Explain its pros and cons of three bin system

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3 advantages and disadvantages of using Bin cards

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Advantages of Bin Cards :

(i) There would be less chances of mistakes being made as entries will be made at the same time as goods are received or issued by the person actually handling the materials.

(ii) Control over stock can be more effective, in as much as comparison of the actual quantity in hand at any time with the book balance is possible.

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(iii) Identification of the different items of materials is facilitated by reference to the Bin Card the bin or storage receptacle.

Disadvantages of Bin Cards :

(i) Store records are dispersed over a wide area.

(ii) The cards are liable to be smeared with dirt and grease because of proximity to material and also because of handling materials.

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(iii) People handling materials are not ordinarily suitable for the clerical work involved in writing Bin Cards.

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