2. STORE/STORAGE :
Defined as :
* Building where goods kept.
* Function of receiving , storing and
issuing material .
* Act of storing the goods .
3. Functions of stores
To recieve raw materials and account them
To provide adequate and propeer storage
and preservation to the various items.
To meet the demands of the consuming
deprtaments by proper issues and account
To minimise obsolescence, surplus and
scrap through proper codification ,
preservation and handling.
To highlight stock accumulation ,
discrepancies and abnormal
consumption and effect control
To ensure good housekeeping so that
materials handling , materials
preservarion , stocking reciept and
issue can be done adequately.
To assist verification and provide
supporting information for effective
5. In short:
Interaction & coordination
6. OBJECTIVES OF STORES
1. Protection of goods in Store
2. Make goods available for delivery
3. Provide low cost services of store-
4. Making the store facilities nearer to
5. Maintain adequate quantities of material,
neither excess nor low
6. Placing of orders on EOQ (Economic
order of Quantity) principle
7. Maintain stores in clean/good condition
8. Ensure safety and security of the store.
The term inventory includes materials,
goods in process , finished packaging,
spares, and others stocked in order to
meet an unexpected demand an
unexpected demand or distribution in
14. Objectives of inventory management:
Ensure continuous supply raw materials and
supplies to facilitate uninterrupted production.
Maintain sufficient finished goods for smooth sales
operation and efficient customer service.
It facilitates product display and service to
It helps to utilise people and equipment reasonably.
It helps to reduce material handling cost.
Reduce dependencies of one another and enable,
organisations to schedule its operations
independently of another.
16. Benefits of inventory management and
Inventory control ensures an adequate supply of
materials, stores, etc. Minimises stock outs and
shortages, and avoids costly interruptions in
It provides check against the loss of materials
through carelessness or pilferages.
It permits a better utilisation of available stocks by
facilitating inter-department transfers within a
It makes management to make cost and
consumptions comparisons between operations
It keeps down investments in inventories, inventory
carrying costs and obsolescence loses to the
17. Process of inventory management & control.
Step 1: determination of optimum
inventory levels and procedures of
their reviews and adjustments.
Step 2 : Determination of the degree
of control that is required for the best
Step 3 : Planning and design of the
inventory control system.
Step 4 : planning of the inventory