Stores Management and Materials Handling

STORES MANAGEMENT
AND MATERIALS
HANDLING
Nature of Stores
 Store as building where inventories are kept.

 Storage is the function of receiving, storing, and issuing materials.
 Stores ensures ready accessibility of major materials there-by efficient service to
users.
 Minimization of stores cost, and continuous supply is the prime function of
stores.
 Stores layout is a fundamental factor in determining the efficient performance
of stores department.
 A satisfactory storage system compromises between the use of space
and the use of time.
 Random location means that items can be stored in any storage

position which is available.
 Keeping stock on one side of the aisle in which case the layout is
called comb type .
 Stores manual is a written statement of policies, and procedures.

Stock Verification
 Periodic, continuous and low point inventory are three ways of stock
verification.
 Verification of stock when the stock is the lowest is known as low

point inventory verification.
 Periodic stock verification is taken once in a year.

Classification and Codification
 Classification and codification enables reduction in sizes, and

varieties.
• Principles of Classification and Codification
 Consistency, coverage of entire range of items, mutually exclusive

code and easily understandable are the principles of classification
and codification.
Store Layouts
• Comb type layout
• Tree Type layout
II. Materials Handling
 Materials handling is the art and science of moving, packing and

storing of substances in any form.
Objectives of Materials Handling
1. Lower unit materials handling cost
2. Reduction in mfg. cycle time
3. Better control of the flow of materials
4. Better working conditions
5. Better quality
6. Enhanced storage capacity
7. Higher productivity
Material Handling Principles
• Eliminate handling: If not, make the handling distance as short as possible
• Keep Moving: If not, reduce the time spent at the terminal points of a route as short as
possible:
• Use Simple Patterns of Material Flow: preferably straight line. If not, reduce
backtracking, crossovers and other congestion producing patterns.
• Carry pay load both ways: If not, minimize the time spent in “transport empty” by speed
changes and route relocations
• Carry full loads: If not, increase size of unit loads, decrease carrying capacity, lower
speed, or acquire more versatile equipment.
• Use Gravity: If not, try to find another source of power that is reliable
and inexpensive.
• Other considerations:
• Should include the movement of men, machine, tools and information
• Flow system must support the objective of receiving, sorting, inspecting,

inventorying, accounting, packaging, and assembling.
Selection and Design of Handling System
• Selection and design of the materials handling system should be done
along with the development of the layout, as each one affects the other.
Materials Handling Costs
 Materials handling costs include cost of owning and maintaining

equipment and cost of operating the system.
• Operating cost • Space cost

• Installation cost • Depreciation charges
• Maintenance cost • Salvage value
• Power requirement • Opportunity cost
• Insurance requirement
Factors affecting the selection of
Materials Handling Equipment
1. Production problem
2. Capabilities of the handling equipment available
3. Human element involved

Types of Materials Handling Systems
Types of material handling systems:
a. Equipment oriented systems
b. Material oriented systems
c. Methods oriented systems
d. Functions oriented systems

Selection and Design of Handling System
 Selection and design of the materials handling system should be

done along with the development of the layout, as each one affects
the other.
Types of Materials Handling Equipment
1. Conveyers
2. Cranes, Elevators and Hoists
3. Industrial Trucks
4. Auxiliary Equipment
5. Miscellaneous Handling Equipment

Stores Management and Materials Handling

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STORES MANAGEMENT

 Store as building where inventories are kept.

 Random location means that items can be stored in any storage

 Stores manual is a written statement of policies, and procedures.

 Verification of stock when the stock is the lowest is known as low

 Periodic stock verification is taken once in a year.

 Classification and codification enables reduction in sizes, and

 Consistency, coverage of entire range of items, mutually exclusive

 Materials handling is the art and science of moving, packing and

1. Lower unit materials handling cost

2. Reduction in mfg. cycle time

3. Better control of the flow of materials

4. Better working conditions

6. Enhanced storage capacity

• Flow system must support the objective of receiving, sorting, inspecting,

 Materials handling costs include cost of owning and maintaining

• Operating cost • Space cost

2. Capabilities of the handling equipment available

3. Human element involved

Types of material handling systems:

a. Equipment oriented systems

b. Material oriented systems

c. Methods oriented systems

d. Functions oriented systems

 Selection and design of the materials handling system should be

2. Cranes, Elevators and Hoists

5. Miscellaneous Handling Equipment

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