Page 184 - DMGT525_MATERIALS_MANAGEMENT

Unit 13: Evaluation of Materials Management

Stock-out: When at a given moment in a given inventory there is not the quantity of a part or a Notes
product that is demanded. A stock-out occurs in a distribution center when there are orders that
can not be filled within their due date.

13.7 Review Questions

1. What do you mean by the evaluation of materials management?
2. Explain the organization of materials management.

3. What are the various problems faced in the evaluation of materials management?
4. Explain the procedure followed in the evaluation of materials management.
5. What are the criteria considered in the evaluation of materials management?
6. Explain reporting.
7. Discuss the concept of purchasing and the various terms related to it.

8. Explain material cost index and vendor rating index.
9. Make a flowchart for the evaluation of materials management.
10. Define:

(a) Reporting
(b) Purchasing
(c) Store index

Answers: Self Assessment

1. Materials management 2. Stock-out
3. Improvements 4. India’s

5. Lead time 6. Management by objectives
7. Criteria 8. Actual performances
9. Top management 10. Reporting
11. Corrective measures 12. Frequency

13.8 Further Readings

Books Ramakrishnan. R V, Tony Arnold. J R (2007). “Introduction to Materials Management”.
Pearson
K. Shridhar Bhat, “Production and Materials Management”. Himalaya Publishing
House
Chary. S.N., “Production and Operations Management”. Tata McGraw Hill
Gopalkrishanan. P, Sundaresan. M, “Materials Management: An Integrated Approach”.
PHI Learning Pvt. Ltd.

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