A Study of Policies of Management of Material in McDonalds and Taj Hotel

Author: Arvind Kumar Yadav

Abstract:
The material management concept advocates integrating all major activities, which contribute material cost to a single department. In this concept the material management department is responsible for purchasing, inventory control, stores and other related activities. Many times in corporate activity, there is compartmentalization of basic management functions concerned with materials. The purchasing department operates separately and other areas like stores and inventory control operate independently. This creates conflicting objectives from the overall organizational point of view e.g. purchasing department may prefer to buy large quantities on discount without considering the warehousing and carrying costs. The primary goal of materials management is to obtain materials at lowest price alongwith consideration of consistency in quality and supply. Another Goal is to maintain a minimum inventory of materials so that minimum working capital is blocked in inventory. The objective here is to ensure availability of raw material without adversely affecting the smooth flow of production. At the same time, quality of raw materials must be consistent and above all minimum funds should be blocked in all sorts of inventories. The task of material management is not only important but is a complex one. It requires integration of various departments where inventories are used, produced or kept. This is why usually it is advantageous to have integrated materials management systems.

Keywords:Corporate Policies, Inventory/Stock levels, Lead Time, Integrated Materials Management Systems.

DOI:

International Journal of Trade & Commerce (Vol: 6 Issue:2)