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Materials management can deal with campus planningand building
design for the movement of materials, or
with logistics that deal with the tangible components ofa supply
chain . Specifically, this covers the acquisition ofspare parts and
replacements, quality control ofpurchasing and ordering such parts,
and the standardsinvolved in ordering, shipping, and warehousing
the saidparts.
Materials management
http://en.wikipedia.org/wiki/Logisticshttp://en.wikipedia.org/wiki/Supply_chainhttp://en.wikipedia.org/wiki/Quality_controlhttp://en.wikipedia.org/wiki/Quality_controlhttp://en.wikipedia.org/wiki/Supply_chainhttp://en.wikipedia.org/wiki/Logistics
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Definition It is concerned with planning, organizing and
controlling the flow of materials from their initialpurchase
through internal operations to the servicepoint through
distribution.
OR
Material management is a scientific technique,concerned with
Planning, Organizing &Control of flowof materials, from their
initial purchase to destination.
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AIM OF MATERIAL MANAGEMENT
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
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PURPOSE OF MATERIAL MANAGEMENT To gain economy in purchasing To
satisfy the demand during period of replenishment To carry reserve
stock to avoid stock out To stabilize fluctuations in consumption
To provide reasonable level of client services
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Primary Right price High turnover Low procurement & storage
cost
Continuity of supply Consistency in quality Good
supplierrelations Development ofpersonnel Good
informationsystem
Objective of material managemenSecondary Forecasting
Inter-departmentalharmony Product improvement Standardization Make
or buy decision New materials & products Favorable
reciprocal
relationships
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Four basic needs of Materialmanagement
1. To have adequate materials on hand when needed 2. To pay the
lowest possible prices, consistent with
quality and value requirement for purchases
materials
3. To minimize the inventory investment
4. To operate efficiently
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Procurement cycle Review selection Determine needed quantities
Reconcile needs & funds Choose procurement method Select
suppliers Specify contract terms Monitor order status Receipt &
inspection
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Points to remember while purchasing Proper specification Invite
quotations from reputed firms Comparison of offers based on basic
price, freight & insurance,
taxes and levies Quantity & payment discounts
Payment terms Delivery period, guarantee Vendor reputation
(reliability, technical capabilities, Convenience, Availability,
after-
sales service, sales assistance) Short listing for better
negotiation terms Seek order acknowledgement
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Functions of material management
