Material management and inventory planning of a manufacturing company

Abstract

Materials management is a core supply chain function and includes supply chain planning and
supply chain execution capabilities. Specifically, materials management is the capability firms use
to plan total material requirements. The material requirements are communicated to procurement
and other functions for sourcing. Materials management is also responsible for determining the
amount of material to be deployed at each stocking location across the supply chain, establishing
material replenishment plans, determining inventory levels to hold for each type of inventory (raw
material, WIP, Finished Goods), and communicating information regarding material needs
throughout the extended supply chain. In other word, Material management is a scientific
technique, concerned with Planning, Organizing& Control of f low of materials, from their initial
purchase to destination.