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Material Management Paper

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Material management

Summary:

Material management department is responsible for planning, acquiring, storing, moving, and

controlling flow of materials needed assembly or direct customer use in an organization.

The demand for material management was initially recognized in manufacturing enterprises, and
as a result, serving organizations and non-trading organizations such as hospitals, schools,
universities, and colleges noticed the need for this control as well. Every business uses a variety
of resources, all of which must be purchased, stored, and used correctly.

Important components of material management

Strategic sourcing and purchasing; this comprise of procurement decisions, which include the
choosing of vendors and supplies, as well as selecting the right materials in the right quantity, for
the correct time.

Inventory management; stock control organization from manufacture to distribution, and vice
versa, from warehouses to sales locations.

Material requirement planning; is the process of planning, scheduling, and inventory control
that determines the manufacture processes in terms of resources needed and product production.

Capacity planning; is the quantity of items that a firm needs to meet client demand. The
organization's design capacity, in turn, is the quantity of product demand it can meet.

Process planning; is the application of technology to aid in the creation of products and the
arrangements necessary to meet the organization's demands.

Demand management and forecasting; is a way for forecasting the demand that an
organization could be interested in meeting. Forecasting is a set of techniques for predicting the
demands that a business will face over the course of a manufacturing cycle.

Sales and operation planning; is the coordination of all manufacturing operations in order to
manage the supply chain effectively.
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Risk management; is the management of manufacturing processes through the management of

static and dynamic resources to ensure that a company can sustain profitability rather than
engage in activities that increase production costs and inventory holding.

Supply chain quantity; is the removal of hazards that would otherwise result in unpredictably
broken production lines, affecting the company's performance.

Physical distribution management; is the optimization of all end-to-end processes, such as

transportation, packing, customer service, and inventory control, after the production of end-to-
end processes.

Supply chain resilience; is the supply chain's ability to cope with large shocks while
maintaining output and customer service.

Key issues in material management

Supply discontinuity, a breakdown in flow of information, demand and supply ambiguity,

inaccurate estimates, reduced inventory turnovers, material buying depending on type of
substance, inventory control, excess and outdated inventory, rigid capacity, on-time deliveries
of supplies, inventory assorted variety and classification method, inventory holding cost, and
poor information are just a few of the challenges that material management faces in a complex
supply network (Crew et al.,2020).

Evolution of technologies in materials management

Materials management can be traced all the way back to America during World War I. World
Prior to War I, few people understood the importance of Materials Management, and Inventory
Material management as a discipline progressed slowly compared to development and marketing
(Sekaran & Bougie,2019). Although some components of the role are performed at all stages of
companies, material handling as a field of study and a vital component of company performance
is a relatively modern concept with roots in us economy.
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Over the previous three centuries, human civilization has advanced from a resource handicraft
economy to today’s modern service economy. The underlying process of goods exchange has
evolved over time. It has grown into a complex industrial manufacturing and distribution system.

During and during World War I, the supply of many manufacturing companies was disrupted.
During the war, both the shortages and the accumulation of massive stocks made us aware of the
inventory model (Brunner & Rechberger,2016). As a result of better technology and economic
success, the focus shifted to mass production and trading with the start of the industrial
revolution. There was a lot of demand for resources (Pirouz et al.,2020). The rise in population,
paired with the rise in income, reduced need for a large range of commodities.

Conclusion

Materials management employs inventories for planning to ensure that materials are available
when they are needed to satisfy production deadlines. Logistic, stock levels, material quality,
pricing, and other factors are all part of material planning. This necessitates a detailed breakdown
of all procedures and criteria. Since the industrialization, material handling was an important
aspect of industrial operations, and it is now employed by modern businesses in a variety of
industries to avoid production interruptions. Material managers must work with such a supply
chain that supplies are supplied where they can be needed at the correct time, as they are linked
to other business sectors such as buying and warehousing.

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References

Sekaran, U., & Bougie, R. (2019). Research methods for business: A skill building approach.

john wiley & sons.

Brunner, P. H., & Rechberger, H. (2016). Handbook of material flow analysis: For e

De Vries, J., & Huijsman, R. (2017). Supply chain management in health services: an

overview. Supply Chain Management: An International Journal.

Crew, E. C., Baron, K. G., Grandner, M. A., Ievers-Landis, C. E., McCrae, C. S., Nadorff, M. R.,

... & Hansen, K. (2020). The Society of Behavioral Sleep Medicine (SBSM) COVID-19 Task

Force: Objectives and summary recommendations for managing sleep during a

pandemic. Behavioral Sleep Medicine, 18(4), 570-572.

Pirouz, B., Arcuri, N., Maiolo, M., Talarico, V. C., & Piro, P. (2020). A new multi-objective

dynamic model to close the gaps in sustainable development of industrial sector. In IOP

Conference Series: Earth and Environmental Science (Vol. 410, No. 1, p. 012074). IOP

Publishing.