Professional Documents
Culture Documents
Material Cost PDF
Material Cost PDF
MATERIAL
Economy in purchasing
Proper quality
Minimum wastage
Up-to-date information
Adequate records
Adequate safeguards and supervision
Minimum, maximum levels should be fixed
Budgetary control
Decentralized purchasing
PURCHASE PROCEDURE
Purchase requisition
Selection of suppliers
Receipt of materials
Quantity discount
Trade discount
Cash discount
Transport charges
Cost of containers
STOREKEEPING
Objectives of good storekeeping
Protection of materials from losses
Avoiding over-stocking and under-stocking
Economical use of storage space
Up-to-date stores records
Immediate location of materials required
Facilitating perpetual inventory
Speedy receipt and issues of stores
Minimize storage cost
CONT…
Functions and duties of storekeeper:
Maintaining materials in a tidy manner
Maintenance of records of materials received, issued and in
stock
Issuing materials against duly authorized store requisitions
Further supplies when reorder level is reached on any
material
Preventing the entry of unauthorized persons in the
storeroom.
Periodic comparison of bin card balances with physical
quantities in the bins
Advising management on obsolete and slow-moving stocks
CLASSIFICATION AND CODIFICATION OF
MATERIALS
A symbol may be assigned to each item of material
which is known as a code.
It may be numeric, alphabetic, or a combination of
numerical and alphabetical symbols.
Basic principles of coding:
Exclusive
Clear
Brief
Elastic
Mnemonic
STORE RECORDS
Perpetual inventory records
Bin card
Store ledger
Documents
Goods received note
Store requisition note
Bill of materials (specification of material)
Material return note
Material transfer note