Scope or Functions of Material Management
1. Materials planning and control Function: the materials planning and control is performed on the basis of sales forecast and production plans. It involves estimating the individual requirements of parts, preparing materials budget, forecasting the levels of inventories, scheduling the orders and monitoring the performance in relation to production and sales.
2. Purchasing Function: It involves choosing of sources of supply in terms of purchase, purchase orders, follow-up, keeping good relations with suppliers, payments to suppliers, evaluating suppliers.
3. Stores Management Function: It includes physical control on materials such as conservation of materials on stores, timely disposal and efficient handling, maintaining stores records, proper location and stocking.
4. Inventory Control Function: Effective inventory control is a must for effective and efficient running of the production cycle with least interruptions. Inventories refer to those items, which are either stocked for sale or they are in the process of manufacturing or they are in the form of materials, which are yet to be utilized.
5. Other related activities
Keywords: Scope of Material Management, Function of Material Management, Material Management Scope, Material Management Function