2. NATURE OF STORES
Store as building where inventories are kept
Function of receiving, storing, and issuing materials
IMPORTANCE:
Ready accessibility
Efficient space utilization
Flexibility of arrangement
Reduces need for material handling equipment
Minimizes the material deterioration
Easy of physical counting
2created by K.G.Latshumi,M.B.A, VEC, Chennai
3. FUNCTIONS
To receive raw materials and account for them
To provide adequate storage and preservation
To meet timely demand of the consuming departments
To minimize obsolescence, surplus and scrap through
proper codification, preservation and minimization
To highlight on stock accumulation, discrepancies, and
abnormal consumption and to take corrective actions
To ensure good house keeping
To provide information to the purchasing department
3created by K.G.Latshumi,M.B.A, VEC, Chennai
6. Can be based on the following
suppliers- supplier A & B
similarity of items- Coal and other fuel
joint issues of item- oil and petrol
size and frequency of use
Random Location:
Items will be stored in any storage position which is
available
zoned Location:
Goods of a particular product group are kept in a given area
May be randomly stored in a zoned location
or stored according to the fixed position
Fixed location:
Goods of a particular type have position in the store
assigned to them particularly
6created by K.G.Latshumi,M.B.A, VEC, Chennai
9. Stock verification types
Periodic or fixed annual inventory
Continues or perpetual inventory
Low point inventory
Classification and codification:
stores can be grouped in to 12 groups on the basis of their nature and
usage.
1. Raw materials 7. components
2. Consumable stores 8. Spare parts
3. Tools 9. Packing material
4. work-in-progress 10. Finished goods
5. Hardware 11. Motors
6. Gear box 12. CKD-completely
knocked down item
9created by K.G.Latshumi,M.B.A, VEC, Chennai
