4) Easy for the receipt section for the correct identification and verification of the materials and for

Purchase order 5) Easy Location , recording and Stocking of inventory Bin cards and stock card can be easily grouped Codification : Codification is defined as a symbol as a numerical code to a particular item. After Classification of different items in the store into Groups and subgroups according to their charac their inique code is allotted. There are different methods used for coding whichever method it should be slexible and simple Advantages 1) Lon names and descriptions can be easily replaced by a Unique Code 2) Accurate identification 3) Duplication is avoided 4) Helps in Standardization and reduction in variety 5) Easy Storing, locating and accounting 6) Helpful in selection of suppliers and effective communication Disadvantages Codes may be easily misunderstood. When large no of codes are pvt highly confusing and difficult to locate the materials without knowing the codes are percent it becomes diff to remember them for easy reference the materials name, description and codes will be published in a book . This is called stores vo cabu System of coding : Various types of coding system are used in mm 1) Numerical system: - Use only numbers .It is simple and commonly used. Simple numbers are used to represent diff groups and ned in between numbers are used to represent a particular material 2) Alphabetical system Here alphabets are used as symbols as codes useful for less wastage of items and duplication should be avoided. 3) Memoric system :- Also use alphabet but names are used as alphabet staty codesin order of their group / Sub group and materials 4) Alpha numeric system :- Here alphabets and numerics are together used . Item groups are coded by alphabets and subgroups and specific materials are coded by numbers. Advantages of both the numbers can also represent specificates `size length , thickness, volume weight etc. 5) Decimal system Here 10 units of decimal no, 0 9 are used, each digit has some specific significance . The number the decimal class groups. Groups / subgroups and the numbers after represents type , size, grade , shape , condition etc. Here one digit or two digit, ( ta Type, size and grade of more than 10 divisions are required )Decimal point is used after every two digits. Its flexible but complicated. If a decimal point is verify insu a amitted the whole system will to wher 6) Color co pcation Along with the numbers, the material are also marked with colors It is very helpful while counting and separating items. No universally accomplied standard for representing the clour pattern. It varies from conty to conty as from mang to mang a)Kodak system This system is developed in Eastman Kodak company. It is a numerical system which may 10 digits 343 (xxx-xxxx-xxx) the Trust group is based on purchase category dispatching and the source and supply Class and subclass ( 100and 10 ). The next groups is

based on the characterstics of the items (kind and type). (100and 100) The next group is based on the size and verification (100 & 10) Very flexible and capacity to accommodate very large no of items Class Subclass K nd Type Size Variation. Xx x xx xx xx x 53 0 10 20 05 1 7) Branch system similar to numerical system . Here 7 digit numerical code is present . It works in 3 phases 1) Materials are Grouped into suitable categories 1) Primary 2) Purchased 3) Components own design 4) Assembles and sub assem 5) Tools , jigs and fixtures 2) After primary Id and grouping, materials are subdivided according to their class character under decimal system . 3) Af subdivided to a still lower classification level Multipility of Standard in Indian industries The major problem faced by Indian industries is the multiplity of Standards of material and components This Industry leads to higher material cost due to delays in delivery which as holding of material in the investors for too lan due to delivery delays . Higher the holding higher is the carrying cost higher Overloads low investors turnover. Variety Reduction :- When purchases are made to meet some v req a good % of there material become slow m a ever a dead stock when a shant period. Function purchases are not liked with stock availability became the items are not properly identified and cataloed Protor Economic + Stage+variety Lower inventory cost + Proper usage Additional scope of activity + Rise in profit Return on capitalis considered as an effective measure of efficiency Ro 1 = Profit x Sales Sales investment (working capital) Profit to sales (1) (2) Rato investment Rato 1) Does not give a true pic as profit depends on many eternal fact on which may has little control 2) Sales to investment a working capital is an adequate measure and it is seen that in wc a large part is invested as industries Variety has benn increased because diff collabat and designers have made their own hat a carry standard . Variety reduction may be attempted 1) by elementary nonmoving and un sale itemsand 2) by elemenation of duplicate and unnecessary item held in stock Road blocks in standardization Standardization should not lead to mono and Pohibit innovation. It should not lead to n in design or retrict tech development. It should be based on previous practices and norms

Indian Standards ISI or BIS main onj is to prepare and promote the hournal adoption of standards on national and international basis . So tan used over 15000 Indian standards . Each of

these standards is the review of agreement reached in its tech contents between the Producers consumers, technologists, testing authorities others concerned with the subject of standardization . These standards constitute the ideal solution to various recovery Problems, Such as technical basis for contracts, manufact , purchase supply invest and testing .