Description
Purchasing and inventory control are the key elements for efficient material management. Decisions on how much to buy and when to buy cannot be view in isolation; as is being done in many quarters. The provision of safety stock on the other hand is a kind of insurance and is largely influenced by the lead time required to procure the materials.
Important Elements in Raw
Material Management
Purchasing and inventory control are the key elements for
efcient material management. Decisions on how much to
buy and when to buy cannot be view in isolation as is being
done in many !uarters. "he provision of safety stock on the
other hand is a kind of insurance and is largely in#uenced by
the lead time re!uired to procure the materials. It is obvious
that any improvement in the lead time would necessitate a
decrease in the volume of safety stock and thereby reduce
overall capital lock$up in inventory %&aeed' ())*+.
,nother important issue in material management is the
matter of maintaining good systems and procedures and this
calls for strict discipline in documentation. "his implies that
all related paper work are completed in time so as to
generate the basic data and compile timely and reliable
information for planning' follow$up and control.
"his seems mandatory' be it manual or computeri-ed system.
"he success of the system calls for cooperation and
understanding of all that are concerned for providing timely'
the necessary data in order to ensure that the information
processed for action re#ects the realities of the situation.
,ccording to .asiri' Davoudpour and /arimi %()0)+ resource
planning and timely information for decision' action and
control is possible today with the support of a computer
system with the relevant application package and software.
,n integrated material management system with electronic
data processing support avoids many of the common volume
data in a short time span and checking the actual against the
preset norms' so as to take !uick preventive and1or corrective
actions.
doc_859295938.docx
Purchasing and inventory control are the key elements for efficient material management. Decisions on how much to buy and when to buy cannot be view in isolation; as is being done in many quarters. The provision of safety stock on the other hand is a kind of insurance and is largely influenced by the lead time required to procure the materials.
Important Elements in Raw
Material Management
Purchasing and inventory control are the key elements for
efcient material management. Decisions on how much to
buy and when to buy cannot be view in isolation as is being
done in many !uarters. "he provision of safety stock on the
other hand is a kind of insurance and is largely in#uenced by
the lead time re!uired to procure the materials. It is obvious
that any improvement in the lead time would necessitate a
decrease in the volume of safety stock and thereby reduce
overall capital lock$up in inventory %&aeed' ())*+.
,nother important issue in material management is the
matter of maintaining good systems and procedures and this
calls for strict discipline in documentation. "his implies that
all related paper work are completed in time so as to
generate the basic data and compile timely and reliable
information for planning' follow$up and control.
"his seems mandatory' be it manual or computeri-ed system.
"he success of the system calls for cooperation and
understanding of all that are concerned for providing timely'
the necessary data in order to ensure that the information
processed for action re#ects the realities of the situation.
,ccording to .asiri' Davoudpour and /arimi %()0)+ resource
planning and timely information for decision' action and
control is possible today with the support of a computer
system with the relevant application package and software.
,n integrated material management system with electronic
data processing support avoids many of the common volume
data in a short time span and checking the actual against the
preset norms' so as to take !uick preventive and1or corrective
actions.
doc_859295938.docx