journey in corporate life

Unit -3
Purchase Management and Stores Management

,Overview

• Purchase Management and Stores Management
• Purchase Management
• Stores Management
• Economic Order Quantity

,Overview
• Purchase Management: Sources of Supply of
Materials, selection, evaluation of Vendors. Methods
• of vendor rating.
• Stores Management: Functions of Stores and
Materials control. Classification, Codification,
• Simplification and Standardization of materials. Bin
Card,Double-Bin and stores Ledger.
• Economic Order Quantity. Selective Inventory Control
Techniques: ABC, VED, FNSD & XYZ.

, Purchase Management
Purchase Procedure is the method in which purchase activities of materials
required are proceeded to and form the beginning.
Principles of Sound Procedure
• Accurate and Consistent
• Procedure is simple
• Definite and clear cut
• Encourages coordination between Departments
• Fixes the responsibility on Employee
• Highly Flexible
• Inexpensive
• Procedure should involve Lesser Degree of Control
• Fair Degree of Independence
• Procedure Encourages Future needs of Production and service
Departments