Professional Documents
Culture Documents
Arshpreet
Aman
Hosp.2nd
yr
UIAMS
Definition
It is concerned with planning, organizing and
controlling the flow of materials from their initial
purchase through internal operations to the service
point through distribution.
OR
Material management is a scientific technique,
concerned with Planning, Organizing &Control of flow
of materials, from their initial purchase to destination.
To get
1. The Right quality
2. Right quantity of supplies
3. At the Right time
4. At the Right place
5. For the Right cost
replenishment
To carry reserve stock to avoid stock out
To provide
services
PRIMARY OBJECTIVES
SECONDARY OBJECTIVES
PRIMARY OBJECTIVES
Buying the best item at the lowest cost
Reduction in inventory cost and High inventory
turnover
Maintaining the flow of production
Maintaining the consistency of quality
Optimisation of acquisition and possession,
resulting in lower cost
Cordial relationship with suppliers
Maintaining good records
Contribution towards competitiveness
Selection
of appropriate vendors
Land and storage cost increase
Difficulty in forecasting demand accurately
Scarce capital for investment in materials
inventory
Diversification of product lines
Optimising time and quantity for products
Management of information
Intermediate.
About 20 % of materials consume 20 % of resources
Must have:
Moderate control
Purchase based on rigid requirements
Reasonably strict watch & control
Moderate safety stocks
Managed by middle level management