Objectives of Material Management
Primary Objectives
- Buying the best item at the lowest cost
- Reduction in inventory cost and High inventory turnover
- Maintaining the flow of production
- Maintaining the consistency of quality
- Optimization of acquisition and possession, resulting in lower cost
- Cordial relationship with suppliers
- Maintaining good records
- Contribution towards competitiveness
- Personnel development
Secondary Objectives
- Promotion of standardization with suppliers
- Development of reciprocal relations with customers
- Committees to decide on economic make –or- buy decisions
- Development of inter departmental relationships
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