 Purpose of Material Management
- To gain economy in purchasing
- To satisfy the demand during period of replenishment
- To carry reserve stock to avoid stock out
- To stabilize fluctuations in consumption
- To provide reasonable level of client services
| Primary | Secondary |
| Right price | Forecasting |
| High turnover | Inter-departmental harmony |
| Low procurement | Product improvement |
| & storage cost | Standardization |
| Continuity of supply | Make or buy decision |
| Consistency in quality | New Materials & products |
| Good supplier relations | Favorable reciprocal relationships |
| Development of personnel | |
| Good information system |
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