- low prices- to be lowest – includes transportation: enhances profit
- high inventory turnover- value of inventories to be low in relation to sales. reduces storage costs
- low cost acquisition and possession- reduced handling and storage costs.
- continuity of supply- alternative sources, , captive suppliers, flexible suppliers
- low payroll costs- low operating costs of material management personnel
- favorable supplier relations- supplier development
Secondary objectives of materials management
New materials and products- working closely with design and research departments for development of new materials and products
Economic make-buy- coordinating and assisting other departments in make-buy decisions
Standardization- coordinating with design departments in reducing no. of items.
Product improvement- contribution towards product improvement by giving appropriate inputs and assisting design department.
Interdepartmental harmony- success of materials management department depends on the success of other departments. Hence relations are to be harmonious
Forecasts- forecasts in terms of prices, availability and general market conditions are to be regularly monitored towards taking important business decisions.
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