What do you mean by an integral approach to Materials Management? Explain.
Answer. Materials management is a coordination function responsible for planning and controlling materials flow. Its objectives are:
• Maximize the use of the firm’s resources
• Provide the required level of customer service
An industrial unit should have a centralized authority vested with the responsibility of planning, procuring, preserving, handling, usage and other related aspects. Such a centralized authority wherein, all related activities of materials are combined is called “integrated materials management”.
An integrated or life cycle approach to materials management has the following primary and secondary objectives:
1. Primary objectives
• Low prices
• High Inventory Turnover
• Low Cost acquisition/possession
• Continuity of supply
• Consistency of quality
• Low payroll costs
• Favourable supplier relations
• Development of personnel
• Good records
Secondary Objectives
• Reciprocal relations
• New materials and products
• Economic make or buy
• Standardization
• Product improvement
• Inter-department harmony
• Forecasts
• Acquisitions
Tuesday, June 21, 2011
What do you mean by an integral approach to Materials Management? Explain.
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