Inventory Decisions
ABC (Always Better Control) Analysis – Class A – constitutes 10% of total items and accounts for 75% of total money spend on inventories. Class...
Material Management
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Basic EOQ
Typical assumptions made Annual demand (D), carrying cost (C) and Ordering cost (S) can be estimated Average inventory level is the fixed order quantity (Q)...
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What are Inventory Costs?
Costs associated with ordering too much (represented by carrying costs) Costs associated with ordering too little (represented by ordering costs) These costs are opposing costs,...
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Objectives of Inventory Control
Protection against fluctuation in demand Better use of 5 M’s Protection against fluctuation in output Control of stock volume Protecting against quality problems To ensure...
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Possible Reasons for Low Material Production
Lack of integrated system approach – different functional managers tends to look at materials related decisions from their own narrow segmented sub system view point....
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Objectives of Material Management
Primary objective low prices- to be lowest – includes transportation: enhances profit high inventory turnover- value of inventories to be low in relation to sales....
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Production Planning System
PRODUCTION PLANNING SYSTEM A production planning system includes an equipment information data base, a product information data base, a quality historical information data base,...
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Aim of Material Management
Aim of Material Management To get The right quality Right quantity of supplies At the right time At the right place For the right...
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Functions Of Material Management
Functions Of Material Management Material Planning Purchasing Receiving Stores Inventory control Waste management
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Steps of Material Purchase Planning
It consists of following steps – i. Processing the requisition The departments of co. communicate to the purchase dept. their requirements for various items by...