Wednesday, July 19, 2017

Inventory and material management project at KCP sugars

Materials management is a 'womb to tomb' concept, is so all encompassing a multi-role in its functional activities that it would be less difficult to describe it than to define it.

"Materials management is that coordinated function responsible to plan for, acquire store, move and control materials (including final products), to optimize usage of facilities, personnel, capital funds and to provide service to the user in line with the organizational aims". "The Planning, Organizing, Staffing, Directing and controlling the management of the 'Resource' called 'Materials', as distinct from other well understood resources like Money and Men".

The Materials management includes the primary responsibilities which are generally found in the purchasing department, plus all other major procurement responsibilities, including inventory management, traffic, receiving, warehousing, surplus and salvage.

Concept of Inventory Management
The dictionary meaning of "Inventory" is “a detailed list-stock of goods in this". A practical definition from the material management angle would be "Items of stores or materials kept in stock to meet future demands of production, repairs, maintenance, construction etc". Since the materials held in the inventory are idle resource, another definition of inventory would be "an idle resource of any kind which has an economic value".
Fred Hans man defined inventory as "An idle resource of any kind, provided that such resource has economic value".

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