· 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.
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.