1. On a personal visit to the factory it was observed that the stores department is not having adequate space, which is not good for the company. It is not proper storing arrangement is there production suffers.
2. Stocking arrangement is not so much modernized also, modern techniques are scientific and they give better results.
3. Various cost which directly affect the materials management is ordering costs, inventory carrying costs and other relevant costs are being overlooked.
4. The company is giving no proper attention towards the techniques of economic order quality for placing order.
5. The company has met introduced budgeted techniques as a method of internal control. Accounting standard if there for preparing the purchase budget.