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DECISION THEOREM

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MANAGEMENT

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  • materials

  • Materials Management

    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

    Materials management is the system for planning and controlling all of the efforts necessary to ensure that the correct quality and quantity of materials are properly specified in a timely manner, are obtained at a reasonable cost and most importantly are available at the point of use when required

  • Four basic needs of Material managementTo have adequate materials on hand when needed

    To pay the lowest possible prices, consistent with quality and value requirement for purchases materials

    To minimize the inventory investment

    To operate efficiently

  • Maximize the use of the firms resourcesManufacturing Planning and Control

    Provide the required level of customer serviceCustomer service means being able to provide the customer the right quality, quantity, time, place, price

  • AIM OF MATERIAL MANAGEMENT To getRight qualityRight quantity of supplies Right timeRight placeRight cost

  • PURPOSE OF MATERIAL MANAGEMENTTo gain economy in purchasingTo satisfy the demand during period of replenishmentTo carry reserve stock to avoid stock outTo stabilize fluctuations in consumptionTo provide reasonable level of client servicesConstruction materials and equipments utilize 70% cost

  • Organization of Materials Management

  • Functions of Materials Management

  • Objectives of Material Management

  • Objectives of Material Management

  • PrimaryRight priceHigh turnoverLow procurement & storage costContinuity of supplyConsistency in qualityGood supplier relationsDevelopment of personnelGood information systemObjective of material managementSecondaryForecastingInter-departmental harmonyProduct improvementStandardizationMake or buy decisionNew materials & productsFavorable reciprocal relationships

  • Primary SecondaryMaterials Requirements Planning (MRP)

    Purchasing

    Inventory Planning and Control

    Ascertaining and Maintaining the Flow and Supply of Materials

    Quality Control of MaterialsStandardization and Simplification

    Make and Buy decisions

    Coding and Classification of Materials

    Forecasting and Planning

  • Government

    Economy

    Competition

    QualityOrder qualifiersOrder winners


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