Prepared by - Ojhal mishra

Definition – It is concerned with planning ,organizing

and controlling the flow of materials from their initial
purchase through internal operations to the service
point through distribution .
AIM OF MATERIAL MANAGEMENT
 The right quality
 Right quantity of supplies
 At the Right time
 At the Right place
 For the Right cost
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 consumptions
 To provide reasonable level of client services
Advantages of MM
 Improved accountability
 Better coordination
 Better performance
 Analysis of data
 Better team work
Objective of material management
Primary
 Right price
 High inventory turnover
 Low procurement & storage cost
 Continuity of supply
 Consistency in quality
 Cordial relationship with supplier
 Development of vendors
 Good information systems
 Low storage cost
 Good records

Secondary
 Economic forecasting
 Inter-departmental harmony
 Product improvement
 Standardization
 Make or buy decision
Store management
Introduction

 Store management is “to receive materials, to protect

them while in storage from damage & unauthorized
removal, to issue the material in the right quantities ,
at the right time to the right place and to provide these
service promptly and at least cost” .
Functions of store
management
1. Receipt
2. Storage
3. Retrieval
4. ISSUE
5. Records
6. Housekeeping
7. Control
8. Surplus management
9. Verification & packaging
10. Interaction & coordination
Types of stores
1. Centralised – centralised storage means a single store
for the whole organization
2. Centralised storekeeping ensures better space, lesser
staff, saving in storage costs and appointment of
experts for handling storage problem. It further
ensures continuous stock checking.
Types of stores
 Decentralized – decentralized storage means
independent small attached to various departments .
 Decentralized stores involve lesser cost and time in
moving bulky materials to distant departments and are
helpful in avoiding overcrowding in central store .
Issue of material

 FIFO
 LIFO
 HIFO
 Average cost method
 Replacement price method
 Standard price method
 Actual price method
 Inflated price method
Thank you