THE IMPACT OF INFORMATION TECHNOLOGY ON INVENTORY CONTROL IN THE OIL AND GAS SECTOR OF NIGERIA

BACKGROUND OF STUDY
The American institutes of accountants defines the term inventory as “the aggregate of these items of tangibles properties which are held on sales in the ordinary course of business, are in process of production for such sale or one to be currently consumed in the production of goods or services to be available for sale”. Advanced accounts.

Inventories are the significant portion of most forms of assets which accordingly requires substantial investment in order to keep these inventories from becoming unnecessarily large, inventories must be managed efficiently. In efficient procedures regarding inventory and some   items of stocks, other overstock, necessitate excessive investment. Inefficiencies ultimately will have an adverse effect upon profits, thus the effect of   inventory control in flexibility and level of investment required in categories represent two sides of the same coin. These are various principles of inventory control which will be viewed from the content of a profit oriented organization form which a base can be formed for the title of the project.
In the modern business worlds, greater importances have been put to the control of inventory. Its concern in the management of inventory control must be to provide right goods in right condition at the right time. It implies that, the control procedure should be able to;

  1. retain appropriate stock levels
  2. Ensure proper use of stock in business operation.
  3. Ensure the inventory is duly accounted for.
  4. Safe guarding of stock against loss or misuse the management needs to ensure that adequate control procedures for purchasing and controlling of inventory in a way that optimum balance is obtained between efficient control and economy.

STATEMENT OF THE PROBLEM
Using information technology in inventory control is one of the most recent aspects of the modern business method. A lot of establishments engage diverse strategies to achieve accountability goal. The control problem of inventory control as it store and proper recondition of possible loss to a business through interruption of production or failure to meet other with the holding cost of stock large enough to give security against loss.