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Store functions concerns receiving, movement, storage and issue of materials – raw material bought out parts, tools, spares, consumables and finished goods. etc. – required for production, maintenance and operation of the plant. Incase of finished goods - till they are dispatched to the market for selling purpose.

Responsibilities of store management are To receive materials, to protect them while in storage from damage or unauthorized removal, to issue materials in the right quantities, at the right time, at the right place and to provide services at the least cost. Functions of Store Management –         Requisitioning from Purchase department an economical quantity of material for delivery at the most appropriate time. Exercising control on quantity of material received. Storing and protecting materials against hazardous condition, weather, deterioration and pilferage Issuing the material against properly authorized material requisitions. Maintaining the exact record of all receipts, issues and balances to facilitate ordering of required material. Maintaining the adequate record of receipts and issues. Maintaining adequate stock of materials to serve production needs Keeping inventory investment in desired limits.

Types of stores –      Receiving store. Main store. Finished product store [warehouse]. Special store. Scrap yard.

Receiving store – it performs the activities necessary to exercise control on quality and quantity of purchased material before they are accepted and taken into stock. It can be further divided in three categories like, a. Inward store to keep incoming materials until they are accepted and taken into stock. b. Quarantine store to serve temporarily which are under dispute and require suppliers or transporters certification. For example quantity discrepancy in the consignment transit damage to the goods etc. c. Rejection store to stock defective (non conforming) goods until they sent back to the suppliers.

Main store - It performs the activities concerning storage and issue of accepted materials and maintenance of records. Main store may be either centralized and housed in a large godown or decentralized and located near point of use. Main store is divided as under, a. Crib store to stock cutting tools, hand tools, measuring instruments and gauges etc. to the workers in the beginning of the shift and at the end of the shift. b. Finished part stores to stock components and parts produced in economic lot size. c. Maintenance store to stock spares of plant and machinery.

Warehouse to perform activities concerning receipt, packaging and packing, dispatch of finished goods to different destinations and handling of connected papers and documents. Special store – to perform activities of receipts, storage and issue of special material some examples are, a. „Bonded store‟ to store materials „Hypothecated to banks‟ to stock or „excisable goods etc. b. Statutory goods to stock materials namely kerosene, diesel and other petroleum products requiring strict conformance to safety precautions stipulated as per statutory regulations. c. “temperature controlled store” to stock perishable items such as meat, fish milk, vegetables, fruits or goods like rubber and rubber parts, active ingredients like antibiotics and vitamins, and others which require temperature controlled store room. Scrap yard – to perform activities of receipt, segregation and storage of different types of scraps.

Benefits of scientific storekeeping-

Storekeeping is now realized, is as much as science as production or marketing. It is a key result area for management. Efficiency in production or maintenance and distribution largely depend on the efficiency of store department and its personnel at the operational level. Inventory management with its impact on the profitability of a company relies on the efficiency with which personnel maintain records, implement procedures and report on performance. Benefits can be achieved by following different ways, a. Scientific stock control it reduces losses due to accumulation of inventory. b. Efficient stores issues, it reduces down time in production and increases profit. c. Periodic reviews – it detects obsolete and non-moving items and helps the firm to get rid of non-productive inventory. d. Follow up with purchase it helps to avoid stock outs and hence production losses. e. Proper records keeping it provides exact picture of inventory in store to higher management.

Store location is a process of selecting the appropriate site for the store building in the organization and deciding how material are to be placed inside the store so as to provide efficient and prompt service to the user department. Location of the store must be based on the activity relationship between store and other departments.

Principles of good store location Economy in cost of transportation – location of the store building has a effect on the cost of transportation. Unnecessary movements should be avoided.    Store building should be located within the factory premises or nearer to the workplace where material is required. While selecting the place of store building, the material handling facilities for transportation of the material should be taken in account. Proper road and rail facilities are to be considered. Approach roads are to be considered.

Effective service Location of the store should result in efficient service to the user department for which activity relationship between the store and user department must be given due consideration.   Raw material storage should be nearer to the shop. Finished goods store should be located nearer to the shipping area.

Reduced fire risks Material should be stored in locations which minimizes the fire hazards    Inflammable material like petrol should be stored separately. Combustible material like paints, oil, grease diesel, kerosene, cotton waste should be kept away from each other and from general store. Oxidizing agents should be kept away from combustible materials.

Security   Storeroom should be away from main gate premises. Storeroom should not be located near the factory wall where they are likely broken into by outsiders.


Main store should be placed in such a way that supplier‟s representatives, drivers and others do not have easy access.

Minimization of risk of spoilage and deterioration  While selecting the suitable site for the store, due consideration should be given to temperature, humidity and light requirements. Flexibility for future expansion – while selecting store site, future expansion needs must be considered. Sufficient space should be available for future expansion of the store department to prevent crowding or congestion to avoid th shift the store to another location at a later date. Overall integration of factors – since it is impossible to satisfy each and every factor, store location should be such that it results in overall integration of factors.

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