Table of Contents Page

Course introduction i
Unit One- Background of materials mgt 1
Section-1 Meaning and significance 2
Section-2 Objectives of materials management 3
Section-3 Problems of materials management 4
Section-4 Organization of materials mgt 4
Summary 6
Unit Two- Demand forecasting 7
Section-1 Types of for casting 7
Section-2 Forecast errors 11
Section-3 Measures of forecasting errors 11
Summary 17
Unit Three- Purchasing 19
Section-1 Types of purchasing in Business 19
Section-2 Purchasing roles in business 20
Summary 30
Unit Four- Out sourcing and make-or-buy decisions 31
Section-1 Strategic Decisions 32
Section- 2 Tactical Decisions 34
Section-3 Factors influencing make-up-buy decisions 34
Section-4 Precautions in developing costs 39
Section-5 The volatile nature of the make-or-buy situation 46
Unit Five- Summary 50
Section-1 Inventory control models 51
Section-2 The meaning of inventory control 52
Section-3 Classification of inventory items 53
Section-4 Functional role of inventory 54
Section-5 Reasons for carrying inventory 55
Section-6 Inventory control approaches (systems) 63
Summary 77
Unit Six- Receiving, Storage and Handling of materials 78
Section-1 Receiving, Storage, And Handing of Materials 78
Section-2 Stock tracking 79
Section-3 Methods of stock tracking 80
Section-4 Stock certificate 80
Section-5 Disposal of surplus, scrap & waste 81
Section-6 Storage 82
Section-7 Materials Handing 83
Section-8 Materials Handing principles 84
Summary 88
Unit Seven- Project purchases 89
Section-1 What is project buying 89
Section-2 A to Z consequences of delays 90
Section-3 Equipment Acquisition A to Z differences 91
Section-4 A to Z influencing variables 93
Section-5 Capital investment decisions 94
Section-6 Life cycle costing 94
Section-7 Planning for project buying 95
Section-8 Bid evaluation criteria 95
Summary 98