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Archive | Materials Management

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 […]

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 […]

Physical Verification of Stock: 2 Methods

Generally, the following two methods are used for physical verification of stock: 1. Annual Physical Verification 2. Perpetual Inventory Control. Method # 1. Annual Physical Verification: In this an independent person of a high rank known as verifying officer checks the stock lying in store once in a year, so as to see that the […]

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. […]

Inventory Buildup and Actions for Avoiding it

After reading this article you will learn about the inventory buildup and actions for avoiding it. Inventory buildup starts because of the reasons, either (i) items get ordered in excess of the requirement or (ii) they do not get used at the same rate at which they are received. To overcome the first possibility, orders […]

Integrated Materials Management

After reading this article you will learn about:- 1. Meaning of Integrated Material Management 2. Objectives of Integrated Material Management 3. Advantages. Meaning of Integrated Material Management: Materials Management as a function is responsible for the co-ordination of planning, Sourcing, Purchasing; Moving; Storing and Controlling materials in an optimum manner so as to provide a […]

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