5 Questions
What is included in the definition of material?
Raw materials, equipments, loose tools
What is the primary objective of material management?
Low Price
What is the core function of supply chain management according to the text?
Material Management
Which of the following is not an objective of material management?
Maximizing Profit Margin
What does material management involve in terms of controlling and regulating material flow?
Assessing variables like demand, price, availability, quality, and delivery schedules
Study Notes
Material Definition and Management
- Material includes all kinds of goods, wares, and merchandise, including raw materials, semifinished goods, and finished goods, as well as spare parts, supplies, and services.
Objectives of Material Management
- The primary objective of material management is to ensure the availability of the right materials, at the right time, in the right quantity, and at the right price.
Supply Chain Management
- The core function of supply chain management is to manage the flow of materials, goods, and related information from the raw material stage to the end customer.
Objectives of Material Management (Exceptions)
- One of the objectives NOT included in material management is to maximize profits.
Material Flow Control
- Material management involves controlling and regulating material flow, which includes planning, organizing, and supervising the movement and storage of materials, from raw material sourcing to end-product delivery.
Test your knowledge of production and material management with this quiz on Unit III notes. Explore the concept of material as a fundamental component in production and the principles of material management, including purchasing and coordination for optimal expenditure.
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