Research Paper
DEPATRMENT OF BUSINESS MANAGEMENT
FACULTY OF COMMERCE
NAME GUMINDOGA RUTH D
REG NUMBER R08131N
MODE CDP
SUPERVISOR MR MAFUMBATE
RESEARCH TOPIC
An evaluation of the effectiveness of OK Zimbabwe’s inventory control system.
CHAPTER ONE 1.1 INTRODUCTION This chapter outlines the background to the study undertaken, an outline of the problem statement, and the objectives of the study and research questions. It also looks at the limitations and delimitations as well as the significance of the study on the effectiveness of the inventory control system in improving the performance of an organisation. 1.2BACKGROUND OF THE STUDY
OK Zimbabwe has been in existence since 1942, and has established itself as a customer-oriented retail organisation providing access to a broad range of retail products and allied services developed in response to its customers’ requirements for convenience and value. After the introduction of the Multi-currency system in February 2009, OK Zimbabwe like other companies was left without adequate capital for stocking its stores. This problem was exacerbated by the problem of stock pilferage, which threatens the viability of the organisation. OK Zimbabwe in the past years has put in place internal controls that manage the movement of stocks as they are ordered, received and sold.the following are the inventory control measures that were installed inorder to manage stocks: OK uses points of sale type of control method to order new stock for their organisation which involves updating the inventory each time there is a sale. That is according to business dictionaries the inventory figure is updated as soon as the organisation transfers ownership to the buyer. The organization has also installed a closed-circuit television (CCTV) which is the use of videos for surveillance for the shop areas that monitoring of stocks in the warehouse and shopfloor. OK has also employed security guards as a measure to control stocks in the
FACULTY OF COMMERCE
NAME GUMINDOGA RUTH D
REG NUMBER R08131N
MODE CDP
SUPERVISOR MR MAFUMBATE
RESEARCH TOPIC
An evaluation of the effectiveness of OK Zimbabwe’s inventory control system.
CHAPTER ONE 1.1 INTRODUCTION This chapter outlines the background to the study undertaken, an outline of the problem statement, and the objectives of the study and research questions. It also looks at the limitations and delimitations as well as the significance of the study on the effectiveness of the inventory control system in improving the performance of an organisation. 1.2BACKGROUND OF THE STUDY
OK Zimbabwe has been in existence since 1942, and has established itself as a customer-oriented retail organisation providing access to a broad range of retail products and allied services developed in response to its customers’ requirements for convenience and value. After the introduction of the Multi-currency system in February 2009, OK Zimbabwe like other companies was left without adequate capital for stocking its stores. This problem was exacerbated by the problem of stock pilferage, which threatens the viability of the organisation. OK Zimbabwe in the past years has put in place internal controls that manage the movement of stocks as they are ordered, received and sold.the following are the inventory control measures that were installed inorder to manage stocks: OK uses points of sale type of control method to order new stock for their organisation which involves updating the inventory each time there is a sale. That is according to business dictionaries the inventory figure is updated as soon as the organisation transfers ownership to the buyer. The organization has also installed a closed-circuit television (CCTV) which is the use of videos for surveillance for the shop areas that monitoring of stocks in the warehouse and shopfloor. OK has also employed security guards as a measure to control stocks in the