MATERIALS MANAGEMENT &

INVENTORY CONTROLBy

Nagesh Talekar

WHERE WE ARE?

• ?

We are in the competitive world

• Customer is the King

BUSINESS GOALS

• PROFITABILITY

• GROWTH (MARKET SHARE)

• PERPETUITY

• IMAGE

CUSTOMER IS THE KING

• UNDERERSTAND CUSTOMER

• CUSTOMER NEEDS

• CUSTOMER EXPECTATIONS

CUSTOMER NEEDS & EXPECTATIONS

• Quality

• Price

• Delivery

• Qty

• Service

4 R

• Goods of Right Quality

• At Right Price

• At Right Time

• In Right Quantity.

COST SUBSTRACTION PRINCIPLE

• COST + PROFIT = (selling ) PRICE

• Rs.100+ Rs.20 = Rs.120.00

TARGET IS COMPETITIVE PRICE

• Cost Control

• Effective and optimum use of 4 M resources.

• A rupee saved is a rupee earned.

4 ‘M’ RESOURCES

• MONEY

• MEN

• MACHINE

• MATERIALS

INVENTORY

• What is Inventory

INVENTORY

• Idle resources (commodaties)

• held in stock,

• which has economic value,

• Waiting for further process or

• Further use.

TYPES OF INVENTORY

• Raw Material

• Work In Process (Semi Finished Goods)

• Finished Goods

• Bought Out Items

• Maintenance,Repair,Operative Items

NEED OF INVENTORY

COST ASSOCIATED WITH INVENTORY

INVENTORY CONTROL