Introduction

As all the activities in any organization cannot be carried out at one point of time, storage is an inevitable process. It increases the value of the material by simply carrying it overtime; no transformation of any characteristics is desired. Thus stores in any company have a vital role to play. All other activities involving materials are in day-to-day touch with the stores. In a majority of manufacturing organizations material constitutes the major fraction of cost, i.e. 60 to 80% of total cost. The cost of capital blocked in inventories is substantial. If this part of working capital is not properly managed the subsequent losses may be enormous. The success of the business, besides other factors, depends to a large extent on the efficient storage and material control. Material pilferage, deterioration and careless handling may lead to reduced profits. Stores management is concerned with carrying the right kind of materials in right quantity, neither in excess nor in short supply, providing it quickly as and when required, keeping it safe against any kind of deterioration, pilferage or theft, and to carry out the efficient performance of all these functions at lowest possible cost.