Case Study Article: Material management and inventory planning of a manufacturing company

Materials management is a core supply chain function and includes supply chain planning and supply chain execution capabilities. Specifically, materials management is the capability firms use to plan total material requirements. The material requirements are communicated to procurement and other functions for sourcing. Materials management is also responsible for determining the amount of material to be deployed at each stocking location across the supply chain, establishing material replenishment plans, determining inventory levels to hold for each type of inventory (raw material, WIP, Finished Goods), and communicating information regarding material needs throughout the extended supply chain. In other word, Material management is a scientific technique, concerned with Planning, Organizing& Control of f low of materials, from their initial purchase to destination.