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Managment Chapter 5
Managment Chapter 5
Managment Chapter 5
STORAGE MANAGEMENT
It is an essential branch of an industrial unit. It is the depository of all materials required by the
industrial unit and supplies materials as and when required.
Different types of materials are required for different operations in a production unit.
The variety of items stored in store is too large that a planned system is necessary to keep them
safely, identify them easily and issue them with minimum efforts and time.
5.2 Objectives of Stores
Stores play a vital role in the operations of a company.
It is in direct touch with the user departments in its day-to-day activities.
The most important purpose served by the stores is to provide uninterrupted service to the
manufacturing divisions.
The objectives of stores can be classified as follows:
To receive raw materials, components, tools, equipments and other items.
To provide adequate, proper storage and preservation.
To meet the demands of the consuming departments.
To minimize obsolescence, surplus, and handling cost.
To highlight stock accumulation, discrepancies and abnormal consumption.
Apply effective control measures.
To assist in verification and provide supporting information.
The following departments are closely linked to the stores department.
3. Completion of the receiving report. Preparing receiving report based on the report from
inspection and other units.
4. Delivery of the material. Dispatching the received material for respected units and departments
according to their requirement.
Storing Materials
The type of equipment to be used in storage depends on the nature of materials to be used, the size and
quantity.
Bin- Bin is storage equipment with partitions for keeping small items. Each division in a bin is
called a pigeon-hole. Generally, only one item is stored in a pigeonhole.
Rack- Rack is an open type of storage equipment for keeping bulky materials. The
number of shelves will depend on the type of materials to be stored, quantity involved etc.
Pallets – pallets are specially designed platforms for the stacking of materials with a view to the
whole load being moved. They are made of either wood or metal depending upon the load they
are expected to carry.
Block stacking - is another version of storage method in which boxes or pallets are stacked
directly upon each other.
Stock issuance
Issue of materials, which is supply of materials from stores to the various users (department) of
an organization, is one of the routine activities of the warehouse.
The user departments often demand immediate issue of the materials for attending to urgent
repairs of plant and machinery.
Types of Stores
Materials held in a store can be classified according to the use they are put into.
The advantages of such a classification are that each broad category of use has its own
characteristics and hence needs its own system for proper control.
In a manufacturing establishment the materials can be classified as raw materials, work-in-
progress, bought-out components, spares, consumables and packing materials.
Finished Goods
Control of finished goods is normally with the marketing or sales department.
The peculiarities of the finished goods depend on the type of industry.
In a consumer product or a process industry the input to the stock is as per the production
schedule while the output will depend on the market conditions.