United Methodist University (UMU)

Department of procurement and Supply Chain Management

Ashmun Street, Monrovia

Name:

ID
Numbers
Olando Mesah
----------------
ID#:
24394
Saybah Farkollie
----------------
ID#:
17831
Course No: 342 Assignment Zechariah Taloe (Group # III)
Course Title: Strategic ---------------- Inventory Management II
ID#:
21705
Topic: Discuss the important of stocktaking and verification
during warehouse operation Elizabeth L. Marchant
----------------
Explain how disposal procedure should be address in
material handling.
ID#:
23589
Linda Kpadeh
Submitted to: Mr. Samuel M. Nyema
----------------
ID#:
17994
Stephen V. Kollie
----------------
ID#:
Submission Date: December 7, 22141 2019

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Victoria Forkpah
----------------
ID#:
15408
 Dedication
This dissertation or research work is dedicated to our parents and the school; including course

mates and friends whose unyielding love, support, and encouragement have inspired us to pursue

and complete this research work.

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 Acknowledgement
We are grateful to the Almighty God to have immense pleasure in successful completion of this
work title “The Concept of stocktaking material handling system” and export procedure,” the
special environment at sites that always support educational activities, facilitated on work on this
project.
We acknowledge the support, the encouragement, extended for this study by editor (Clarence G.
Mesah, M.Sc. Degree). We greatly appreciate the motivation and understanding extends for the
project work.

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 Introduction
Overview
Material handling is the movement, protection, storage and control of material and product
Throughout manufacturing, warehousing, distribution, consumption and disposal.

As a process, material handling incorporates a wide range of manual, semi-automated and

Automated equipment and system, they support the logistics and make the supply chain works.
Their application work with;

 Forecasting
 Resource allocation
 Flow and process management
 Inventory management and controls
 Customer delivery
 After sales support and service

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 The importance of stocktaking

Proven the advantages which defines the purpose of stocktaking for your business

In general, the key word when understanding and implementing stocktaking or inventory
checking is the word counting. That is essentially the long and short of it: simply put it, is the
process of physical count the actual stock you have on your sites. Apart from your business
address, sites can also include any storage or warehouse facility you may own or are renting, so,
do you really need a blog to tell you that counting the good even through technically you would
already know your stock levels when you order your items/materials parts as you have specified
the quantities order and received.
Well no, but I think you have gathered by now that its little more than that; stocktaking is the
process of counting the actual physical stock and checking the number against the number you
have on your books.
There are many reasons ranging from damage of products in the storage (leakages/damages in
transit) to items returned in unsatisfactory condition for resale and theft of stock that the numbers
in your record may not necessary correct to current actual stock you have on your premises.

Stocktaking Wikipedia
Stocktaking or inventory checking or wall to wall is a physical verification of quantities and
condition of items hold in an inventory or warehouse.

Why is it important to count inventory?

Your inventory is so important because counting your inventory correctly is critical, because its
used to calculate one of the most important financial indication for some types of business cost
of goods sold (COGS). So, you can see that if your inventory count is incorrect, your COGS
won’t be accurate.

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Important Benefits of Stocktaking
 It increases the profit of your business. Stocktaking will help you to increase the
profit of your business by reducing loss and wastage.
 Uncover discrepancies the data you get after the stock take will be the most up to
date data of what you currently have in the storage area.

What is the purpose of stocktaking?

Stocktaking is the process of counting the actual physical stock and checking the number against
the number you have on your books. A stocking will identify any issues that arise in a loss of
stock as well as offer data to conduct you own regular performance analysis so as to maximize
gross profits margins.

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 Procedure for material handling and storage
The purpose of this document is to provide procedure to assist the safe handling of material,
center of gravity should be calculated and lifting point define accordingly.
Guidelines, policy procedure for disposing of scrap valuable waste, and salvageable.
This proper disposition of scrap, valuable waste, and salvageable material will be planned for all.
Construction manager in physical plant facilities planning and construction will address in a
company material handling system and system and processes are put in place to improve
customer of material and products throughout manufacturing, distribution, consumption and
disposal.

Standard for material handling, storage and disposal.

This section sets forth requirement for handling, storage and disposal of material use lagging
(sleeve) when steel is handle by crane or forklift to aid managed by facilities shall be properly
disposed of or prepared for storage and rescue in the proper disposition of scrap, valuable waste
and salvageable material will be planned for all what should your employee know before moving
handling and storing material.

What are the common method of waste disposal?

 Waste management resources
 Methods of dumping off waste
 Landfill; this method buying off the waste and this the most common practices for the
disposal of waste around the globe
 Incineration
 Method for recycling
 Biological reprocessing
 Recovery energy
 Production and avoidance method
 Waste handling and transportation

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Disadvantages of stocktaking
A disadvantage of manual inventory system is that; they can be highly labor-intensive to operate.
They require continues monitoring to ensure that each transaction is accounted for and that
products are maintained at the appropriate stocktaking levels.
The main disadvantages of perpetual inventory systems:
1. Loss of items. Using the perpetual inventory system would ensure fast and easy record
keeping of various items in stock in any organization.
2. Theft; stealing of materials from the warehouse
3. Scanning errors, looking over material in the inventory
4. Improper inventory tracking
5. Hacking

What are the effect of excess inventory?

Common problems in inventory systems, companies with an inaccurate inventory database
causing excessive purchases can result in excess inventory. Business may also purchase excess
inventory to act as protection against stock outs or inadequate inventory to meet customers
demand.
What are the problems of holding stock?
Having too much stock equal extra expense for you as it can lead to a shortfall in your cash flow
and incur excess storage cost.
Having the right stock and being able to sell it can lead to:
 Increased customer’s confidence
 New customers
 Improved cash flow
 New inventory

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 There are six advantages of stocktaking in warehouse operation:

1. Accurate account

Continues stock taking places a lot of emphasis on the maintenance of accurate stock
records. As stated in the above definition, this stock taking involves checking physical
stock with the available records. This means that the preparation of interim and highly
accurate figures. This is especially important considering the fact that this stocktaking
method can be used to specially keep track of high value and fast moving stock item.

2. Prevent unnecessary losses and wastage

Continuous stocktaking can help reduce wastage and loss involving stock items. First and
foremost, by entities and can minimize cases of ending up with obsolete stock items and
the associated losses. Furthermore, tracking stock item on a regular basis works to deter
employee from any cases of dishonest conduct when it comes to handling stock items.
Finally, by maintaining the right level of stock business can eliminate wastage associated
with carrying of excess of stock.

3. Improved stock management

By conducting a regular stock check, business are able to implement and maintain better
stock management practices.
A continuous stock management practices; a continuous stock take goes a long way
towards helping business get a clear idea of the flow of stock items. The lessons learned
here can be applied in the creation of accurate forecast and budgets that reflect the actual
stock movement reality. This can help business avoid cases of running out of important
stock items or having too much capital tied-up in excess stock.

4. In-house experts can be used

This stocktaking method distributes the tedious and often time consuming job of
verifying stock items across the year. This means that business can assign that task to an
internal staffer instead of calling on the team of external expert every now and then.
Similar business can even assign work to one of the existing employee. The assigned
staffers can simply count stock items and enter the information in forms designed for this

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 specific purpose, while the work of comparing actual figures to the existing records is left
to stores clerk.

5. No need to shut down operation

One of the main advantages of continuous stocktaking is the fact that it can be done
without closing the business down. Entities do not have to shut down their operations and
suffer the associated disadvantages to confirm stock numbers. Stock figures are updated
on a regular basis as receipts and issuance continues.

6. Eliminated Delays in production and on delivery:

After businesses identify the trends in stock movement they are able to maintain
sufficient stock levels to meet any fluctuations experienced throughout the year. This
helps minimize the likelihood of production disruption cause by running out of stock
unexpectedly. Most importantly, it ensures that businesses can meet customers’ can meet
customers’ order on time. Every time.

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 Recommendations

We recommend to the material handling organization that, the organization should be

able to provide adequate training to the employees for further consumption on the
material handling application this means that the organization should provide enough
knowledge and skills on how material handling can be

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 Conclusion / Summary
To conclude, an effective and efficient stocktaking process of counting the actual physical stock
and checking the number against the number you have on your books. It used to calculate one of
the most important financial indications for some types of business cost of goods sold to increase
the profit of your business,

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 References
 Ab del=malek and Tang. C. (1994), a heuristic sequencing of task on a drum like storage
and operation research 21(4), 385-396.

 Abdou. G and Lee E ( 1992) Contribution to the development of robostics palletization

of multiple box sizes Journal of manufacturing system 11(3).

 Abodu G. and Yang. M (1994) A systematic approach for the three dimensional
palletization proper journal of production research 32(10), 2381-2394.

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