Lesson Notes By Weeks and Term - Senior Secondary 1

Problems associated with poor inventory control

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TERM – 3RD TERM

WEEK NINE

Class: Senior Secondary School 1

Age: 15 years

Duration: 40 minutes of 5 periods each

Date:

Subject: STORE KEEPING

Topic: PROBLEMS ASSOCIATED WITH POOR INVENTORY CONTROL

SPECIFIC OBJECTIVES: At the end of the lesson, pupils should be able to

I.) Describe the problems associated with poor inventory control

INSTRUCTIONAL TECHNIQUES: Identification, explanation, questions and answers, demonstration, videos from source

INSTRUCTIONAL MATERIALS: Videos, loud speaker, textbook, pictures,

INSTRUCTIONAL PROCEDURES

PERIOD 1-2

PRESENTATION

TEACHER’S ACTIVITY

STUDENT’S

ACTIVITY

STEP 1

INTRODUCTION

The teacher identify and discusses the problems associated with poor inventory control.

Students pay attention and participate                                                                                      

STEP 2

NOTE TAKING

The teacher writes a summarized

note on the board

The students

copy the note in

their books

 

NOTE

PROBLEMS ASSOCIATED WITH POOR INVENTORY CONTROL

Poor inventory control can lead to various problems within a business, including:

  1. Stockouts: Inadequate inventory management can result in stockouts, where products are not available when customers demand them.
  2. Excess Inventory: On the other hand, poor inventory control may lead to overstocking, tying up valuable capital in excess inventory that may become obsolete or expire. .
  3. Increased Holding Costs: Holding excess inventory incurs additional costs, including storage, handling, insurance, and obsolescence. Poor inventory control can lead to higher holding costs, reducing profitability and competitiveness.
  4. Waste and Spoilage: In industries where products have a limited shelf life, poor inventory control can result in waste and spoilage of perishable goods.
  5. Inaccurate Financial Reporting: Incorrect inventory records can lead to inaccuracies in financial reporting, affecting the company's profitability, asset valuation, and financial ratios.
  6. Disrupted Production Schedules: In manufacturing businesses, poor inventory control can disrupt production schedules by causing delays or shortages of raw materials or components.
  7. Increased Order Fulfillment Costs. Inefficient inventory management can result in higher order fulfillment costs, including expedited shipping, rush orders, and overtime labor to meet customer demand.
  8. Poor Customer Service: Stockouts, delays, and inaccuracies in order fulfillment due to poor inventory control can result in poor customer service experiences.
  9. Inventory Shrinkage and Theft: Inaccurate inventory records and lack of control measures can lead to inventory shrinkage due to theft, damage, or administrative errors.
  10. Compliance and Regulatory Risks: Poor inventory control can lead to non-compliance with regulatory requirements, such as safety standards, quality control measures, and inventory accounting practices.

EVALUATION: 1. Identify 5 problem associated with poor inventory control.

  1. Describe the problems mentioned in 1 above

CLASSWORK: As in evaluation

CONCLUSION: The teacher commends the students positively