Decentralized Store, Its Advantages And Disadvantages

Meaning Of Decentralized Stores

A decentralized store is that type of store which receives materials for and issues them to only one department and not to the whole company. The decentralized store may be in many numbers in the company, as each department has its own such store. Purchasing and handling of materials are undertaken by each and every department separately. If the volume of material activities is large, this type of store is suitable because each and every branch has their own store for facilitating smooth operations of their production activities.

Advantages Of Decentralized Stores

1. Controlling a and storing function can be accomplished easily.

2. Delay in material handling will be eliminated.

3. Minimizes the chances of loss by fire.

4. No need of internal transportation costs.

5. Specific needs of individual departments can be easily fulfilled.

6. Saving in material handling cost.

Disadvantages Of Decentralized Stores

1. Higher cost of supervision.

2. More space is required for individual departments.

3. Higher amount of investment is required.

4. More time for stock taking and taking.

5. Higher cost of staff and stationary.

6. Improved technique is less possible for controlling of materials.