Purchase & Materials Management ppt.
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ASSIGNMENT 1 THE MATERIALS CYCLE Purchase & Materials Management
description
The presentation explaining the Materials Cycle.
Transcript of 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
