One of the most cardinal but ambitious maps of companies in this competitory concern environment is non merely to run at a minimal cost but besides to expeditiously and efficaciously pull off its stock of stock lists.
Harmonizing to Baganha and Cohen ( 1998 ) , stock direction includes on one side, stocks direction of stuffs, natural stuffs and intermediate merchandises ( inputs ) and, on the other manus, stocks direction of ware and finished merchandises ( end products ) . The writers argue that from both sides, the purpose buttocks is to buffer against any uncertainness that sometimes exist in the supply concatenation. Further, because it costs concerns to keep stocks, effectual stock direction is of import for a concern in order to equilibrate between economic efficiency and on the other manus avoid productive or commercial choking coil due to unequal stocks.
Since keeping of stocks can be anyplace between 20 to 40 per centum of their value ( Cashon and Fisher, 2000 ) , their efficient direction is critical in supply concatenation operations. It is hence seen as strategic in the sense that top direction sets ends to cover them.
Masters ( 1993 ) stated that inputs stocks direction maps as the supply of natural stuffs and stuffs to production in an economically efficient mode. Outputs stocks direction on the other manus chiefly supply finished merchandise to the clients, without bringing holds and once more in an economically efficient mode.
Lee and Billington ( 1993 ) mentioned that the chief variables to see in stock direction include the costs of each order, spoilage and the storage costs, nest eggs accrued as a consequence of larger measure of acquisitions, the stableness degree of production, the bringing times by the providers, the outlooks on monetary values development of stuffs and natural stuffs and the company ain production policy.
As to the stocks of ware and finished merchandise, the chief variables to take into history are the stableness degree and the beat of orders, spoilage and the storage costs and one time once more production policy ( in the instance that the company produces merely on demand, the demand of stocks is reduced ) . Other activities that can be included in the stocks direction range are the supplies and the purchase operations direction and stuffs and natural stuff orders response every bit good as the despatch of ware and finished merchandises.
Current fabrication paradigm demands high productiveness and the company ‘s ability to react to unstable market scenes. For most of the industries, high competitions both local and planetary have incited them to place ways to optimise the fabrication procedures and construction their ain stock list direction programs consequently. Stock direction is pull offing the parts or stocks of stuffs in any signifier inside the works and stabilising the flow of stuffs sing the variableness in demand. It is really of import that the stock programs are structured in such a manner that they accommodate variableness in demand particularly when the company deals with merchandise of international demand.
Supply concatenation direction involves the direction of the whole procedure of providing natural stuff from the providers to different degrees of clients until the merchandise reaches the terminal user as a finished merchandise. Supply concatenation involves providers, production workss, sweeping traders and supermarkets irrespective of the kind of merchandises being produced.
Most of the researches in supply concatenation countries are concerned with optimising the supply concatenation in footings of its efficiency and competency in the merchandise market, but merely limited surveies are done sing the stock direction in supply ironss. Effective stock direction in a supply concatenation can play a critical function in cutting stock keeping costs across the different phases of the supply concatenation, therefore stressing the demand of a general theoretical account for pull offing stock lists within a supply concatenation.
Therefore, the primary purpose of this research work is to measure the function of stocks in the supply concatenation in the excavation sector in Ghana, utilizing Anglogold Ashanti, Obuasi mine as a instance survey.
In this survey, concentration is chiefly on the function of stock in supply concatenation direction. Anglogold Ashanti, Obuasi mine is chosen as a instance survey for this research work chiefly because as a transnational company where supply concatenation direction is practiced, directors and staff can certify to the huge part of effectual stock direction in the supply concatenation system on the general public presentation of the company if given proper attending.
Good stock list direction, of both natural stuff and finished merchandises plays a important function in the success of any organisation. Many organisations that do non hold effectual control over their stock list tend to over-stock or under stock the goods or points that already exist. Stock out state of affairss tend to present serious jobs to direction because of possible loss of clients, gross revenues and general dissatisfaction of client service.
In an effort to salve stock out state of affairss, most organisations in the gross revenues and service industries tend to maintain excessively much stock list. Such state of affairs pose inventory direction challenges and besides weaken the fiscal place of such organisations particularly in instances where stock lists tend to travel really slow.
Despite the tremendous benefits mining companies can deduce from effectual and efficient stock direction within the supply concatenation, Anglo Gold Ashanti ltd in peculiar sometimes faces the job of holding excessively much stock which can take to high costs or holding excessively small stock which can take to decrease in capacity use and low efficiency. This research work is undertaken mostly to happen out the causes of these jobs and suggest ways by which an effectual direction of stocks in the supply concatenation can better company ‘s public presentation in footings of cost decrease and addition in corporate net income.
The general aim of the survey is to measure the function of stocks in the supply concatenation system of excavation sector, Anglogold Ashanti as a instance survey.
To help in the realisation of the general aim, the following specific aims are developed as follows:
Identify the assorted classs of natural stuffs stock available in Anglogold Ashanti, Obuasi.
Evaluate and assess stock list direction procedure and operation within the Supply Chain for Stock of Anglogold Ashanti, Obuasi.
Estimate how much of Anglogold Ashanti ‘s assets are kept in the signifier of stock and place the factors that drive stocks costs.
Propose steps that can be adopted to better manage stocks in the supply concatenation of Anglogold Ashanti, Obuasi.
The survey aims at replying the following inquiries based on the aims:
What are the chief classs of stocks in the company?
What stock list direction procedure and operation are within the supply concatenation for stock of Anglogold Ashanti, Obuasi?
How much of Anglogold Ashanti ‘s assets are kept in the signifier of stock and place the factors that drive stocks costs?
What better pattern ( s ) can be adopted to pull off natural stuffs stock in Anglogold Ashanti?
Most of the researches in supply concatenation countries are concerned about optimising the supply concatenation in footings of its efficiency and competence in the merchandise market, but merely limited surveies have been done sing the stock list direction in supply ironss. Without any specific attempt to organize the overall supply concatenation system, each organisation in the web has its ain docket and operates independently from the others.
However, such an unmanaged web consequences in inefficiencies. For illustration, a works may hold the end of maximising throughput in order to take down unit costs. If the terminal demand seen by the distribution system does non devour this throughput, there will be an accretion of stock list.
Therefore, effectual stock list direction in a supply concatenation can play a critical function in cutting stock list keeping costs across the different phases of the supply concatenation, therefore stressing the demand of a general theoretical account for pull offing stock lists within a supply concatenation.
This survey will lend to the operations of Anglogold Ashanti ; it will supply the direction with better patterns in managing and pull offing stock of natural stuffs within the compny. From the academic position, this survey will add up to the few existing literature on this subject and therefore function as mention for farther researches. From the economic position, this research will enable Anglogold Ashanti to decently pull off their natural stuffs stock which will take to decrease in waste in the system ; this will in bend cut down cost and better their public presentation in the economic system.
The survey description and analysis is based on several beginnings of information such as assets and fiscal information of the company, intelligence documents, articles, researches and books published in relation to Ashanti Goldfields Company Limited now known as Anglogold Ashanti.
In order to accomplish the research aims of measuring the function of stocks direction in the supply concatenation, much information was collected on the company ‘s assets, its stocks retentions every bit good as general information on challenges the company faces in pull offing its stocks. Both quantitative and qualitative research methods were hence adopted for the survey. While quantitative analysis concentrated on company ‘s assets and stocks, qualitative informations focused on directors and staffs perceptual experiences on the challenges the administration faces in stocks direction.
This research aims at taking an extended appraisal of natural stuffs stocks direction in the supply concatenation in Anglo-Gold Ashanti, as the instance survey. In position of this, all relevant inquiries were directed to assorted directors of different sections of the company for relevant accounts and for proper apprehension.
The survey is divided into five chapters. Chapter one deals with the debut, the statement of the jobs, justification of the survey, aims, methodological analysis, range, every bit good as organisation of the survey
Chapter two provides an overview of bing literature. This chapter provided a reappraisal of already bing literature on this subject and assorted positions and sentiments of research workers on the survey.
Chapter three gives the methodological analysis employed in the research and the profile of the survey country. It besides describes the information that form the footing for the research reported in this paper and provides an overview of the methods or the methodological analysis used in the survey. Again it will cover with the theoretical model and the empirical theoretical account for the survey.
Chapter four reports the consequences of the empirical analysis. That is, trades with the presentation, analysis and treatment of the informations collected from the field.
Chapter five which is the last chapter expression at the sum-up of the findings, decisions, and recommendations in relation to the survey.