2. BY DHIRENDER SINGH B.TECH [ME]

4. “MATERIAL MANAGEMENT IS THE PLANNING,DIRECTING,CONTROLLING COORDINATION OF ALL THOSE ACTIVITIES CONCERNED WITH MATERIAL AND INVENTORY REQIREMENTS,FROM THE POINT OF THEIR INCPECTION TO THEIR INTRODUCTION INTO MANUFACTURING PROCESS”

5. RECEIVING PURCHASE REQUISITIONS EXPLORING THE SOURCES OF SUPPLY AND CHOOSING THE SUPPLIER PLACING ORDER FOLLOW UP

6. RECIEPT OF MATERIALS INSPECTIONS OF MATERIALS CHECKING

7.  DEFINITION:  PROCESS OF DECIDING WHAT AND HOW MUCH OF VARIOUS ITEMS ARE KEPT IN STOCK.  FUNCTIONS :  DETERMINE ITEM TO BE STOCKED.  KEEP SUITABLE RECORDS.  WEED OUT OBSOLETE ITEMS.  DETERMINE WHEN AND HOW MUCH TO STOCK AND REPLENISH.

8. BY LEAD TIME IS MEANT THE TIME THAT LAPSES BETWEEN THE RAISING OF THE INDENT BY THE STORES AND THE RECEIPT OF MATERIALS BY THEM

11.  MINIMUM INVENTORY LEVEL  [RECORDING LEVEL] - [NORMAL CONSUMPTION PER PERIOD * AVG DELIVERY PERIOD]  MAXIMUM INVENTORY LEVEL  [RECORDING LEVEL + RECORDING LEVEL]  AVERAGE INVENTORY LEVEL  [MAX +MIN]/2  REORDER LEVEL  [MAXIMUM CONSUMPTION DURING PERIOD] * [MAX PERIOD REQUIRED FOR DELIVERY]

12.  REPRESENTS THE QUANTITY OF AN ITEM WHICH IS MOST ECONOMICAL TO ORDER WHEN FRESH SUPPLY ARE REQUIRED.  IT AIMS TOTAL OF ORDERING AND INVENTORY CARRYING COST WILL BE MINIMUM.  CARRYING COST INVENTORIES CONSIST OF RENT OF STORAGE SPACE,COST OF INSURANCE AND MAINTAINANCE.

14.  REQUIRES A STOCK RECORD OR REGISTER.  REQUISITIONS AND DISBURSEMENTS ARE RECORDED.  PROVIDES AN UPTO DATE RECORD OF INVENTORIES TO REDUCE MISAPPROPIATIONS.

15.  NO NEED OF CLOSING BUSINESS FOR STOCK CHECKING.  CONTINUOS WATCH IS MAINTAINED.  BALANCES AND ADJUST BLOCK STOCK AND ACTUAL STOCK IMMEDIATELY.  ELIMINATES,THE ELABORATED COSTLY PERIODICAL STOCK CHECKING.

16.  REQUIRES AN OCCASIONAL COUNT OF STOCK TO DETERMINE INVENTORY BALANCE ON HAND.  THE WAGE OF STORES IS DETERMINE BY ADDING CURRENT RECEIPTS TO THE OLD BALANCE AND SUBTRACTINGH THE NEW BALANCE ON HAND.

17.  FIXED ORDER QUANTITY SYSTEM  REPLENISHMENT SYSTEM.  OPTIONAL OR MODIFIED RPLENISHMENT SYSTEMS

18.  ITEMS ARE DIVIDED INTO 3 CATEGORIES.  CATEGORY A (MAX COST, MINIMUM CONTRIBUTION TO NUMBER OF ITEMS)  CATEGORY C (MINIMUM COST AND MAXIMUM CONTRIBUTION TO NUMBER OF ITEMS.)  CATEGORY B (IN BETWEEN A AND C)

19.  IN THIS SYSTEM PURCHASE OF MATERIAL OR GOODS IN SUCH A WAY THAT DELIVERY OF PURCHASED ITEMS IS ASSUMED BEFORE THEIR USE OF DEMAND.  TOO MUCH CARRYING COST IS THERE.  TRUST ON SUPPLIERS INCREASE.  IT INCLUDES PURCHASE COSTS AND STOCKOUT COST SO QUITE A REALISTIC APPROACH THAN EOQ MODEL.

20. GROUP% OF ITEMS% OF COSTS A10%70% B25%20% C65%10%