Administration Manual - B.E.S.T. Undertaking.

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would get pulled on for some days. However, the quality of
work may suffer.
11.3 ‘D’ (Desirable): These are less important items. The work
could be pulled on with substitute materials in case of non-
availability. The work does not suffer.
All the stock items have been studied from application point of
view and appropriate category, viz. ‘V’, ‘E’ & ‘D’ is assigned to the
same.
12. Combination of ‘ABC’ and ‘VED’ classification
In order to have cost control as also control over stocks and
maintain availability of ‘Vital and ‘Essential items, the items are
classified with ‘ABC’ as well as ‘VED’ techniques and are identified in
the following groups:
A/V B/V C/V
A/E B/E C/E
A/D B/D C/D
These classes and categories are marked in BIN Cards and Master
Cards. Recoupment policies, procurement policies are decided
considering the class and category, i.e. it is always desirable to have
more sources for ‘Vital’ items. Also higher inventory is maintained in
case of ‘Vital’ and ‘Essential’ items, very close control over stock-outs
is kept in case of A/V and B/V items. In case of A/D and B/D items,
lower inventory levels are maintained.
13. INVENTORY CONTROL
13.1 Guiding principle: To achieve effective Inventory Control
without affecting the
service level/availability of stock.