the nature of business, location of action, raw
material, market place etc. Stores' Layout is planned.
Hence it is necessary to have a look at different
types / classification of Stores:
There are basically two broad classes :
Functional Stores: It depends on the use
to which the material is put – chemicals, tools, raw
materials stores, etc.
Physical Stores: It depends on the size and
location – Central stores, Sub-stores, Transit stores,
Site stores etc.
Functional Stores can be further classified as:
Raw materials store:
This is where raw materials used in the factory are
stored. Usually, this is the largest kind and the
location should be such that it is situated alongside
a railway, canal or river. Where the deliveries are by
road, there must be adequate space for trucks to move,
turn and park. If sufficient provision is not made for
quick and easy loading or unloading, heavy demurrage
such stores need covered sheds. For example,
an engineering company whose raw material is
steel will store the steel plates in an open
yard. Similarly, a powerhouse using coal or a
fertiliser plant using sulphur will store
material in the open. A refinery will store
its crude-oil in tanks.
In certain cases where the raw materials may
be explosive dangerous or poisonous in nature,
complete segregation will be necessary.
Production also requires a large number of
materials, generally called "consumables", -
eye-shields, cutting oils, abrasives, gloves,
aprons, jigs, small tools etc. A store
stocking such items is called a Production
Various kinds of miscellaneous items like
paints, brushes, cleaning materials, wood and
spirit are kept here. In some cases where
there is no Production Store, the materials
mentioned in (ii) are kept in the General
All kinds of tools files, measuring
instruments, saws, small tools like hammers,
pliers, etc. or sell them as scrap. Steel
scrap is usually kept separately, preferably
in the open. Some metal scrap like copper can
be very costly and should, therefore, be kept
safely in covered stores.
Here materials rejected on the factory floor
are stored either with a view to salvage them
or to sell them as scrap. Steel scrap is
usually kept separately, preperably in the
open. Some metal scrap like copper can be very
costly and should, therefore, be kept safely
in covered stores.
Packing materials are kept here and these include
wood for making crates, cardboard cartons or
bottles, as in a pharmaceutical company, or empty
Spare parts store:
These spares are usually required by Maintenance
for repair or overhauling of equipment and
machinery in the factory. Such a store can also
have spares and components, which have been
manufactured in plant or purchased from outside
and meant for production. This is also called a
finished parts store, semi-finished parts store or
This is where goods are received from vendors or
those cleared from the railway station, airport or
the docks. The materials arriving here have to be
retained until they are inspected, finally
accepted and sent on to the respective places for
storage, or directly to where they will be used.
Here materials received from outside awaiting
inspection, and this is usually a part of the
receipt store. The term quarantine is used because
often inspection may not be completed in a day;
e.g., a lab test may be required for specific
items. In such cases, these materials are placed
in the Quarantine Store.
Finished Goods store:
Finished products of the company meant for
despatch to customers or for transfer to another
stock point or distribution center are kept here.
In many cases a particular shops produce an item
in batches, e.g., 1000 units. The other shops
might not be able to reach this figure or the
actual quantity required might only be 200. Here
rest of the 800 units in semi-finished from are
kept in the WIP Store for future use. This is
neither raw materials nor finished goods. It is in
an intermediate state. In some instances the Spare
Parts Store can also be a WIP Store.
Keeps office stationary for issued to various
departments departments of the company.
This is a store is goods on which customs or
excise duty has not been paid.
This type of store is used for storage of
perishable items like fruit, meat, chemicals,
medicine, vegetable, etc. it further comprises:
Chilled space store, where the temperature can be
controlled between 32 F and 50 F.
Freeze space store, where the temperature can be
controlled below 32 F
Flammable materials store:
This is used for the storage of highly
combustive material like oil, paints, etc. this
store consists of separate compartments
partitioned by fire walls, which is done with a
view to prevent movement of flames from one area
to another in the event of a fire. These fire
walls will normally have a four hour fire
resistance rating. The main dependence for fire
protection is placed on an automatic deluge type
sprinkler system connected to an adequate water
It meets the need of materials or equipment to be
stored in a moisture-free atmosphere (humidity
free condition). When properly sealed and
conditioned almost any type of item can be stored
These are normally roofed sheds without any walls
and open on four sides and are mainly intended to
protect goods from sun and rain. One can find such
sheds in ports, adjacent to berthed cargo ships.
They are specially adapted for the items are
handling of material shipped or received by sea.
Here the items are handled and stored in bulk
quantities. In certain cases, the Food Corporation
of India stores bags of rice or wheat in such open
sheds. ‘Transit’ signifies that storage is
temporary and that the goods are to be moved out
Dry tanks are used for long term storage and are
constructed entirely with steel, except for a
concrete floor. Because of the size and shape of
dry tanks, there is no operating aisle for
materials handling equipment. There is no direct
access into the tanks, which are sealed after
materials are stored in them. The dry tanks can be
temperature controlled and dehumidified.
A shed is a roofed structure without complete side
and end walls, and is used for the storage of
materials that require maximum ventilation or
those that do not require protection from weather.
This type of building is a compromise between a
yardstore and a closed stores building, because it
offers more protection to materials than former
but less than the latter. If necessary,
tarpaulins, can be used on the side for protection
during the monsoon. It is built at ground level
with a concrete floor.
This is used for storing bulk items, which do
not require specialised storage. Even though there
is no protection from sun and rain, the surface of
the open yard is normally levelled and is covered
by sheets or steel mats.
organization set-up of the stores will
depend upon the requirements, and have to
be tailor-made to meet the specific needs
of an enterprise. It may also be stated
here that separate buildings are not
necessary for these stores. They can all
be in one building in the manner described
above. The afore mentioned list is by no
means complete; one can have an infinite
variety. For example, one a military
establishment or a very big shipping or
Airlines Company can have a large number
of sepcialized types of stores.
Physical considerations: There can
be various types of stores based on the
quantity of stocks held or distance from
the point of usage, like central stores
sub-stores, transit stores, site store
There can be a central store serving three
or four factories or several shops in a
large factory or it can be a central
warehouse containing finished goods. The
word ‘central’ only denotes that it severs
various units each of which may have
separate sub-stores or departmental
stores. Central stores also exist in
One of the problems in having a central
store is the handling costs involved in
transferring materials to the sub-stores
or shop floor. Usually, therefore, the
central stores located at the point of
One of the main control factors in the
establishment of a central store is to
ensure that unnecessary inventories are
not built up by the sub-stores, or that
matter by the sub-stores and the central
stores should be considered as one.
A sub-store is located at the place of
usage. It can be even within the shop
This serves a particular department of a
factory. For example, in a textile mill there
can be several departments like spinning,
weaving, bleaching, printing, etc. each of
which can be served by a separate store. The
reason behind this is that each requires
sparate kinds of materials. This store, then
becomes a specialised store. Actually. There
need be little difference between this
category of store and a sub-store.
In some companies it can happen that several
factories belonging to the same group are all
in one compound. For example the J. K. Group
of Industries has several factories belonging
to the same owner, which have been set up in
one big industrial estate. There can be a
garment factory, a chemical plant, a radio
factory and a foundry all belonging to one
group and located at the same place. The group
stores can serve all these units.
This is usually at a project site containing
building or construction materials like
cement, steel, tools, etc.
Transit store: as its name implies, this is
where goods are stored for a temporary period.