Stock Keeping / Store keeping/ Warehousing
Objectives of Store keeping
o Minimizing the cost of production.
o Maintaining the value of materials.
o Providing services to user department.
o Establishing coordination with other departments.
o Advising materials Manager
Types of Stores
o Main or centralized store.
o Branch or decentralized store.
o Central stores with sub store – it is the main store which can serve as a base with sub stores for each unit of production.
o Tool and miscellaneous store – for machine parts, spare parts, lubricants, etc.
o Warehousing – large godowns which preserve the goods in a scientific and systematic manner. They charge a fixed rent in advance.
Main centralized store
o It is generally a wholesale supplier to other units, departments, or sub-stores. Different departments do not purchase their requirement themselves.
o Advantages are a variety of goods supplied, less manpower, better control of materials, material handling is easy, wastage is less.
o Disadvantages are not suitable for a large manufacturing concern, more staff required safety and maintenance issue, record-keeping difficult.
Branch or centralized stores
o Different departments have their own stores to meet their requirements.
o Advantages are reduced material handling, no delays, less risk of theft, less transportation time.
o Disadvantages are Duplication in storage, labor utilization suffers, duplication of record-keeping, coordination and control is sometimes difficult.
Functions of stores Department
o Receipt.
o Storage.
o Retrieval.
o Issue.
o Records.
o Housekeeping.
o Surplus stock.
o Verification.
o Coordination and cooperation.
Stores Procedure
o Materials Planning.
o Receipt of materials.
o Receipt Procedure.
o Storage of Material.
o Inventory records/Record Keeping.
o Valuation of stock and material.
o Stock Taking and verification.
o Stores Preservation and Arrangement.
Significance of stores keeping
o Minimum investment.
o Continuous flow of material.
o Protection and preservation.
o Good quality at minimum cost.
o Fewer accidents.
o Proper storage for improved output.
o Minimum wastage.
o Coordination and cooperation.
.png)
0 Comments