Stores management

1. Stores management

2. Store management is concerned with receiving materials n to protect them from damage. It is related with issuance of material in right quantity at right time . • Functions of stores management :to maintain proper records of material ,requesting purchasing deptt to define their needs all the time, protecting material from damage, issuing material only to authorized person etc.

3. Stores should have proper lighting. It is also essential to follow all safety measures to avoid accident. Once d items r cleared from receiving section a provisional goods inward (PGI) notes r prepared n it is sent along with d material to inspection section. d PGI gives d information about material code , qty recd , rate, date of receipt, description of material etc. the inspection deptt will endorse this form after inspection then final goods inward note is formed based on PGI note. This process is applicable when goods r recd from outside supplier.

4. N if the items r recd from internal division then transfer notes n return to stores documents r used. Control is very much reqd at all the levels. There r two ways to have control on stores i.e. incoming material control and store accounting.

5. Incoming material control: the quality of incoming material can tested by either by acceptance sampling for attributes or acceptance sampling for variables. • Store accounting: store accounting is very much useful in determining the material cost of a product. The diff elements of cost of material recd r material price, taxes, insurance etc.. The issues of stores r accounted by using any of foll method

6. FIFO • LIFO • Avg cost method • Standard cost method • Market price method In FIFO method, the old stock is depleted first. In LIFO method, the most recent receipts r issued first. In avg cost method, the issues to d prodn deptt r divided into equal batches from each shipment at stock.

7. In std cost method , a std rate for material is fixed based on detailed analysis of mkt prices. This cost could b used for fixed period say six mths or above. • In mkt price method, the prevailing mkt rate of d material is applied for costing d material at the time of issue.

8. Types of stores • Receiving stores : these stores control the qty and quality of purchased material. It can b in regard to storage of material which is being rejected by co , or just a incoming material. • Main stores :these stores r concerned with storage n issuance of accepted material. These stores r used for keeping machineries, equipment , material etc

9. Warehouse :warehouses r used for storage of goods. It is a place where wholesalers keep large stock of their goods for selling it to retailers. • Special store :these stores r concerned with issuance , storage n receipt of material of special bank papers etc • Scrap yard: it is used to keep all type of scrap

10. coding • Coding is a method of specifying/ giving a unique specification no to material. it is essential for keeping track, for placing orders. coding is imp for those plants that have varieties of raw material. Characteristics • Long lasting • Proper n logical code • Not too lengthy

11. Methods of coding • Group classification/ coding method : group coding is grouping of inventories n assigning a unique code to each group. combination of no only can b used for the same. • The mnemonic coding method :in this method d combination of alphabets and numerals r used. • The hybrid system method :it is the combination of group classification and mnemonic coding method.