- Materials should be of the desired quality and specifications to avoid returns and reduce
on wastage in the production process.
- Stock levels should be monitored. Materials should be ordered when authorized or
required.
- Supplies should be efficient and effective. They should minimize lead-time and not
overprice.
- Materials should be appropriately inspected before they are stored. This should be
done against purchase order by knowledgeable personnel.
- Materials should be protected from physical deterioration and theft.
- There should be periodic views to check that all the quantities bought are accounted
for.
- A simple method of coding all stocks of materials should be identified and properly
classified before issue.
- There should be proper documentation at each stage from purchase requisition, order
receipt up to when goods are issued.
- Materials issues should be properly allocated/charged to the relevant cost units for
direct materials and to the appropriate cost centres for indirect costs.
marto answered the question on February 26, 2019 at 09:52
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