- 2070 Bhadra · 4 marks
Short note: Material inventory
Short answer
Material inventory is the stock of materials and the recording/control system. Types: raw, work-in-progress, safety stock. Costs: ordering, carrying, shortage. Control uses ABC analysis, EOQ, re-order level (daily use × lead time + safety stock), stock registers, and periodic verification to balance capital investment and work continuity.
Write a short note on material inventory.
Material inventory is the stock of construction materials held at the store or site (cement, steel, bricks, aggregate, fittings) to ensure continuous work, as well as the system of recording and controlling it.
Types
- Raw materials and consumables; work in progress; spare parts and tools; safety (buffer) stock.
Costs
- Ordering cost: preparing and placing orders, transport.
- Carrying cost: capital interest, storage, insurance, deterioration, theft.
- Shortage cost: idle labour and delay when stock runs out.
Control
- ABC analysis to focus control on high-value items.
- EOQ to find the order size, and a re-order level to decide when to order: ROL = daily use x lead time + safety stock.
- Stock register (bin card), goods received note and issue by requisition; periodic physical verification.
Good inventory control keeps stock low enough to save capital, yet high enough to avoid delay.
✓ Answer checked by Claude Opus 5.5 (high effort)