Page 166 - DMGT525_MATERIALS_MANAGEMENT

Neha Tikoo, Lovely Professional University
Unit 12: Stores Management

Unit 12: Stores Management Notes

CONTENTS
Objectives
Introduction

12.1 Purpose of Store Management
12.2 Store Location and Layout
12.2.1 Store Location

12.2.2 Layout and Design of Stores
12.3 Cost Aspects and Productivity
12.4 Problems and Developments
12.5 New Developments in Storing
12.6 Summary

12.7 Keywords
12.8 Review Questions
12.9 Further Readings

Objectives

After studying this unit, you will be able to:
 Explain the Concept of Stores Management
 Discuss the Purpose of Store Management
 Explain the Location and Layout of a Store

 Discuss the Cost Aspects and Productivity in Store Management
 Describe the New Developments in Storing

Introduction

In the previous unit, we dealt with the concept of purchase research and price forecasting. The
unit also discussed about forward buying. This unit will help you to understand the concept of
Stores management. The various section and sub section of this unit will also summarize the
problems and developments in storing. As all the activities in any organization cannot be
carried out at one point of time, storage is an inevitable process. It increases the value of the
material by simply carrying it overtime; no transformation of any characteristics is desired.
Thus a store in any company has a vital role to play. All other activities involving materials are
in day-to-day touch with the stores. In a majority of manufacturing organizations material
constitutes the major fraction of cost, i.e. 60 to 80% of total cost. The cost of capital blocked in
inventories is substantial. If this part of working capital is not properly managed the subsequent
losses may be enormous.
The success of the business, besides other factors, depends to a large extent on the efficient
storage and material control. Material pilferage, deterioration and careless handling may lead
to reduced profits. Stores management is concerned with carrying the right kind of materials in

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