- By nature of item: This is coding of items according to their inherent characteristics. Similar items into a series of main groups then each group is further subdivided into subgroups or sections.
- By the end use of the item: This is coding of items according to or to correspond with the purpose for which the items will eventually be used.
- By the location of the item: This is the coding of material on the basis of the location within the store where the materials are to be found e.g. the gangways, shelves, pallets
- By source of supply: Here materials are coded according to the supplier or origin. If there are three suppliers the coding would be 1, 2, 3 or A,B,C. Coding of materials may be in accordance to local or international suppliers.
- By the customer who will buy the end item: Materials are coded according to the final consumer who will eventually buy the end product e.g. individual consumer, industrial consumer, institutional consumer or resell government bodies.
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