2. Definition
Material management is the planning , directing ,
controlling and coordinating those activities which
are concerned with material and inventory.
It deals in material quality and quantity
Controls the flow of material in relation to changes in
variables like demand , price.

3. Objectives Of Material Mgmt.
Material Selection
Low operating cost (without affecting the quality)
Receiving and controlling the material safely and in
good condition
Issue material upon receipt of appropriate authority
Identification of surplus stocks and taking
appropriate measures to reduce it
To minimize storage and control costs
By minimizing waste while handling of material
To purchase items of best quality

4. Duties Of Material Manager
Purchasing of raw material
- Selection of suppliers
- Delivery of material on time
- To look for new products
• Production control
- Proper schedules for production
- Time control
• Inventory and stores control
- Record of inventory
• Traffic (shipment of RM & FG )
- Selection of carriers
- Developing technique to reduce transportation cost
• Physical distribution ( final goods to customers )

5. Factors responsible for providing
economy in Material Mgmt.
Volume of purchase
Plant near the source of material
Fluctuations in price of material
Design and engineering of the product ( design of the
product should be simple so that
Design of the equipment
Inspection of the material before placing the order

6. Importance of Material Mgmt.
Ensure regular supply of material
Minimizes waste
Transportation costs associated with material are
checked
Shortages can be eliminated
Better utilization of resources
Timely supply of raw material

7. Importance of Material Mgmt.
Ensure regular supply of material
Minimizes waste
Transportation costs associated with material are
checked
Shortages can be eliminated
Better utilization of resources
Timely supply of raw material