Concept And Meaning Of Central Store With Sub-stores,Its Advantages And Disadvantages

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Concept And Meaning Of Central Store With Sub Stores
This is a mixed store system, a mix of centralized and decentralized stores. Under this store system, sub-stores are established in different departments according to the requirement of the company. Sub-stores are maintained at each department when the central store is at a distance from the production department. Such sub-stores are managed and controlled bu the central store itself. At the beginning of a period, the central store issues a fixed quantity of materials to the sub-stores. At the end of the period, sub-stores send a filled requisition form to the central store to maintain the stock to a predetermined level.

Advantages Of Central Stores With Sub-stores

1. Overcoming the demerits of centralized stores.
2. Offering an easier location for storing of materials.
3. Avoiding delay in issuing materials.
4. Providing services to meet the special needs of individual departments.
5. Reducing the internal transportation cost.

Disadvantages Of central stores with sub-stores

1. High cost for stationary and staffing.
2. High material handling cost.
3. More time in stock taking.
4. Extra set-up cost.
5. Complicated store control.
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