Inventory control & Cost Reduction techniques is an important part of materials management which helps to reduce overall cost of Inventory control by applying various basic as well as innovative techniques such as Inventory turnover ratio, Standardization and codification, Value Engineering and Value Analysis. Standardization Also called Industrial Standardisation This is a process of establishing
Selective Inventory Control is an essential part of Materials Management. Selective control is emphasizes on variations in methods of control from item to item based on selective basis. We can not apply uniform control since it’s expensive and gives diffused effect. For this purpose we can use some criterion such as lead time, consumption, criticality, cost of
There are various costs associated with Inventory Management which affects on overall process of materials management. We can describe all these types/classifications of costs involved in inventory with suitable examples. Generally we categorize into three types – Purchase cost, Ordering cost and carrying costs. Costs Associated with Inventory Management 1 Purchase Costs 2 Ordering costs 3 Carrying
This article focuses on need of Inventory Management, their importance in organization to manage resources and smooth flow of production to fulfill demand. We have tried to cover all points necessary to elaborate need of inventory with suitable examples. To meet variation in product demand To maintain independence operations To allow flexibility in production scheduling
Materials Management has an important role in Production management or supply chain management. Materials management mainly focuses on management of raw material or components required for continuous production. Here you can find Materials Management Multiple Choice Questions with answers. 1. Business cycle, price trends, National Economy are ……………. a. Micro Factors b. Macro Factors c.
The evolution or History of Materials Management starts with the US and World War I. Before 1st World war, people were unaware about the importance of Materials Management, Inventory Control and Supply chain Management. The concept of Material Management was strengthen with the research papers published by Harvard University. The Abstract / summary of evolution of