Scope of Materials Management
Materials management embraces all functions concerning planning purchasing production control stores traffic and physical distribution.
The main areas of materials management function are as under:
1. Planning Function : The planning part of the materials management deals with the followings issues.
a.Translation of the sales projection into long term requirements of materials.
b.On the basis of updated production plan adjust the latest sales demand and the requirements of materials accordingly.
c. To arrange the facilities required for the materials management.
2. Production Control : This is done by
a. Determining requirements of materials and parts to be purchased and manufactured.
b. Schedules of production and purchasing processes of parts and materials.
c. Issue work order to manufacturing department and purchase order to suppliers.
d. To dispatch the materials to the production departments.
3. Purchasing: Purchasing department procedures the materials of desired quality in time to meet the production specifications at the lowest possible cost. The main activities of purchasing are:
a. Selection of acceptable suppliers and issue of purchase order.
b. To expedite the delivery of materials to meet the inventory requirements.
c. To look for new materials and suppliers that can contribute to company profits.