Purchase & Materials Management ppt.

ASSIGNMENT 1THE MATERIALS CYCLE

Purchase & Materials Management

The Receiving Process

Submit to Purchasing Department, the user & accounting department

The Receiving Clerk In Charge

Inspecting the Material

Quality Control Head in Charge

Return Policy

If the Material is Rejected

Quality Problems

Inventory Control

If the material passes inspection

Safety MarginsSafety Margins Cost of InventoriesCost of Inventories

Inventories solve materials management problems but there are strong incentives for maintaining minimum stocks.

Materials should be made available when needed

Balance the cost of carrying stock against cost of possible shortages

Inventories

Every minor delay in every minor component would cause a serious shortage.

Production rates of components and subassemblies always have to be perfectly synchronized.

To avoid defects in scheduling & errors in forecasting.

The Final Stage

THE MATERIAL CYCLE IS COMPLETE