Archive | Materials Management

Derivation of EOQ Formula | Inventory Control | Materials Management

The most common method to find out how much to order is Economic Order Quantity (EOQ). The economic lot size of an order depends upon two types of costs: i. Inventory carrying costs and ii. Procurement or set up costs. EQO gives the order level where total costs i.e., inventory carrying and procurement costs are […]

Ordering of Materials: 11 Steps | Industries

Steps involved in one Complete purchasing cycle are:- 1. Recognition of Need, Receipt and Analysis of Purchase Requisition. 2. Selection of Possible Potential Sources of Supply. 3. Making Request for Quotation. 4. Receipt and Analysis of Quotations. 5. Selection of Right Source of Supply. 6.  Issuing the Purchase Order. 7. Follow-Up and Expediting the Order […]

Material Handling: Definition, Factors and Factors | Industries

After reading this article you will learn about:- 1. Introduction and Definition of Material Handling 2. Functions and Principles of Material Handling 3. Engineering and Economic Factors 4. Relationship with Plant Layout. Introduction and Definition of Material Handling: Starting from the time, the raw material enters the factory gate and goes out of the factory […]

Material Handling Equipment: Selection and Maintenance

After reading this article you will learn about:- 1. Selection of Material Handling Equipment 2. Maintenance of Material Handling Equipments 3. Characteristics 4. Classification. Selection of Material Handling Equipment: A wide variety of material handling equipment is in the market; some equipment are for general purpose use and others are of special purpose use. The […]

Location and Layout of a Store | Materials Management

After reading this article you will learn about the suitable location and layout of a store. Location of a Store: (a) Centralised Store: In small factories, it is desirable to centralise the materials so that they may be brought under the control of one store-keeper and the store-room should be as far as possible near […]

Ware-Housing: Meaning, Objectives and Functions

After reading this article you will learn about:- 1. Meaning of Ware-Housing 2. Objectives of the Warehousing 3. Necessity 4. Functions. Meaning of Ware-Housing: In the word ‘ware-housing’, ‘ware’ means goods in the form of manufactured items, while ‘housing’ means a place for their safe keeping. Hence ‘ware-houses’ are go-downs which keep the goods and […]

Valuation of Materials Issued from Stores: 7 Methods

To find out the cost of materials issued from stores several methods are used. The choice of method should be based on the nature of material and the type of business. Following are some important methods, which are commonly used: 1. “First-in-First Out” Method 2. “Last-in-First-Out” Method 3. Average Price Method 4. Fixed Price Method […]

Records to be Maintained in the Stores

After reading this article you will learn about the records to be maintained in the stores. 1. Bin Card: This is a card which is attached to each bin, rack, shelf or other container for stores. A record of all materials entering or leaving the bin and balance of material in hand is kept in […]

Protection of Stores | Materials Management

The protection of stores from fire, rust and corrosion, dust, theft, weather, heat, cold and moisture is an important aspect of the store-keeping function. Each kind of material such as textiles, rubber goods, leather goods and metals require its own kind of care. The following points should be remembered in this connection: 1. To Protect […]

Codification of Materials in a Store

After reading this article you will learn about the codification of materials in store. In order to identify correctly to avoid confusion, and to save time and efforts to locate the item, proper codification is necessary. Proper codification has following advantages: (i) To avoid lengthy description. (ii) To have correct identification. (iii) To prevent duplication. […]