Page 174 - DMGT525_MATERIALS_MANAGEMENT

Unit 12: Stores Management

9. Dry storing is fairly a new concept in sack/bulk stores and has resulted in an extremely Notes
versatile and economical method of dry storage.
10. An exceptional advantage of dry storing is simplicity of operation and no mechanical
loading aids need to be used unless desired.

12.7 Keywords

Fixed Cost: A cost that does not change with an increase or decrease in the amount of goods or
services produced.
Variable Cost: A corporate expense that varies with production output.
Stock: The goods or merchandise kept on the premises of a business or warehouse and available
for sale or distribution.
Pilferage: Pilferage is the theft of part of the contents of a stock.
Deterioration: It is a symptom of reduced quality or strength.

Surplus Management: The technique of managing the funds of a company or financial
institution with the aim of earning a return on the available assets and creating
more assets than liabilities.

Location: An actual place or natural setting in which a film or broadcast is made, as distinct from
a simulation in a studio.
Layout: The way in which the parts of something are arranged or laid out.

12.8 Review Questions

1. How does a store helps in increasing the value of the material?
2. What is the purpose of store management?
3. How does a store facilitate surplus management?

4. Briefly explain the verification function of stores.
5. How does change of the location of store affects it financially?
6. What objectives should be kept in mind while planning and design of stores should be
carried out?
7. Explain briefly the costs involved in stores.
8. What are the problems associated with stores management?
9. What are the new developments in storing in India?
10. What is the role of chief stores officer in stores operations?

Answers: Self Assessment

1. Money 2. Retrieval
3. Records 4. Surplus
5. Verification 6. Strategic
7. Nature, value 8. Futuristic

LOVELY PROFESSIONAL UNIVERSITY 169