Institute of Commercial Management | Qualification Subject

Stores Management & Stock Control

Main Topics of Study

The Supply Function

  • Stores
  • Responsibilities
  • Organisation
  • Position of stores within the purchasing and supply organisation
  • Relationships with other departments
  • Materials management
  • Logistics
  • The supply chain concept
  • The British standard guide to stock control

Identification of Materials

  • Coding of materials
  • Advantages of a coding system
  • Code symbols
  • Interpretation of codes
  • Methods of coding
  • Self-validating codes
  • Organising a materials vocabulary
  • Specification
  • Bar coding
  • Variety reductions
  • Some widely used coding systems

Receipt and Inspection

  • Expediting
  • Receipts from suppliers
  • Transfers from other storehouses
  • Returns from production or other departments
  • Scrap arising
  • Inspection
  • Vendor quality rating
  • Marshalling receipts
  • Receipt of capital items within the organisation

Issue and Dispatch

  • Authorisation of issues
  • Identification of requirements
  • Timing of issues
  • Methods of issuing stores for internal use
  • Dispatch of goods outside the organisation

Records and Systems

  • Purpose of stock records
  • Manual systems
  • Computerised systems
  • Electronic data interchange
  • Current developments

Materials and Accounting

  • The value of stores in stock
  • Basis of material costing
  • Methods of pricing material
  • Arrangement of stores accounts
  • Provisions
  • Control of stock by value
  • Budgetary control
  • Annual audit

Approach to the Provision of Materials

  • Reasons for holding stock
  • Dependent and independent demand
  • Approaches taken in production organisations
  • Differing stock control needs of construction, service and retail organisations
  • The extent of stockholdings
  • Ordering quantities
  • Range
  • Consignment stocktaking

Stock Control Techniques

  • Provisioning
  • Approaches to control
  • Visual approaches to control
  • Programming deliveries
  • Ordering quantities
  • The need for differential control
  • ABC analysis classification of stock according to purpose
  • Forecasting demand
  • The use of probability in inventory control
  • The setting of recorder levels
  • The provision of safety stock
  • Simulation
  • Physical security
  • Responsibility for stock
  • Purpose of stocktaking
  • Periodic stocktaking
  • Continuous stocktaking
  • Stocktaking procedure
  • Treatment of discrepancies
  • Obsolescence and redundancy
  • Stock checking

Storehouses and Stockyards

  • New stores buildings
  • Large central storehouses
  • Storehouses serving one factory or operating unit
  • Hiring of storage accommodation
  • Stockyards
  • Construction of stockyards
  • Stockyard facilities
  • Buildings and enclosures within the stockyard

Stores Operations

  • Security
  • Knowledge of materials
  • Prevention of deterioration
  • Storehouse location systems
  • Flow
  • Departmental stores
  • Work-in-progress stores
  • Special storage facilities
  • Centralisation of storage and central stores
  • The assessment of stores efficiency
  • The measurement of stores efficiency
  • Redundant stock

Health and Safety

  • European directives on health and safety at work
  • Manual lifting
  • The control of substances hazardous to health regulations
  • Mechanical lifting
  • Fire precautions

Storage Equipment

  • Adjustable steel shelving
  • Bins
  • Pallets
  • Racks
  • Measuring equipment
  • Ladders and steps
  • Cleaning equipment
  • General tools
  • Live storage
  • Automation of warehouse work

Materials Handling

  • Benefits of proper materials handling
  • Manual handling
  • Mechanical handling
  • Assessment of handling problems for mechanisation
  • Hand-operated equipment
  • Power-driven equipment
  • The relationship of materials handling to transport

Procedures Manuals

  • The need for procedure manuals
  • Procedures
  • Advantages and disadvantages of a manual
  • Preparation of the manual
  • Contents of the manual
  • Publication and distribution
  • Implementation of the manual
  • Work study

Example Candidate Response Booklet

Example Candidate Response (ECR) Booklets are a source of crucial information for Centres and Candidates as they use real candidate responses. We ask Senior Examiners to comment on five or more responses in terms of why the mark was awarded with commentary about how to improve the answer (if necessary).

Recommended Reading

Main Text:

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Inbound Logistics Management: Storage & Supply of Materials for the Modern Supply Chain – B Crocker, D Jessop & A Morrison (Pearson)

Indicative Text:

Alternative Text and Further Reading: