Bin cards are used in keeping record of -

Question

Prepp Team · Accepted Answer

Understanding Bin Cards in Material Management

Bin cards are a fundamental tool used in inventory management, specifically for keeping track of materials stored in a warehouse or store.

Let's analyze the given options to understand why "Material storage" is the correct context for using bin cards.

What are Bin Cards?

A bin card is a record kept for each item of material stored in a store or warehouse. It is typically placed near the bin or shelf where the material is kept. It records physical movements of material – receipts and issues.

Analyzing the Options

Option 1: Machine utilization
Machine utilization refers to how effectively machinery is being used, often tracked by metrics like operating hours, downtime, and output. Bin cards are not used for this purpose.
Option 2: Entry/exit time of workers
Tracking the entry and exit time of workers is related to attendance and human resource management. This is typically done using time cards, biometric systems, or attendance registers, not bin cards.
Option 3: Material storage
Bin cards are specifically designed for recording the flow of materials into and out of a storage location (bin or shelf). They show the quantity received, the quantity issued, and the balance of material on hand. This directly relates to material storage management.
Option 4: Man power
Man power refers to the workforce available. Managing manpower involves tracking employees, their skills, tasks, etc., which is part of human resource management. Bin cards have no role in tracking manpower.

Why Bin Cards are Essential for Material Storage

Bin cards provide a real-time, physical record of the quantity of a specific material item in a particular storage location. Key information recorded on a bin card includes:

Item description and code
Bin or location number
Date of receipt or issue
Reference number (like Goods Received Note or Material Requisition Note)
Quantity received
Quantity issued
Balance quantity
Sometimes, minimum and maximum stock levels

This information helps storekeepers keep track of stock levels and facilitates physical verification of inventory. While similar information is often recorded in a Store Ledger in the accounting department, the bin card is maintained by the storekeeper right at the storage location.

Comparison of Options vs. Bin Card Purpose
Area	Tracked By	Bin Card Relevant?
Machine Utilization	Production records, meters	No
Entry/Exit Time of Workers	Time cards, attendance systems	No
Material Storage	Bin cards, store ledgers	Yes
Man Power	HR records, registers	No

Based on the analysis, it is clear that bin cards are used for keeping a record of activities related to material storage.

Revision Table: Key Facts About Bin Cards

Feature	Description
Purpose	Record physical movement of materials in a store
Location	Kept at the bin or storage location
Maintained By	Storekeeper
Information Recorded	Receipts, issues, and balance of material quantities

Additional Information: Bin Cards vs. Store Ledger

It's helpful to understand the difference between a Bin Card and a Store Ledger, although both track material quantities.

Bin Card: Maintained by the storekeeper, at the storage location. Records quantities only. Provides a real-time check on physical stock.
Store Ledger: Maintained by the cost accounting department, usually in the office. Records both quantities and values of materials. Provides a comprehensive record for accounting purposes.

Both records should ideally show the same balance quantity for verification and control purposes in effective material storage and inventory management.