Stores Flashcards
The service rendered by a store can be categorized into four broad divisions
To make available a balanced flow of raw material, component, tool, equipment and any other materials necessary to meet operational requirements.
To provide maintenance materials, spare parts and general stores as require
To receive and dispatch finished products.
To accept and store scrap and other discarded Merchandise as they arise and also arrange for their disposal.
Stores Identification System,
two major systems for stores identification one for internal use and second for external use.
System for external use (facilitates sales transactions)
System for internal use(is meant for all departments to communicate unequivocally the identification and description of materials used.)
managers are responsible to develop a system for effective identification of materials carried in stores.
Stores manager and Materials manager
Internal System Design
The Harmonized Commodity Description and Coding System
The Export Commodity Control Numbers
The Harmonized Commodity Description and Coding System
It
provides a set of descriptions and a six digit code for item identification, description and reporting. Additional two digits can be added to provide more local detail.
Stores Vocabulary
When the operation of coding is complete, the lists of code numbers, descriptions, size etc. are published in a document known as the ‘stores vocabulary’.
All modern identification systems are based on
Universal Decimal Classification system. Generally used in libraries
Codification system used for identification of products achieves four objectives.
- Prevents duplication.
- Assures interchangeability & equivalence
- Standardization and variety reduction
- Efficient inventory control.
TYPES OF STORE
Centralized and Decentralized retail stores
Centralized structures
disadvantages
power being consolidated at the top of the organization, risk is great if the top of the organization becomes incapable of leading the organization
Employees also will feel less motivated to perform for the organization as they will not have an avenue for sharing their ideas on how to improve the organization.
Decentralized organizations
allows organizations to take advantage of
division of labor by sharing decision-making across the organization
empowers employees and allows them to improve their performance by being able to act to improve deficient or inefficient areas immediately without approval from the top of the organization.
allowing for the managers of business areas to actually use their first hand knowledge and experience to improve their areas
centralized structure would be considered
marketing
Controlling the public image of the entire corporation would prove beneficial over a long-term outlook, even though it might take some of the ideas and unique marketing strategies out of the hands of the people who know them best.
FUNCTIONS OF STORES
Provisioning and indenting of materials
Receipt and documentation of material
Repairs to equipment and furniture
Material:
- Dispatch
- Transportation
- Clearance
- Issue of material
- Quantitative Accounting
Engagement of casual labor
Disposal of surplus
storage, preservation and safe custody
direct store delivery
For manufacturers, direct store delivery is the process of creating goods, storing goods, and delivering them to retailers without the use of a third-party or intermediary shipper.
In CIL it’ll be made only when urgent and desirable.
Receipt of material
Source of supply
Main sources of the supply is:
- Against purchase order: Indigenous supplier and Foreign supplier
- Against Cash Purchase
- Item fabricated departmentally
- Surplus stores returned
Also from:
- For sale custody
- For repair
- Components after cannibalization of equipment.
- Scrap
