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.