Surplus means such items which are more than the required quantity and cannot be consumed during a specific time for certain reasons. These are the materials which can be consumed at some future time or that which is no longer required for the job, for which it was purchased.
Surplus materials arise from many reasons:
- When manufacturing operations are suddenly curtailed on account of design improvement etc.
- When the project has been completed.
- These stores may be in excess of the normal manufacturing and repairing requirements to the job concerned.
- Excess purchase of stores due to wrong judgment at the procurement stage.
- When there is a change in the specification of size.