Current Office Supplies Inventory Management Practices of Various Offices in Holy Name University and It's Advantages and Disadvantages

Topics: FIFO and LIFO accounting, Inventory, Procurement Pages: 6 (1801 words) Published: February 17, 2011




Zipkin (2000), states that every one of us deals with dozens of inventories daily without thinking too hard about them. At home, we stock supplies of foods, drinks, soap, and many other items, because they make life easier than it would be otherwise. During times of calamities when there is no electricity and gas for cooking, one's stock of canned goods and other ready to eat foods are of great help. Olivario (1998) said that an adequately stocked workstation is essential to someone’s productivity. If someone runs out of supplies in the middle of critical task, one could lose valuable work time by stopping to replenish needed supplies. Also one runs the risk of not completing the task on time. Inventories include office supplies which is the generic terms that refers to all supplies regularly used in offices by business and other organizations who work with the collection, refinement, and output of information (colloquially referred to as "paper work"). Office supplies cost businesses a considerable amount of money every year. Most of these costs cannot be avoided but with some attention and by doing some planning beforehand, a large chunk of these costs can be easily cut.

In businesses, office supplies make the employee effective in doing his job. Of course with the aid of technology such as computers, fax machines, photocopiers, and other gadgets, employees are too dependent on the use of office supplies. Resourcefulness is crucial in any business since most companies nowadays are in financial hardships. So if companies are used to of laying-off employees, there is also a need to extend cost cutting and budgeting in using office supplies. This does not only make one resourceful but also save the company from total financial trouble.

So if employees wish to do their part in reducing expenses, they can do it in their own little ways such as wisely using office supplies. The above mentioned realities prompt the researchers to assess the effectiveness of office supplies inventory management practices of Holy Name University.

Theoretical Background of the Study
Effective materials management is essential for providing the best service to customers, for producing efficiently, and for controlling the investment in inventories. Successful materials management requires the development of a system involving sales forecasting, purchasing, receiving, storage, production, and shipping.

In large organizations, purchases of materials usually are made by the purchasing department, headed by a general purchasing agent. In smaller companies on the other hand, department heads or supervisors have authority to purchase materials as needed. The procurement and use of materials usually involve the following steps: 1) establishing the bill of materials 2) preparing production budget 3) purchase requisition 4)prepares purchase order 5) make receiving report 6) make materials requisition 7) recording receipt and issuance of materials in materials record cards. The principal forms required in purchasing are the purchase requisition and the purchase order.

By the time the materials reach the receiving department, the company usually receives an invoice from the vendor. The invoice and the copy of the purchase order are filed in the accounting department. Invoice approval is important in materials control because it verifies that the goods have been received as ordered and that payment can be made. If the invoice is correct, the invoice clerk approves it and attaches it to the purchase order and receiving report for preparation of a voucher. Voucher data are journalized, posted to the subsidiary records, and entered in the cash payments journal.Materials and a copy of the receiving report are forwarded to the storeroom from the receiving or inspection department. Admittance to the storeroom usually is tightly restricted, with materials being issued through cage...
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