Stores definition
/What are Stores?
The stores term refers to the materials maintained by a business in inventory. The term can also refer to the function of holding and issuing inventory, such as a warehousing operation. In either case, an inventory tracking system is needed to ensure that the materials management staff has correct information about the number of units on hand.
Stores Tracking
There are several options available for stores tracking, which are as follows:
Bin system. Under the bin system, inventory items are piled up in storage receptables. No attempt is made to keep track of the number of individual units. Instead, when the quantity in the bin falls below a line painted on the side of the bin, the stores person places a replenishment order. This approach is used for very inexpensive items.
Individual tracking. Under the individual tracking system, each unit is assigned to a specific storage location, and tracked in a computer database. When units are added to or removed from this location, the change is noted in the database. Ongoing cycle counts may be used, to verify that the amount on the shelf matches the amount in the database. This approach is used for more expensive items.