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MATERIAL MANAGEMENT
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2. DEFINIION
IT IS THE CONCEPT OF MANAGEMENT WHICH IS CONCERNED WITH FLOW OF MATERIALS IN AN ORGANISATION BY USING FUNCTIONS LIKE PURCHASING,STORING,MOVING,DISTRIBUTING,PRODUCTION,DISPATCHING.

3. INVENTORY MANAGEMENT Meaning Types of inventory Raw material inventory
Semi finished material inventory
Finished material inventory
Tools inventory
Machinery spares inventory
Supplies inventory
Standerd parts inventory

4. FUNCTIONS OF INVENTORY MNAGENMENT
Ensure availability of engineering
Proper purchasing guidelines
Supply of material whenever required
Smooth functioning of production system
Cost minimization
Reduce time to market
Improves customer satisfaction
Prevents stock outs

5. OBJECTIVES OF INVENTORY MANAGEMENT
TO streamline decision making
To purchase material in minimum cost
To purchase material in right quantity
To purchase material at right cost
To provide sufficient storage space
To classify material on various parameters
To avoid delay in material issue
To reduce inventory costs

6. ABC Analysis
A type materials: Materials with 10 % in quantity but cost contribution is 90%.
C type materials: Materials with 70 % in quantity but cost contribution is 10%.
B Type materials: Medium valued and number lies between A and C.

7. EOQ EOQ: It means the Economic Order Quantity
The size of an order that minimizes the total inventory cost is know as EOQ.

8. METHODS OF PURCHASING MARKET PURCHASING PURCHASING FOR SPECIFIC PERIOD
CENTRALISED PURCHASING
RATE COTRACT PURCHASING
THROUGH DIRECTOR GENERAL OF SUPPLIES AND DISPOSALS
PURCHASING ACCORDING TO REQUIREMENT

9. Principles of purchasing
Right time
Right price
Right source
Right quantity
Right quality
Right transport
Right procedure
Right contact

10. Procedure for purchasing
Management should decide the method of purchasing
Purchasing department should be formed
Inspection staff must see that the material supplied is of good quality.
When contracts are given favorable terms can be detected
Saving can be effected by arranging standardized purchasing

11. MODERN TECHNIQUES OF MATERIAL MANAGEMENT
JUST IN TIME SYSTEM(JIT)
SYSTEM APPLICATIONS AND PRODUCTS(SAP)
ENTERPRISE RESOURSE PLANNING(ERP)
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