Page 170 - DMGT525_MATERIALS_MANAGEMENT

Unit 12: Stores Management

 Main lanes or aisles should usually be 1.5 to 3 metres wide, depending upon the type of Notes
material and the amount of traffic involved.

 Clear markings should be made at storage space to facilitate location and identification.
 The fast moving items should be stored near the dispensing window; the slow moving
should be away from the window.

 The layout should permit the use of modern material handling equipment.
 Stores layout should encourage the FIFO, i.e. the old stock should be used earlier and the
storekeeper should not be compelled to keep the new stock above the old one.

 Due space should be left for expansion purposes in each portion.
 A pleasing and hygienic environment must be provided within the store room. This may
be done by proper selection of the colour of walls, provisions of exhaust removal, provision
of cleaning, etc.
 Adequate and clear lighting arrangements should be provided.
 Adequate safety provisions including fire-fighting equipment, alarms, accident control
and prevention methods should be in-built in the store room design.
 Special facilities, such as cold room, heating equipment, air-conditioning etc., if required,
should be carefully planned in advance.

Self Assessment

Fill in the blanks:

6. The location of stores is a ………..........……….. decision which if once taken cannot be
easily undone.
7. Store location depends upon the ………..........……….. and ………..........……….. of the items
to be stored.
8. The location and building up of stores should be done with a ………..........……….. outlook.
9. The planning and design of stores should be carried out to achieve minimum waste of
space and ………..........……….. of arrangement.

12.3 Cost Aspects and Productivity

It is mentioned incorrectly that each cubic metre of space should be employed by stocks for high
efficiency. This type of stocking may considerably decrease the speed of movement of material
frequently and create blockages apart from influencing the overall safety. Consequently,
maneuvering needs for tackling equipments and for minimizing the time needed for receipt,
stocking and issue, should be borne in mind at the planning stage in order to make sure real
efficiency and effectiveness.
Costs involved in stores can be analysed under two heads, vis., fixed and variable. Fixed costs
are to be incurred irrespective of the utilization of space of the stores. They include money spent
on land and buildings, rent, interest, repairs, maintenance, insurance, etc.
Variable costs vary with the volume of throughput. They consist of handling costs, damages,
deterioration, obsolescence, etc. Apparently, when the throughput or the volume of goods
handled is high, the total cost per tonne is low. This must be the aim of the stores manager in
order to optimise the costs in stores.

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