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STORE AND STOREKEEPING
Stores play a vital role in the operation of a company. Generally unworked material is stored and the place where it is stored is called Store Room. It is in direct touch with the user departments in its day-to- day activities. The chief aim of the stores is to ensure the smooth flow of production without any interruption. Stores generally include raw materials, work in progress and finished goods.
Effective storekeeping and inventory control are indispensable to the control of material cost. Further, stores often equated directly with money, as capital is blocked in inventories.
LABORATORY STORE MANAGEMENT
The specific objectives of laboratory store management are :
- To ensure the availability of chemicals and equipment when needed.
- To reduce the cost of storage as much as possible by avoiding deterioration and wastages.
- To maintain accurate records and provide management data.
- To repair and maintain laboratory apparatus and items.
- An ideal store is that one which can meet the following requirements
- It must economically provide its services in a manner that it will economize funds allocated to it.
- It should simplify the problems encountered in classification and identification of chemicals, apparatus and equipment’s.
- It must allow continuously flow of materials in and out of the laboratory so that stock balances are adequate to support the current rate of consumption by the laboratory. It must therefore adopt an efficient and reliable system of receiving or giving out all materials, equipment and apparatus.
There is great need to recognize the problems created by lumping hazardous chemicals into the buying routine because these will aggravate and perpetuate the problem of storage and will increase wastage.
The laboratory staff should adopts laboratory a chemical requisition policy which should be aimed at completely eliminating or reducing the quantity of some substances purchased and also oversee the requisition process so as to ensure that proper chemicals in proper conditions are bought and stored in proper conditions .
PURPOSE OF STOREKEEPING
(l) Storekeeping helps to examine carefully all goods and materials on receipts.
(2) It is essential to arrange for a systematic and efficient storing of materials.
(3) Storekeeping ensures accurate and prompt distribution of materials to user departments as per issue requisition note.
(4) It is essential because stores often equated directly with money, as capital is blocked in inventories.
FUNCTIONS OF THE STOREKEEPER
The store is a service department headed by the storekeeper who holds the responsible position in the organization of the stores department. He is as much responsible for the articles in charge as a cashier for the cash. Important functions of the storekeeper are given below:
(1) He must receive raw materials, components, tools, equipment and other items and account for them properly.
(2) He must provide adequate and proper storage and preservation to the various items.
(3) He must check, and provide proper classification and codification of materials.
(4) Issue the materials as per material issue requisition duly signed by an authorized person.
(5) He has to take steps to prevent leakage, theft, wastage and deterioration.
(6) He must ensure good storekeeping.
(7) He should not permit any person without authorization.
(8) He should maintain proper records in order to know desired quantities available.
(9) He must provide adequate information to the top executives for verifications and effective decision making.
TYPES OF STORES
The types of stores depend on the size, types and policy of the organization. Organization of stores varies from concern to concern. As per the requirement of the firm the stores organization may be classified into:
(a) Centralized Stores.
(b) Decentralized Stores.
(c) hybrid store, i.e., Centralized Stores with Sub Stores.
Centralized Stores:
This system is suitable to small-scale industries where it is desirable to centralize the materials in one department. Under this system, the store room will be most conveniently situated where it is near to all the departments.
Advantages of Centralized Stores
(l) Well planned layout of stores.
(2) Effective utilization of floor space.
(3) Better supervision of stores is possible.
(4) Effective material handling is possible.
(5) Lot of manual work may be eliminated.
(6) Better control is possible.
(7) Less investment is required.
(8) Ensures minimum wastages.
(9) Facilitates prompt flow of materials.
(10) Better forecasting is possible.
Disadvantages
(1) Increases transportation costs.
(2) Delay and inconvenience because of over-crowding of materials.
(3) Greater risk of loss in case of fire.
(4) Break down in transport will affect continuous flow of production.
(5) Increases cost of materials handling.
Decentralized Stores:
Under this system each department has its own stores. It is suitable to large concern where there are several departments each using a different type of material from its own stores. In this system all the disadvantages of centralized stores can be eliminated
Hybrid store
This system is also termed as Imprest System or stores control. Centralized Stores with Sub Stores is usually adopted in large factories/ organization where departments are situated at a distance from the central stores. In order to minimize the cost of transportation and materials handling, this type of organization would be located nearer to the receiving department. Under this system material receipts are stored in the central stores and issues are made to the sub-stores. Under imprest system of stores control sub stores which are located nearer to the central stores for the purpose of draw supplies from central stores and issue the required quantity to production. To maintain the stocks at the predetermined level, the sub- stores make requisition from the central stores.