Page 209 - DMGT523_LOGISTICS_AND_SUPPLY_CHAIN_MANAGEMENT

Logistics and Supply Chain Management

Notes 2. Shipment …………………… is an economic benefit of warehousing.
3. A …………………… with packaging or labelling capability allows postponement of final
production until actual demand is known.

4. …………………… is most often used in physical distribution.

9.2 Warehouse Operations

Stores range from ordinary ones with shelves and bins to cold or dehumidified storages, huge
silos for storage of food grains or bonded stores for keeping goods on which customs and excise
duties have not been paid. The number of different storage devices is almost as large as the
number of different materials. A schematic diagram of production support store’s activities is
given in Figure 9.2.
Figure 9.2: General Schematic of Stores Activities

Source: Upendra Kachru, (2010), “Exploring the Supply Chain,” Excel Books
Stores functions focus on the physical movement and storage of goods and materials. This
involves managing the physical flow of materials into and out of the organization and developing
and managing networks of warehouses when needed.

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Caution The stores department should be under the control of a stores manager. He is
responsible for receipt, storage and issue of materials.
The functions can be divided into a number of duties and responsibilities. These are as follows:

(a) To receive materials, arrange for inspection and accept them after proper verification of
documents
(b) To prepare stores received note promptly and circulate the copies to other departments
(c) To store the accepted materials of right quantities against authorized stores requisitions
(d) To issue correct materials of right quantities against authorized stores requisitions

(e) To enter receipt, issues and return of materials in the bin cards, and to maintain other
stores records
(f) To issue purchase requisition when reordering level is reached
(g) To check bin card balances with the physical quantities in the bins periodically

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