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Store Management
Store Management
Stores Management
Course Leader
R Arun
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Faculty of Engineering & Technology Ramaiah University of Applied Sciences
Lecture Objectives
At the end of this lecture, the students would be able to
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Faculty of Engineering & Technology Ramaiah University of Applied Sciences
Stores
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Faculty of Engineering & Technology Ramaiah University of Applied Sciences
Stores Management
Deals with planning, coordination and control of various
activities pertaining to effective, efficient, and economic
storage and store keeping
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Faculty of Engineering & Technology Ramaiah University of Applied Sciences
Functions of Stores
Receive raw materials, semi-finished, or purchased items
from vendors and check them for identification
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Faculty of Engineering & Technology Ramaiah University of Applied Sciences
Functions of Stores Contd
Maintain stock safety and in good condition to ensure that
they do not suffer from damage
Purchase order
Purchase officer releases the purchase order
The record contains details such as the material required and their
quantities, delivery and payment conditions and mode of logistics
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Faculty of Engineering & Technology Ramaiah University of Applied Sciences
Stores Records Contd
Invoice
A statement sent by the seller to the buyer
Provides details about the goods supplied, net amount payable for
goods and terms and conditions governing the sale
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Faculty of Engineering & Technology Ramaiah University of Applied Sciences
Stores Records Contd
Goods returned note
Sometimes a part of a lot or the whole lot received may not be of
acceptable quality
These goods have to be returned to the supplier
In this context, the goods returned note is prepared
Also called as a debit note and the suppliers account has to be debited
by the amount for the goods returned
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Faculty of Engineering & Technology Ramaiah University of Applied Sciences
Stores Records Contd
Stores ledger account
Maintained to provide details of the quantity, price, and amounts of
receipts, issues and balance of stocks on a day-to-day basis
At any given time, the physical quantity of stocks should match with
the balance as per the stores ledger account
A separate account is maintained for each type of material in the
stores
It should necessarily mention the method such as FIFO or LIFO,
followed to value the issues of stocks
It is a valuable tool for the costing department in exercising stores
control
Facilitates valuation of stock from time to time
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Faculty of Engineering & Technology Ramaiah University of Applied Sciences
Stores Records Contd
Bin card
Slip or tag attached to the bin where goods are stocked
Whenever materials are received or issued, an entry is made on the
bin card
Bin card reveals the particulars of the quantities of material received,
issued, and available as on a given date at a glance
Wherever separate bins are maintained for each component of the
store, each bin will have a tag hung on it
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Faculty of Engineering & Technology Ramaiah University of Applied Sciences
Purchasing
Deals with procurement of raw materials, machinery, service
etc. needed for production and maintenance of the concern
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Faculty of Engineering & Technology Ramaiah University of Applied Sciences
Functions of Purchasing
Requisitioning purchases
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Faculty of Engineering & Technology Ramaiah University of Applied Sciences
Functions of Purchasing Contd
Placing Purchase order
Market Purchasing
Purchase of goods usually in small quantities or in an emergency
without contract or negotiations
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Faculty of Engineering & Technology Ramaiah University of Applied Sciences
Methods of Purchasing Contd
Speculative Purchasing
Purchasing is done purely from the point of view of taking advantage
of a speculated rise in price of the commodity
Intent is not to buy for internal consumption, but to resell the
commodity at a later date when the prices have gone up and to make
a profit by selling
Goods may be those needed for internal consumption, but the
quantity shall be much more than the requirement so as to take
advantage of the upcoming price rise
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Faculty of Engineering & Technology Ramaiah University of Applied Sciences
Methods of Purchasing Contd
Contract Purchasing
The purchase department enters into an agreement with various
suppliers to supply goods at some future period periodically
Scheduled Purchasing
Purchasing is scheduled according to the requirements of organization
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Faculty of Engineering & Technology Ramaiah University of Applied Sciences
Procedure for Purchasing
Various departments send their requirements on a
requisition form
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Faculty of Engineering & Technology Ramaiah University of Applied Sciences
Procedure for Purchasing Contd
Potential suppliers are identified from catalogues,
quotations and past records
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Faculty of Engineering & Technology Ramaiah University of Applied Sciences
Summary
Stores management involves planning, coordination and
control of various activities for effective, efficient, and
economic storage and store keeping