Material Control and its Requirements
“ ‘Material Control’ may be defined as the regulation of the procedures for requisitioning, buying, receiving, storing, handling and usage of materials”.
The main requirements of a system of material control are:
- Planning and fixation of definite responsibility for each function of material.
- Co-ordination between departments responsible for requisitioning, purchasing, receiving, inspecting, storing and utilizing the materials,
- Centralization on purchases.
- Use of material purchase budget and material requirement budget.
- Use of standard and uniform forms, and
- Proper system of stock control.
For proper application of the material control the following steps are necessary.
- Purchasing of materials
- Receiving and inspecting of materials
- Storing of materials
- Pricing material Issues
- Accounting materials losses.
- Keeping physical and perpetual inventory