1. Excessive inventory or low inventory turnover ratio.
  2. Long and uncertain replenishment lead time.
  3. Large proportion of non moving (dead) in stock.
  4. Excessive material handling / transportation cost.
  5. Spoilage, scrap or waste of material.
  6. Delays in meeting requirement.
  7. Long retrieval and issue time in store.
  8. Poor storage methods.
  9. Buying from wrong source.

10.  Excessive purchasing bill.

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11.  Too much variety of parts, lack of standardization.

12.  Lack of material codification.

13.  Long and inefficient purchase procedure.

14.  Poor records keeping.

15.  Quality problems for incoming materials, Inventory turnover ratio can be a good indicator of materials management’s effectiveness and to control inventory we have to look at total system cost-both visible and hidden.

 

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