Requirements for a System of Materials Control:
requirements or essentials of adequate satisfactory
system of materials control are as follows:
Use of Standard
Budgeting Materials and Equipment
Standards or Level
to be Fixed
Controlling Accounts and Subsidiary Records
of all departments involved, in material purchasing,
receiving, testing, approving, storage, issue and
accounting is essential.
purchasing in a purchasing department under the
direct and authority of a competent trained
purchasing agent is also considered essential.
The use of standard
forms for orders, requisition etc., upon which
written and signed instructions are given are
essential for proper control of materials.
Use of materials,
supplies and equipment budgets so that the economy
in purchasing and use of materials can be realized,
is important factor for adequate control of
Storage of all
materials and supplies should be in a designated
location properly safe guarded under supervision and
proper planning should be there for storing and
issuing of materials.
Operation of proper
perpetual inventory system should be used so that it
is possible to determine at any time the amount and
value of each kind of materials in stock. It also
enables the comparison of book inventory with the
result of physical counting.
A minimum quantity
of each item of materials, below which point the
inventory is not allowed to drop, and a maximum
quantity, above which stock is not carried should be
fixed. In the same manner ordering level and
economic order quantity may be determined.
operation of a system of stores control and issue is
introduced so that there will be delivery of
materials upon requisitions to departments in the
right amount at the time they are needed.
The operation of
internal check should be introduced to ensure that
transactions involving materials and equipment are
checked by reliable and independent officials.
accounts and subsidiary records reveal summary of
detailed materials costs at each stage of materials
receipt and consumption from the storeroom to
Regular reports and
information should be provided for the management in
connection with the purchase of materials, issues
from stock, inventory balances, obsolete stock,
goods returned to vendors, and spoiled of defective