“Material Management

and
Inventory Control”
Presented by

Intramantra Global Solution PVT

LTD, Indore
http://intramantra.com
 MATERIAL
MANAGEMENT
 Introduction
 Importance
 Recognition

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 NECESSITY
 Cost of Materials
 Investment
 Bulk Purchasing Scheme
 Contrast : Small Quantity of
Purchasing
 Maintain a balance
 Ensures the continuous

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 DEFINITION
By L. J. De Rose

“ The planning , directing , controlling

and coordination of all those
activities concerned with material
and inventory requirements from
point of their inceptions to their
introduction into the
manufacturing processes”.
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 INTEGRATION
 Planning.

 Scheduling.

 Controlling of materials.
 Facilitating production of goods
and services.
 Their delivery to consumers.

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 What Are The
Benefits ?
 Smooth in flow
 Procurement
 Cost of Materials
 Prevention
 Better Utilization & Control
 Delivery
 Coordination among personnel’s
 Balance

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 CLASSES OF MATERIAL
 Raw materials
 Purchased parts
 In-process parts
 Finished products
 Equipment items
 Supplies

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 MATERIAL
CONTROL
 Exact Concept

 Material Control & Inventory

Control Synonyms ?

 Two Major Aspects

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 SCOPE OF MATERIAL
CONTROL
 Policies and plans
 Techniques

 Economic order quantities

 Physical facilities

 Corrective action

 Storeroom

 Workable organization structure

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 INVENTORY
CONTROL
INTRODUCTION

The inventory control refers to the

control of raw materials and
purchased parts lying in store and
regulation of investment in them .

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 NECESSITY
 Investment
 Major cost leaks
 Beginning of the production to the
end of production
 Man and machine busy
 Stock of various kinds
 Losses
 Profit
 Planning and implementation

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 DEFINITION
“Inventory may be defined as
any idle stock lying with
enterprise for future use” .

“Inventories are the stocks of

various kinds of materials to
keep manufacturing processes in
operation ” .
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 OBJECTIVES OF
INVENTORIES
 To maintain continuity in production.
 To reduce the cost of carrying the
inventories.
 To gain economy in purchasing.
 To fulfill the need for a particular
material at the proper time.
 To make effective use of capital.
 To reduce risk of loss to the firm.
 To minimize administrative expenses
 To reduce clerical work.
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 TYPES OF
INVENTORIES
 Raw materials
 Finished parts

 In-process inventories

 Finished goods

 Supplies

 Tools

 Spares for machinery

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 SPECIAL
FEATURES
 Decouple the customers
and suppliers

 Lot of capital investment

 Reveals Coordination

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 COSTS ASSOCIATED WITH
INVENTORIES

 Procurement costs

 Inventory carrying costs

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EFFECTIVE INVENTORY CONTROL
SYSTEM
 Inventories should be classified
 Sufficient Storage facilities should
be provided
 Standardization of Material
 Fixing of Economic Lot
 Qualified & Experienced staff
should be appointed
 Update records should be
maintained

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