Question

Advantages of codification in material management

Answer 1

1. Rational codification is of utmost importance in order to locate incoming and outgoing materials quickly and accurately, to provide necessary information concerning the exact whereabouts of the materials and to supply correct and timely data to the concerned departments. It is, therefore, clearly desirable that the goods in the store house should be arranged in the sequence of the stores’ coding system, as far as practicable.



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2. By codification long description of materials is avoided. Names of materials are simplified by choosing symbols which are simple, clear and free from duplication. Moreover, by it secrecy can be maintained which is the essential part for the smooth functioning of the business.

3. Coding system also simplifies mechanical recording as limitations of machines, prohibit the use of long descriptions because of the time it would take to record or the mechanical complications involved. The Kardex or Visidex system or mechanized purchased card system or electronic computer can be operated only after the store items are suitably codified.

4. A large number of store items are reduced to smaller group of items in a systematic way which helps in standardization of materials and encourage various uses of the same item.

5. Because of codification, receipt notes, issue notes, stock taking sheets and in-fact, all basic stored departments, can be stored into code number order posted easily to stock records which are arranged in the same order.

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