Objectives Of Material Management Pdf

The materials manager should obtain the materials needed at the lowest cost possible.

Objectives of material management pdf. The objective of materials management is to maximize the use of the firms resources by ensuring adequate supply of materials for production process and also minimizing cost of holding excessive inventories. Right quantity of supplies 3. This objective when achieved leads to cost reduction and improve profitability theoretical framework material management is a tool to. They are meant for furthering objectives of the enterprise as a whole.

Materials management contributes to survival and profits of an enterprise by providing adequate supply of materials at the lowest possible costs. Material management materials management is simply the process by which an organization is supplied with thegoods and services that it needs to achieve its objectives of buying storage and movementof materials. Or material management is a scientific technique concerned with planning organizing control of flow of materials from their initial purchase to destination. Primary objectives and secondary objectives.

Cavinato 1994 states that the objectives of a material management system should include lowest final cost optimum quality assurance of supply and lowest administrative costs. The right quality 2. Furnishing the appropriate material of true quality. If materials department succeeds in reducing the price of items it buys it contributes in not only reducing the operating cost but also in enhancing.

1 2 objectives of materials management materials management s considerable effect on profits demands that its objectives be derived from the general business objectives maintaining competitiveness and satisfactory profitability. The objectives of materials management cannot be treated in isolation. Objectives of materials management. Materials management is a process through which a firm or company is supplied with goods and services which it requires for succeeding in its goals of buying movement of materials and storing the parameters related to materials management are as follows.

The objectives of material management can be classified into two categories viz. Aim of material management to get 1. Materials management help in achieving its objectives helping organization in. The following are the primary objectives.

Materials management aims at reducing the cost of production and distribution so as to help the whole of the enterprise.