Variety Reduction

VARIETY REDUCTION

·         is nothing but standardization of items/materials.

·         The basic purpose of standardization is to eliminate diversity among items/materials that serve the same purpose and to attain a high degree of uniformity in the manufacture. 

·         is a rationalization of the number of items to be stocked. It achieves by elimination of non-standard and non-rationalized sizes/designs whose demand is very small.

·         enables few items will be purchased in large quantities.

·         It is an essential requirement to any modern mass production economy such as Indian Railways.

ADVANTAGES:

1.       Reducing the Unit cost, because few items will be purchased in large quantities.

2.       Reducing the inventory carrying cost.

3.       Will root out the unneeded and duplicate items.

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