count or estimate all material in the area.

c. Ideally the stock take should be done at a weekend or overnight so-s not to interfere

with production.

d. the completed stock sheets should have random independent check to verify their

correctness.

Periodic review system also has the following characteristic.

a. Stock level for all parts is reviewed at fixed intervals e.g. every fortnight.

b. where necessary a replenishment order is issued.

c. the replenishment order quantity, variable quantities at fixed interval as compared with

the reorder level system, that is where fixed quantity are ordered at variable material.

2.6 COST OF STOCK

Stock represents an investment by the organization. As with any other investment, the

cost of holding stock must be related to the benefits to be again

To do this effectively the cost must be identified even through it can be actual or

motional cost to the company. Sometimes these costs are hard to identify, called and

measure.

T Lucy (2003) comes out with following cost associated with stock.

a. Cost of holding stock:

These costs also known as carrying cost. They are the cost associated with having as

opposed to hot having stock and these include the following.

a. interest on capital invested in the stock

11
b. Handling costs

c. Storage charges (Rents, Heating etc)

d. Audit stock taking cost

e. Insurance and security, pilferage, deterioration obsolescence etc.

b. Cost of obtaining stock

These are the cost incurred by the company when they want to obtain stock. These

include:

a. The clerical admistractive cost associated with the purchasing accounting and goods

received department.

b. Transportation cost.

c. where goods are manufactured internally, the set up and tooling cost associated with

each production run.

c. Stock out stock.

These are the cost associated with running out of stock. The avoidance of these costs is

the basic reason why stocks are held in the first instance. These costs include the

following:

• Lost contribution through the lost sale caused by the sold-out

• Loss of future sales because the customer go else where.

• Loss of customer goodwill

• Cost of production stoppage caused stock out of WIP or raw materials.

• Labour frustration our stoppages.

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2.7 THE STOCK CYCLE AND ITS MANAGEMENT PROCEDURES

According to Drury (1997), the major objective of stock control is to establish and

maintain the option level of investment in all types of stock. The stages are

a. Purchasing

When stocks get to the reorder level, the stock department prepares a purchase requisition

by the needy department.

The purchasing department will select on appropriate supplier based on expert knowledge

as a set of purchase order is prepared. A copy of the purchase order is sent to the

receiving section for checking when the good arrive.

b. Receiving

Receiving of an order is done by the stock department in many organizations. The stock

department on avoid of the good will deal the delivery vote to find out if the items

received are in line with what was ordered for on the purchasing order received from the

purchasing department.

The store keeper then enters details on the delivery note to the receipt side of the bin card

when satisfied with the items delivered. Copies of the goods received note are passed to

the purchasing and accounting department for record purpose.

At the store department, the store manager opens store ledger account and record the

good received at their respective column.

2.8 ISSUING

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Issuing of stock, the department in need, prepares a requisition note giving out the

quantity needed and all relevant details on the requisition form to the store department. A

requisition must be signed by the head of the needy department. The store manager then

enters the details on the requisition note onto the store ledger account of the item needed

column before forwarding a copy of this requisition note to the account department for

recording, after this, the physical transfer of the items needed is done.

2.9 PROBLEMS OF NOT KEEPING PROPER STOCK MANAGEMENT

According to palmer on at Brock (1984) if effective management policy is not kept in an

organization, human factor problems like pilfering, overstocking of irregular materials

like stationeries in the organization will be the order of the day. They did not leave out

the following consequence

a. Loss of contribution arising from cost sales

b. Cost of interrupted production that is production stopping

In the opinion of Leennders and Fearson (1993), there are seven keys to effective stock

management and these are.

a Effective sales management- this is vital in setting appropriate stock management

b. Staff training of staff in basic stock management as well as the organization’s specific

inventory system procedures and objectives.

Realistic turnover objectives set budgets from the button up based on the projected

turnover of each stock item.

d. An understanding of inventory carrying cost. Identifying all financial and operating

cost. Fixed and variable cost when determining of final stock levels

14
e. Timely and accurate information system management should be armed with updated

figures demand sales levels, service performance and reorder quantities.

f.. High customer standard making sure that there is adequate stock on hand to meet

customer need.

g. Close relationship with suppliers without reliable suppliers, you cannot meet your

customers need.

2.9 STOCK VALUATION

These are the pricing systems used by companies in pricing their stock material according

to T Lucy (2003), the major pricing systems.

FIFO – First in first out

LIFO – Last in first out

Average price

Standard price

FIFO

Issued are priced of the oldest botch in stock until all units have issued when the next

oldest batch used it is on actual cost system which has the effect of charging the oldest

prices to production and valuing stocks at the more recent it is also recommended by

SSAP

15
LIFO

Issued are priced at the price of the most recent until a new batch it is on actual cost

system which cause products cost to be based fairly closely on current prices and stocks

to be valued at the oldest prices

c. Average price

This is a perpetual weighted average system roles the issue price is calculated after each

receipt. This system has on effects on product costs and stock valuation some where

between LIFO and FIFO. This system makes cost comparison between jobs some what

easier and is simple to administer.

d. Standard price

This is a predetermined price based on consideration of all factors which are expected to

affect the price. If a realistic price can be set then purchasing efficiency can be

monitored to some extent.

3.0 IMPORTANT TERMINOLOGIES IN THE STUDY OF STOCK

MANAGEMENT

A. Re- order level.

This is the level of stock at which on order be placed for additional suppliers of material

in order to achieve delivery at the time of minimum stock level.

This is also calculated so that if the worst anticipated circumstances occur, stock would

be replenished in time.

16
B. Minimum Stock Level.

This is the lowest point to which stock should fall. This level is also determined by

considering the demand of stock and the time it takes for new orders to be processed and

delivered.

The level is also calculated by management so that they will be warned when demand is

above average and accordingly buffer stock in being used.

C. Maximum Stock Level.

Heward (1994) defined maximum stock level is the greatest quantity of stock that should

be in store et any point in time.

This means that maximum stock level is the ceiling above which further addition of stock

is discourage. It is also arrived et by considering the level of usage of stock and the time

at task for new orders t be developed.

This level is calculated so that manners would be warned when demand is the maximum

antiapated and consequently the stock level is likely to arise above the maximum

intended.

D. Economic Order Quantity

Kinney, Prather and Raibon (2004) explained economic order quantity as a production

run model that indicates how many units to order or purchase.

This also means that economic order quantity is the quantity of material or stock which

should be purchased when the re-order level is coached end this could be economical to

the firm interns of ordering, carrying and storing

Store ledger account

17
According to chakraverty (2004) a store ledger is a collection of cards or on account

meant for keeping records of both quantities and value of materials received, issued and

these in stock.

F. Bin Card.

Murao (1996) defined a bin card containing information or materials received and issued

and show the balance of stock at any point in time.

It must be noted that id does not show the value or price unit of the commodities

purchased or issued.

G. Lead Times.

Lysons (1994) defined lead time as the period taken to obtain a requirement of stock from

the time the head arises to its fulfillment it takes into accounts.

Preparation and forwarding of requisition from the store department to the purchase

department. Processing and transmission of the order to suppliers

Execution of the orders by suppliers.

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 CHAPTER THREE

RESEARCH METHODOLOGY

3.0 OVERVIEW

This chapter describes how the problem of the study was investigated and the procedures

and method used in conducting the research and how the information gathered were

analyzed.

It deals with population and sample, sampling Techniques, data collection instruments

and method of data analyses and presentation.

3.1 POPULATION AND SAMPLING

The study focus on the staff of Ghana water company Takoradi. The populations of the

study consist of all employees in the state apartment. The population of the store

department of the company is about five (5) employees, out of this a sample of

employees were selected and given questionnaire. These samples consist of the regional

material manager, the store manager and two store clerks.

3.2SAMPLING TECHNIQUE

In order that information is obtained for the research work, the researcher used purposive

sampling technique for the sample made from the total population.

The purposive sampling was used because the respondents are those responsible for the

store of the company.

19
DATA COLLECTION INSTRUCTIONS

A well structured questionnaire was given out to solicit the opinion of the regional

material manager, store manager and the material of Ghana water company Takoradi

The questionnaires were self designed and set out personally by the researcher to the

personnel in the store department of the organization.

The respondents were also interviewed personally in conjunction with the questionnaire

they were served with.

The questionnaire contained both open and closed questions which gave the respondent

room to express their view and to provide specific answers to the questions asked in the

questionnaire.

3.4 METHOD OF DATA ANALYSIS AND PRESENTATION

Data obtained from the study were coded and put into categories. The data was therefore

analyses using the information thus obtained from the data collected.

Some quantitative tools such as percentages and graphs were used in the analysis.

20
 CHAPTER FOUR

FINDINGS PRESENTATION AND DISCUSSION OF RESULT ANALYSIS OF

DATA

4.0 OVERVIEW

The objective of this chapter is analysis the data collected. The analysis is done under two

broad sections.

The first to deals with the data which seeks to find whether the respondents were aware

of the policy on material management in the organization.

The second section reemphasis on the awareness created by the organization with regards

to the application of the appropriate procedure governing material management in the

organization.

The respondents were required to indicate the awareness of the policy on material

management in the organization by tacking “Yes” No” on the questionnaire given to

them

21
 TABLE (4A) POLICY ON MATERAIL MANAGEMENT

Groups No No of responding Yes % in groups No of %in group

respondent Responding

No
Regional M.

Manager 1 1 100 _ _

Store Manager 1 1 100 _ _

Clerks 2 2 100 _ _
Total 4 4 - - -

From the above table (4a) it could be deduced at the respondents that is the required

material manger, the store manger and the clerk have an idea.

Table (4b)

Summary of information regarding the awareness of respondents on procedure

concerning materials management in the organization.

Group No of No of responding % Group No of % in Group

respondent “Yes” responding

“No”
Regional M.

22
Manager 1 1 100 _ _

Store 1 1 100 _ _

Manager

Clerks 2 2 100 - -
Total 4 4 _ _ _

From the table (4b) it is shown that the Regional material manager indicated that he know

of the procedure concerning material manager of the organization. The high awareness

rate of the Regional material manager gives clear indication that the policy was widely

adopted in principles in the organization. Also that the procedure are clear and was

understood by the Regional material manager.

However, concerning the stock manager, he also know of the procedure concerning

material management of the organization.

The rate of awareness of the clerk was as a result of proper communication system in the

organization set up. This can help management effort to achieve the objectives of the

policy. Base on the analysis it has been made clear to the researcher that, where as both

Regional material manger and the clerk full knowledge is the procedure on material

management policy existing in the organization.

4.1 APPLICATION OF THE POLICY AND ASSESSMENT

Respondent views were sort to ascertain whether store procedures are being observed.

Summary information on adherence to the procedure on material management policy in

the organization

(4c)

23
Group No of No of % of group No of % in group

respondent responding responding

“Yes” “No”
R. M manager 1 1 100 _ _

Store manager 1 1 100 _ _

Clerk 2 2 100 - -
Total 4 4 _ _ _

From the table (4c) above shows that the one representing 100% of the respondent

interviews the regional material manager was of the view that the employees of the

organization are applying the procedure under material management policy in the

organization

Also both the managers and the two clerks were also interviewed and they was the view

that the employers did apply the proceeding governing material management policy in the

organization

Also to them management is doing well to make the system work in the organization.

4.2 MATERIAL SHORTAGE

The respondent were also ask to select “Yes” or” No” if they do experience material

shortage.

(4b)

24
Group No of No of % of group No of % in group

respondent responding responding

“Yes” “No”
R. M manager 1 1 _ _

Store manager 1 _ 1 1 100

Clerk 2 1 50 1 50
Total 4 2 2 _

From the table the Regional material manager is of the opinion that the compare

exerptrience material shortage due to the following causes Arithmetic errors and observe.

The store manager was also of the view that the company does not experience material

shortage and also one of the clerks representing 50% also supported the store manager on

his view.

The one of the clerk representing be other 50% of them said they experience material due

to the following causes delaying in posting and issuing in advance with requisition

The researcher was made aware that management is working hard to stop the shortage of

materials since it affect their jobs at various site for the production of clear certain areas

of the country.

Respondents well also asked to indicate the number of times the organization conduct

stock taking.

4(b)

Group No q No q % in

Respondents responding “Yes” Group

25
Group No of Once yearly Twice yearly More than Twice More

respondent once yearly% than

once %
R. M 1 1 - 100 _ _

manager
_
Store 1 1 - 1000 _ _

manager
_
Clerk 2 2 - 100 - _
Total 4 4 _ _ _ _

As shown in the above four representing 100% of the responses riieved form the

respondents were on the view that stocks are conducted once yearly. The four (4)

respondents comprises of the Regional material manager the store manager and two

clerks of the department.

One of the facts which come to light was that he stock taking was always conducted by

the stock taking Team which comprises of the material Department Account Department

and the Audit department of the organization

26
4.3 MATERIAL MANAGEMENT POLICY AND ITS ASSESSMENT

According to the materials clerks before materials are ordered. The regional material

manager and other regional heads of other department have to approve and even make

sure that supplier particulars are recorded in the supplies register.

However, 25% of the respondents that is 1(one) out of (4) four interview

However, 25% of the respondents that is 1(one) out of (4) four interviewed personally by

the researcher in the organization clearly mentioned that the organization clearly

maintained that the organization does not have contact suppliers but have continues

negotiation with unspecified suppliers.

Finally questions were also asked about “Requisition” within he organization before

materials are issued out. 25% representing I out of four (4) said even though such

procedure is in place, it has not been effective.

An indication was evident that, there was situation where people come for materials

without following his appropriate procedure.

This normally sea within the organization due to emergency of certain materials needed

by the production team but a much more procedure has to be adopted by the

organization to the cater for this since issuing in advance without requisition is one of

the point leading to shortages.

27
 CHAPTER FIVE

SUMMARY, CONCLUSION AND RECOMMENDATION

5.0 OVERVIEW

This chapter is the summary of the research work. It covers the summary of findings,

conclusions drawn form the research work and recommendations made there on based on

the study.

5.1 SUMMARY OF FINDINGS

The followings is a summary of the findings of the research work

i) All staff of the organization are aware of the material; management policy of

the organization

ii) Stock taking is conducted once a year and this is undertaken by the stock

taking team drawn form the account department, Audit Department and

Purchasing Department.

iii) In times of emergency, the materials are issued without requisition.

iv) Principle of materials management are not adhered to revealing a picture of

lock of education on the principles

v) Purchase of materials ids made based on contract with suppliers or by using

the tendering process.

28
 vi) Most shortage is caused by not issuing a regulation note before materials are

issued out.

5.2 CONCLUSION

The following conclusion can be drawn based on the findings.

i) There is no effective stock control system

ii) The knowledge of staff on purchasing and material management is inadequate

iii) Training provided to staff seems not too violent to material management.

5.3 RECOMMENDATION

Based on the outcome of the research the following recommendation are out forward

i) There should be written document out lining the specific principles for material

management in the organization.

ii) Training should be organized for the entire staff to update their knowledge on material

procedures.

iii) Management identifying their minimum levels stock will help avoid shortage

iv) Procedure should be put in place to cater for emergencies regarding the issuing of

requisition

29
30
REFERENCE

Lucy T (2003) Management Accounting 5th Edition ELST imprints

Lysons CK (1996) Purchasing, 4th Edition Financial Times management

Leander Mr. and Foarson HE (1993) Purchasing and material management 10th Edition.

Home wood publications

Heward T.L (1994) Procurement principles and cases, Richard D. Irvin IAC

Drury C (1997), costing, an introduction, 3rd Edition international Thomson Publishing

Limited

Kinney R. M, Pratler – Kingleys J, Raiborn AC (2003) Cast Accounting, South – West

College Publications Limited

Murao B (1996), Cost Accounting Thurker Spink Limited

Chakraverty E. K (2004) Cost Accounting and Management Accounting, New age

Publishing limited

Palmer and Brock (1984) Costing Accounting, London BPP Publishing Ltd

31
 QUESTIONNAIRE

TAKORADI POLYTECHNIC

STUDENT RESEARCH PROJECT

This questionnaire is drafted to provide for a long essay on the topic “Stock Management

in Ghana Water Company”-Takoradi.

Information provided will be treated confidentially and wholly utilized only for

academic purposes.

Please tick appropriately, response that applies to you.

1. What is your position in the organization?

……………………………………………..

2. Educational Qualification

a) Basic [ ] b) Secondary [ ] c) Diploma [ ] d) Degree [ ]

3. Do you have any idea about material management policy?

4. Does the organization have a purchasing Department?

a) Yes [ ] b) No [ ]

5. How is purchasing mode?

32
a)Contact with Suppliers

b) Continuous negotiation with unspecified supplier

c) Other Specification.

6. Do you fill requisition before materials are release from the store?

a) Yes [ ] b) No [ ]

7. Does the organization have one central store?

a)Yes [ ] b)No [ ]

8. How many does the organization conduct stock taking.

a) Once yearly [ ] b) More than twice a year [ ]

9. Who usually conducts the stocking?

…………………………………………….

10. Does the organization apply the system a stock control?

a)Yes [ ] b) No [ ]

11. Does the organization experience stock shortages.

a) Yes [ ] b) No [ ]

33
12. If Yes what are some the causes.

………………………………..

…………………………………..

……………………………………

…………………………………….

THANKS FOR YOUR CO-OPERATION.

34