Difination of centralized stores

 A store where all types of materials required for the organization are kept by one single department is called centralized stores . All the materials required are stored and issued by one single department is called centralized stores . All the materials required are stored and issued by this department only. when some new materials enter the stores , the store informs the departments fresh stocks materials are available for issue. 

            Advantage of centralized stores : 

There are several advantages of centralized stores :

1. minimum investment in stock , 

2.  In centralized stores proper control of materials is possible and comparatively easy , 

3. Less space is required because stocks are kept in minimum quantities , 

4.Not many staffs are required for operation , 

5. As all records are maintained centrally ,

6. Minimization of cost brings economy in storing and production , 

7. The store layout could be planned in systematic way . 

            Disadvantages of centralized stores : 

1. As there is only one store, it is practically difficult to keep near to the entire users department , 

2. Hence , it leads to increase in the cost of carriage , 

3. Transportation of materials is delayed if the store department is situated far from other department . 

4. Any disturbance in transport may affect production , ETC.