After reading this article you will learn about the codification of materials in store. In order to identify correctly to avoid confusion, and to save time and efforts to locate the item, proper codification is necessary. Proper codification has following advantages: (i) To avoid lengthy description. (ii) To have correct identification. (iii) To prevent duplication. (iv) To standardise the items. [...]
Generally, the following two methods are used for physical verification of stock: 1. Annual Physical Verification 2. Perpetual Inventory Control. Method # 1. Annual Physical Verification: In this an independent person of a high rank known as verifying officer checks the stock lying in store once in a year, so as to see that the quantities as shown in store-ledger, [...]
After reading this article you will learn about the inventory buildup and actions for avoiding it. Inventory buildup starts because of the reasons, either (i) items get ordered in excess of the requirement or (ii) they do not get used at the same rate at which they are received. To overcome the first possibility, orders should be placed after consulting [...]