ABSTRACT
A product or job is normally completed through a series or a set of operations, which constitutes a multiple-stage production process. Storage is stock, for example, at the warehouse, temporary stay between workstations, and so on. In general, it is associated with imbalance between the conversion and transportation functions. Transportation or transfer is often called materials handling (MH). Usually all the required operations converting the raw material into the product can not be performed at one workstation; hence, materials handling is necessary. Finished-product inventory absorbs the difference between the individual activities of production and marketing. It enables shipping of products on time according to the customers' orders and wants, while, on the other hand, setting the manufacturing system for its stable and optimum utilisation. The inventories play essential roles as buffer stocks for a smooth, flexible material flow, and to generate time utility.
