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Lecture 1c

The material control process encompasses purchasing, receipt, storage, inventory control, and costing procedures, with a focus on balancing price, quality, and delivery. Key documents include the Purchase Requisition for initiating purchases, Goods Received Note for invoice approval, and Materials Requisition for stock record amendments. Continuous stocktaking is crucial for effective inventory management, and centralized stores can offer advantages but may also lead to delays.

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20 views1 page

Lecture 1c

The material control process encompasses purchasing, receipt, storage, inventory control, and costing procedures, with a focus on balancing price, quality, and delivery. Key documents include the Purchase Requisition for initiating purchases, Goods Received Note for invoice approval, and Materials Requisition for stock record amendments. Continuous stocktaking is crucial for effective inventory management, and centralized stores can offer advantages but may also lead to delays.

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charleschirwa477
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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The material control process includes: Purchasing, Receipt, Storage and Issue, Inventory Control, and

associated costing procedures. b. The purchasing function is very important and aims for an appropriate
balance of price, quality and delivery. c. The Purchase Requisition giving precise details of quantity
required, specifica- tion, delivery etc. initiates the main purchasing procedures. d. The main purchasing
procedures are: supplier search, supplier selection, ordering and progressing deliveries® e. Goods must
be properly received, inspected and a GOODS RECEIVED NOTE (GRN) raised. f. The GRN is an important
document which is used in the supplier invoice approval procedure. g. Storekeeping involves issue and
receipt of materials, storage space organisa- tion, protection of materials from deterioration,
stocktaking etc. h. Items should not be issued from stores unless covered by a Materials Requisition
(MR). i. The MR is used for amending the stock records and for charging the issue direct to production or
to a particular cost centre. j. Stocktaking is carried out on a Periodic (usually annual) or Continuous basis.
Continuous stocktaking is essential for Perpetual Inventory systems. k. Centralised stores have the
advantage of lower stocks, better facilities and staff and some administrative savings, but may cause
inconvenience and delays.

POINTS TO NOTE 12. a. Many variations exist en the basic systems outlined in this chapter. In particular
where there is continuous or assembly line operation, purchasing procedures are often integrated with
production control and deliveries are received continuously, frequently directly to the production floor.
Whatever the system, adequate, well designed controls are essential. b. Because there is no clear
advantage one way or the other, many organisations have a large central store supported by a number
of smaller outlying stores. c. The process of Continuous Stocktaking is sometimes known as Stock Audit.
d. Where a substantial quantity of items are required from stores say, for a particular job, the issue may
be authorised by a Bill of Materials or Requirements Schedule, detailing all the items required rather
than individual Material Requisitions. Frequently the Requirements Schedules are computer produced
and the items required would be listed in the most economical sequence for the storemen, i.e. in
location sequence or “Picking order’. &

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