Inventory and Waste Management System For A Gas Retail Fueling Station
A thesis proposal submitted to the
College of Accountancy
In partial fulfillment for the requirement
of the course in Internship/Accounting Thesis
Any stock that a firm keeps to meet its future requirement of production and sales is called “INVENTORY”. The basic reason for holding inventory is to keep up to the production activities unhampered. It is neither physically possible nor economically justifiable to wait for the stock to arrive at the time when they are actually required. Therefore, keeping of inventory is a must for the efficient working of a business unit. Finished goods are completed goods awaiting sale in a manufacturing concern; they are the final output of the production process. The nature of inventory depends upon the type of activity carried on. In the case of a trading concern, it will comprise only finished goods or stock-in-trade owned by it for sale to customers in the normal course of business. Inventory needs proper control as it is one of the largest assets of a business. Inventories should neither be excessive nor inadequate. If inventories are kept at a high level, higher interest and storage costs would be incurred; on the other hand, a low level of inventories may result in frequent interruption in the production schedule resulting in under utilization of capacity and lower sales.
Some businesses have another concern for their inventory. Spoilage, evaporation and other kind of inventory losses are incurred depending on the type of products offered. All businesses strived to prevent these losses but are also prepared to account for them. They have established procedures and standards to accurately determine and measure the appropriate amount of losses incurred. These losses are considered as waste. Proper measurement of inventory, especially those that have the tendency for normal loss, is vital to a good inventory management. Inventory management consists of everything from accurate record-keeping to shipping and receiving of products on time. An Inventory management that is properly maintained can keep a company’s supply chain running smoothly and efficiently. The objective of inventory management is therefore to determine and maintain the optimum level of investment in inventories which help in achieving the required objective. The focus of this study is to enhance the current system and practices on inventory management and the procedures used in dealing with losses by a Gasoline Retailing Station located in Km. 53, National Highway, Brgy. Real, Calamba City, Laguna. The business offers four different kinds of fuels to motorists for thirty years. Statement of the Problem
The study, entitled “Inventory and Waste Management in a Gas Retailing Station” is intended to develop and enhance the inventory and waste management system. The objective may be achieved by evaluating the internal control practices applied in the company particularly on current assets specifically on its inventory management. Further, the study is aimed to answer what development and enhancement the company may be able to adopt.
The study aims to answer the following questions:
1) What are the current system and control measures being adopted with regard to their inventory system? 2) What standards and practices does the company apply with their waste management system? 3) What are the strengths and weaknesses of their current inventory system and waste management practices? 4) What improvements can be made regarding the inventory and waste management system? 5) What enhancements can be adopted to improve the inventory and waste management system of the company? Objectives of the Study
The main goal of the study is to evaluate the current inventory and waste management system of the company. Thus, the study shall be conducted to come up with an enhancement and development in the inventory management...
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