Materials management in operations management
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Answer:
The need for materials management was first felt in manufacturing undertakings. The servicing organizations also started feeling the need for this control. And now even non-trading organizations like hospitals, universities etc. have realized the importance of materials management. Every organization uses a number of materials. It is necessary that these materials are properly purchased, stored and used.
Any avoidable amount spent on materials or any loss due to wastage of materials increases the cost of production. The object of materials management is to attack materials cost on all fronts and to optimize the overall end results. Materials management connotes controlling the kind, amount , location and turning of the various commodities used in and produced by the industrial enterprises. It is the control of materials in such a manner that it ensures maximum return on working capital.