MATERIAL MANAGEMENT

This book is brought up in accordance with the subject of Material Management. In this book, the subject matter is expressed in clear way so that each and every reader understand the subject easily. In the book, I clearly mentioned the Meaning of Material management, Objectives, Functions, Steps in Material Management with suitable examples. Hence, this book will help the readers to understand material management. I believe that with the help of this book, every reader gets the scope of knowledge which helps them in getting the understanding of Inventory control basics. I wish that this book will win the heart of every user.

The main features of the book are simple understanding and key concepts.

This book is very helpful to readers to learn about Material management with suitable examples.

This book is useful to everyone in Cost accounting field like students, Accounts executives, Analysts etc… .
It is hoped that this will facilitate a better understanding of the subject matter.

I welcome any valuable suggestions regarding this book in a better and improved way. Suggestions will be incorporated in the subsequent editions.

All the best …
Chandra Sekhar

CONTENTS
I. INTRODUCTION
II. OBJECTIVES OF MATERIAL MANAGEMENT
III. FUNCTIONS OF MATERIAL MANAGEMENT
IV. STEPS IN MATERIAL MANAGEMENT
     A. Purchasing and Receiving
          1. Purchase Requisition
          2. Purchase Order
          3. Receiving the Materials
          4. Approval of invoice
          5. Making the Payment
   Important aspects in Material Procurement
         1. Economic Order Quantity
             (a) Ordering cost
             (b) Carrying cost
         2. Maximum Level
         3. Minimum (safety) Level
         4. Re-order Level
         5. Average Level
         6. Danger Level
     B. Storing of Materials
   Aspects of Stores Control
         1. Stores Layout
         2. Classification and Codification of Material
         3. Stores Records
        4. Inventory Control
              (a) Perpetual Inventory System
              (b) ABC System
              (c) Just in Time Inventor
              (d) VED Analysis
              (e) FNSD Analysis
     C.  Issue Control
    Aspects of Pricing of Issues
          1.  FIFO
          2.  LIFO
          3. Simple Average Cost Method
          4.  Weighted Average Cost Method
          5.  Periodic Average Cost Method
          6. Standard Cost Method
           7. Market Cost method
     D.  Material Losses
           1. Waste
           2. Scrap
           3. Defectives
     E.  Inventory Turnover Ratio
V. PROBLEMS AND SOLUTIONS
        Problem and Solution 1
        Problem and Solution 2
        Problem and Solution 3
        Problem and Solution 4