About managing stores

1. 1created by K.G.Latshumi,M.B.A, VEC, Chennai

2. NATURE OF STORES
 Store as building where inventories are kept
 Function of receiving, storing, and issuing materials
IMPORTANCE:
 Ready accessibility
 Efficient space utilization
 Flexibility of arrangement
 Reduces need for material handling equipment
 Minimizes the material deterioration
 Easy of physical counting
2created by K.G.Latshumi,M.B.A, VEC, Chennai

3. FUNCTIONS
 To receive raw materials and account for them
 To provide adequate storage and preservation
 To meet timely demand of the consuming departments
 To minimize obsolescence, surplus and scrap through
proper codification, preservation and minimization
 To highlight on stock accumulation, discrepancies, and
abnormal consumption and to take corrective actions
 To ensure good house keeping
 To provide information to the purchasing department
3created by K.G.Latshumi,M.B.A, VEC, Chennai

4. STORES LAYOUT
4created by K.G.Latshumi,M.B.A, VEC, Chennai

5. Fixed
location
Zoned
location
Random
location
Storage system-ways of locating stock
5created by K.G.Latshumi,M.B.A, VEC, Chennai

6.  Can be based on the following
suppliers- supplier A & B
similarity of items- Coal and other fuel
joint issues of item- oil and petrol
size and frequency of use
Random Location:
Items will be stored in any storage position which is
available
zoned Location:
Goods of a particular product group are kept in a given area
May be randomly stored in a zoned location
or stored according to the fixed position
Fixed location:
Goods of a particular type have position in the store
assigned to them particularly
6created by K.G.Latshumi,M.B.A, VEC, Chennai

7. Stores
layout
comb
Tree
type
Key word: Aisle
position
7created by K.G.Latshumi,M.B.A, VEC, Chennai

8. MEASUREMENT OF STORES EFFICIENCY
8created by K.G.Latshumi,M.B.A, VEC, Chennai

9. Stock verification types
 Periodic or fixed annual inventory
 Continues or perpetual inventory
 Low point inventory
 Classification and codification:
stores can be grouped in to 12 groups on the basis of their nature and
usage.
1. Raw materials 7. components
2. Consumable stores 8. Spare parts
3. Tools 9. Packing material
4. work-in-progress 10. Finished goods
5. Hardware 11. Motors
6. Gear box 12. CKD-completely
knocked down item
9created by K.G.Latshumi,M.B.A, VEC, Chennai

10. 10created by K.G.Latshumi,M.B.A, VEC, Chennai