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Presented To

Dr. Umesh Choudhary

HOD Mba

Presented By

Vikas Singh Jamwal

Mba 2nd Sem

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STORE MANAGEMENT

PURPOSE

FUNCTION

ISSUE OF MATERIAL

VERIFICATION

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The term stores, storehouse,

warehouse etc refer to thephysical place be it a building or

a room where materials of all

variety are kept.

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the basic purpose served by stores isthe provision of uninterrupted serviceto manufacturing divisions.

stores act as a cushion betweenpurchase and manufacturing on one

hand and manufacturing and marketingon the other.

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the task of store keeping relates to

safe custody and stocking of

materials, their receipts, issues, and

accounting with the objective of

efficiently and economically providing

the right material at the right time

whenever required in the right

condition to all user departments

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1. RECEIPT

2. STOCKING

3. ISSUES

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4. issue materials to the consuming departmentsagainst authorised requisitions and account forthe same

5. arrange for inspection of incoming materials.

6. maintain accurate and up

to

date records ofmaterial received, issued, rejected, disposed, and

quantity on hand of all the items

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7. ensure that all documents relating to receipts andissue are sent to stock control, accounts and

other concerned departments.

8. undertake stock verification as per approved

procedure.

9. to highlight stock accumulation, discrepancies andabnormal consumption and initiate appropriate

control action, wherever necessary.

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10. to minimise obsolescence, surplus andscrap through proper codification,standardization, preservation andhandling.

11. to ensure good housekeeping so as tominimise the need for material handling.

12. to accept and store scrap and otherdiscarded materials.

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First in first out

Is governed by the principle that the materials

which are received first are issued first

The issues are priced at the cost price of theoldest consignment then next oldest.

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LIFO method reverses the procedure asfollowed under FIFO

The cost of the last lot of materials receivedis used to price the iisues

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It is done in two ways

Simple average of the stock on hand at theprice of the issue.

On the basis of simple average cost of eachkind of material on hand at the close of the

month.

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This method is also known as market pricemethod under which the material issues arepriced at the prevailing market price on thedate of the issue.

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Periodic inventory verification

under this method all items of the store roomare verified through counting, weighing,measuring at the end of the specific period

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All the items are verified rotatively on thecontinuous basis. Generally those itemswhich have reached a minimum level areselected for the verification.

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S.A. CHUNAWALLA

WWW.GOOGLE.COM

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