DefinitionMaterial management is the planning ,

directing , controlling and coordinating those activities which are concerned with material and inventory.

It deals in material quality and quantityControls the flow of material in relation to

changes in variables like demand , price.

Objectives Of Material Mgmt.Material SelectionLow operating cost (without affecting the quality)Receiving and controlling the material safely and

in good conditionIssue material upon receipt of appropriate

authorityIdentification of surplus stocks and taking

appropriate measures to reduce itTo minimize storage and control costsBy minimizing waste while handling of materialTo purchase items of best quality

Duties Of Material ManagerPurchasing of raw material

- Selection of suppliers

- Delivery of material on time

- To look for new products• Production control

- Proper schedules for production

- Time control• Inventory and stores control

- Record of inventory• Traffic (shipment of RM & FG )

- Selection of carriers

- Developing technique to reduce transportation cost• Physical distribution ( final goods to customers )

Factors responsible for providing economy in Material Mgmt.

Volume of purchasePlant near the source of materialFluctuations in price of materialDesign and engineering of the product ( design

of the product should be simple so that Design of the equipmentInspection of the material before placing the

order

Importance of Material Mgmt.Ensure regular supply of materialMinimizes wasteTransportation costs associated with material

are checkedShortages can be eliminatedBetter utilization of resourcesTimely supply of raw material