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Q.What is Materials Control? State its objectives.

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Materials Control is the systematic control and regulation exercised over the purchasing, storing, and using of materials, so that there is a regular, uninterrupted supply of material available for production, without the business either running out of stock or tying up excessive capital in idle, overstocked material.

Objectives of Materials Control:

  1. To ensure that material of the right quality is available in the right quantity, at the right time, and at the right place, whenever production needs it.
  2. To avoid UNDERSTOCKING, which causes production stoppages and lost output, as well as OVERSTOCKING, which locks up working capital unnecessarily and raises storage and carrying costs.
  3. To minimise wastage, pilferage, and deterioration of material while it is held in store.
  4. To provide management with accurate, timely information on stock levels and the cost of material consumed, supporting planning and control decisions.
  5. To make economical bulk purchasing possible wherever it genuinely reduces cost, without accumulating stock beyond what is actually needed. …

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