Answer:
Codification of materials can also be termed as the identification of materials. This deals with uniquely identifying each item in the inventory. It is useful in requisitioning items or the operational departments, in placing of orders by the purchase department, in receiving and expediting the items on receipt from the supplier, in having a unique record of each of the items in stores and in work-in-process or in warehouse so as to facilitate the control over the inventory levels, and also in having a good control over the loss, deterioration, obsolescence, non-movement, or pilferage of the items in the inventory. Unique identification of the materials – whether they are raw materials, work-in-process or finished goods – is the first step towards a good materials management system. Without it, the control over inventory by rigorous exercises such as inventory techniques is not very effective. Without it, confusion might prevail in the operational departments. Moreover for a good quality control system a unique identification is a pre-requisite. There are many other advantages such as variety reduction and standardization etc.
Explanation:
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