Material Planning And Control
Material planning is a scientific technique of determining in advance the requirements of raw materials, ancillary parts and components, spares etc. as directed by the production programme. It is a subsystem in the overall planning activity. There are many factors, which influence the activity of material planning. These factors can be classified as macro and micro systems.
1. Macro factors: Some of the micro factors which affect material planning, are price trends, business cycles Govt. import policy etc.
2. Micro factors: Some of the micro factors that affect material planning are plant capacity utilization, rejection rates, lead times, inventory levels, working capital, delegation of powers and communication.