STORE AND MATERIAL CONTROL
Introduction:-
Material and supplies constitute the most important assets in
majority of business enterprises.
The success of business, besides other factor, depends to a large extent
on the efficient storage and material control.
STORE MANAGEMENT
Store management takes care:-
1. Required material is never out of stock
2. No material is available in excess than required
3. Protect store against damage
This can be achieved through
4. Proper purchasing practice
5. Proper method of storing material
6. Proper method of keeping store records
FUNCTIONS OF STORE DEPT
• To receive materials, goods & equipment.
• To record the receipt of good
• To maintain a stock safely & good condition
• To record & update receipt & issue material
• To ensure that require material located easily
• To make sure that store are kept clear in good
order
LOCATION OF STORE
• Location of store should be carefully decided and
planed so as to ensure maximum efficiency.
• The best location of store is one that minimize total
handling cost and other cost.
• In general stores are located close to the point of use.
• All departments should have easy access to stores and
especially those which require heavy and bulky material.
ADVANAGES
• Centralization of store
1 Better supervision & control
2 Better lay out of store
3 Better security arrangement can be made
4 It require less personnel manage
• Decentralization of store
1 reduce material handling & associated cost
2 convenient for every department to draw materia
3 Less risk of loss by fire
4 less chance of production stoppages
LAYOUT OF STORE
• A good store layout practices is one which usually brings the
point, store room & point of use in adjacent & proper
sequence for best flow of material
• Planed with following objective:
1 To achieve minimum wastage of space
2 To achieve maximum ease of operating
3 It should minimise handling & transportation of material
4 It should make optimum utilisation of floor space
5 shelves , racks , bins should be situated in clearly define
lanes
RECEIPT OF MATERIAL
• All material from outside sources are received
by the receiving department
• the receiving department unpack the good
received & check the quantity & condition
• A copy of purchase order if it exist with the
receiving department , can be made use of to
check the item received
• otherwise, material receive report is prepared
by the receiving department & is sent to the
purchase departments
MATERIAL RECEIVED REPORT
Received: Purchase order no……….
At…………..
Delivery point
From……… …………. Date……………….
Vendor Address
Quantity Received Description Grade Condition of Goods
Counted by………. Approved BY…………….
Inspected by……… Title…………….
STORE RECORD
Two records are usually kept of materials and other good
received, issued or transferred namely on bin cards and store
ledger.
BIN CARD:-
Bin card is attached to each bin
A bin card is not consider as accounting record
STORE LEDGER
Store ledger are identical with bin card except that money
values are shown
PHYSICAL VERIFICATION OF
STORES
NECESSITY:-
•Ensure the correctness of stock
•Check losses in inventory due to
pilferage
improper storage
deterioration
•Correct and update store records
•Calculate the rate of turnover of an item
•Effect insurance covers
METHODS OF PHYSICAL STOCK
1) Annual physical verifications
Near the year end stores are closed
A team store inspector physically checked and count each and
every item laying in the company store
This method of stock taking is advantageous in the sense that all the items are
checked at one time
2) Perpetual inventory and continuous stock taking system
every item of the store is checked at least once a year.
3) For minimum workload , at item is checked at its minimum level.
ADVANTAGES:-
4) It is not necessary to close down the plant for stock taking
5) Only a few items are to be checked everyday , as compared to annual physical
verification.
