Birla Institute of Technology & Science, Pilani

Work-Integrated Learning Programmes Division

First Semester 20112012

Course Handout

Course No : ET ZC342

Course Title : Materials Management

Instructor : Amit Kumar Singh

Course Description

Integrated materials management, policy aspects, purchasing management, warehousing and storage of
inventory control systems, appraisal and control, just in time (JIT), automation in materials management.

Scope and Objective

At the end of the course, the student will be able to understand

Concepts and procedural aspects of the Integrated Materials Management
Purchasing, stores and warehousing concepts
Inventory management and cross functional areas using both qualitative and quantitative methods
Applications of computers in Materials Management

Prescribed Textbook

T1. Arnold, J.R. Tony & others, Introduction to Materials Management, Pearson Education, 6
th
Edition,
2007.

Reference Books

R1. Sunil Chopra & Peter Meindl, Supply Chain Management: Strategy, Planning and
Operation, Pearson Education, Third Edition 2007.

R2. Robert S. Russell, Bernard W.Taylor-II, Operations Management along the Supply Chain,
Wiley Publications, 6Th Ed

ET ZC342 (Course Handout) First Semester 2011-2012 Page 2

Plan of Self Study

Lecture
No.
Objective Topics Reference to
Text Book
1.
Introduction to Materials
Management
Introduction, Operating Environment, The
concept of supply chain, Material flow and
supply chain metrics
T1- Chapter 1
2.
Production Planning Systems Priority capacity relationship, manufacturing
planning and control system, SOP, MRP and
ERP
T1- Chapter 2
3.
Master Scheduling Relationship to production plan, Developing a
master production schedule, Production
planning, master scheduling and sales
T1- Chapter 3
4.
Material Requirements
Planning
Introduction to MRP, Bills of Material, MRP
process, Using the MRP plan
T1- Chapter 4
5.
Capacity Management Introduction, capacity planning, capacity
requirement planning, capacity available,
capacity required, scheduling orders, making the
plan
T1- Chapter 5
6.
Production Activity Control Introduction, Manufacturing systems, Data
Requirements, Scheduling, Scheduling
techniques, Scheduling bottlenecks, Theory of
constraints and drum buffer rope,
T1- Chapter 6
7.
Purchasing Introduction, objectives, cycle, establishing
specifications, functional specification
description, selecting suppliers, price
determination, Impact of MRP on purchasing
T1- Chapter 7
8 - 10
Forecasting

Introduction, Demand management and
forecasting, characteristics of demand,
principles of forecasting,
forecasting techniques, Tracking the forecast,
P/D Ratio
T1- Chapter 8 &
R1-R2
11-12
Inventory Fundamentals Introduction, Inventory and flow of material,
supply and demand patterns, Functions of
Inventories, Objectives of Inventory
management
Inventory costs, Financial statements and
inventory, Cash flow analysis, Area Inventory
control,
T1- Chapter 9 &
R1-R2
Syllabus for Mid-Semester Test (Closed Book): Topics in Lecture No. 1 to 12
ET ZC342 (Course Handout) First Semester 2011-2012 Page 3

Plan of Self Study

Lecture
No.
Objective Topics Reference to
Text Book
13
Order Quantities

Introduction, SKU, EOQ,
Variations of the EOQ model, Quantity
discounts, POQ
T1- Chapter 10 &
R1-R2
14-15
Independent Demand Ordering
Systems
Introduction, Order point system, Determining
safety stock, Determining service levels
Different forecast and lead time intervals,
Periodic review system, Distribution inventory
T1- Chapter 11 &
R1-R2
16.
Physical Inventory and
Warehouse Management
Introduction, Warehouse management, Physical
control and security, Inventory record accuracy,
T1- Chapter 12
17-18
Physical Distribution Introduction, Physical distribution system,
Legal types of carriage, Transportation cost
elements, Warehousing, Packaging, Material
Handling, Multi ware house systems
T1- Chapter 13
19-20
Products and Processes Need for new products, Product development
principles, Product specification and design,
process design, factors influencing process
design, Process systems, Selecting the process,
CPI,
T1- Chapter 14
21-22
Just-In-Time Manufacturing
and Lean Production
JIT philosophy, Waste, JIT environment,
Manufacturing planning and control in a JIT
environment, Lean production
T1- Chapter 15
23-24
Total Quality Management

Introduction, Quality cost concepts, Process
capability, Process control, Sample Inspection,
SO 9000, ISO 9000 series standards,
Benchmarking
T1- Chapter 16 &
R1-R2
Syllabus for Comprehensive Exam (Open Book): All topics given in Plan of Self Study

Evaluation Scheme:
EC
No.
Evaluation Component &
Type of Examination
Duration Weightage Day, Date, Session, Time
EC-1 Assignment/ Quiz TBA 10% TBA
EC-2 Mid-Semester Test
(Closed Book)*
2 Hours 30% Saturday, 03/09/2011 (FN)*
10 AM 12 Noon
EC-3 Comprehensive Exam
(Open Book)*
3 Hours 60% Saturday, 29/10/2011 (FN)*
9 AM 12 Noon
* Legend:
AN: AfterNoon Session; FN: ForeNoon Session; TBA : To be announced
Closed Book Test: No reference material of any kind will be permitted inside the exam hall.
Open Book Exam: Use of any printed / written reference material (books and notebooks) will be permitted inside the
exam hall. Loose sheets of paper will not be permitted. Computers of any kind will not be allowed inside the exam hall.
Use of calculators will be allowed in all exams. No exchange of any material will be allowed.
Instructor-in-Charge