10. Detailed records of goods ordered, received, issued and goods on hand should be maintained for A category of items. Tight control and accurate records are also required for scrap, loss and rejection of such items. No such detailed records are necessary for C items.
11.
12. Shrewd suppliers offer quantity discount on the purchase of category A items. The inventory controlled should verify through calculation if there is really some pecuniary gain or that the discount is just as eyewash.
14. Ready accessibility of fast moving items is a virtue of a good lay out. A category items are high cost items, with a fast consumption and categorized under F (fast) as well as H (high) category. A good layout enables tracking and avoids misplacement of such items. Architect and designer adept at factory building design see to it the lay out is strategically designed and deployed.
16. Management by exception should be applied to stock taking also. A item may be checked more often and C items. One of the decisions could be to check A items every month, B items every two months and C items every four months.
19. Annual stock taking is the process of making a complete count once a year of all materials, finished parts; work in process, finished goods, tools and supplies. The stock verification is generally undertaken at or near the close of the financial year.
21. Continuous stock taking, also called perpetual stock taking, is the process of taking physical counts of a few items daily and thus cover each item in the storeroom at least once a year. More important ones are verified twice, thrice, six times or even twelve times a year. A more rational approach is to relate the frequency of counts to the usage value classification—ABC analysis—under which items of high usage value are verified more often than those of low usage value.
23. This is the process of physical verification of an item when its store falls below the reorder level. The store keeper when with this system has the responsibility of notifying this to the department concerned.