---
title: "Short note: Material inventory"
subject: "Construction Management"
chapter: 3
key: "semester_8/construction_management:material-inventory-note"
source: https://www.bctengineer.com/q/semester_8/construction_management/material-inventory-note
site: BCT Engineering
---

# Short note: Material inventory

Construction Management · Chapter 3: Planning Construction Material

- Asked in: 2070 Bhadra, 4 marks
- Video: [Material Storage and Inventory Control](https://www.youtube.com/watch?v=3xVaA2HxFQg) — Understanding Engineering
- Answer checked by Claude Opus 5.5 (high effort) on 2026-10-14
- Page: https://www.bctengineer.com/q/semester_8/construction_management/material-inventory-note
- Whole chapter: https://www.bctengineer.com/md/semester_8/construction_management/chapter-3

## Question

Write a short note on 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.

## Answer

**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.

## Check yourself

The answer's key points as multiple-choice questions, with the correct option and why.

1. Material inventory is:
   A. only cement
   B. the stock of materials held at store/site and the system of recording and controlling it
   C. payment records
   D. design drawings
   Answer: B. It ensures continuous work through stock and its control. (Key point: Meaning of inventory)

2. Which is a carrying cost?
   A. Preparing and placing orders
   B. Capital interest, storage, insurance, deterioration and theft
   C. Idle labour when stock runs out
   D. Transport of orders
   Answer: B. Ordering cost is for placing orders; shortage cost is from stock-outs; carrying cost is holding stock. (Key point: Inventory costs)

3. Which tool decides when to order?
   A. ABC analysis
   B. EOQ
   C. Re-order level = daily use x lead time + safety stock
   D. Stock register
   Answer: C. ABC focuses control, EOQ sets quantity, and ROL sets timing. (Key point: Control method)