Material Control.

Q23. Discuss the following about the material control:

  1. Meaning,
  2. Objective, 
  3. Requisites,
  4. Techniques.


  1. Meaning of Material Control: The function of proper maintenance of goods in stock neglecting overstocking, under stocking and wastage of goods and proper recording of records is called Material Control.
  2. Objective of Material Control:
    1. No interruption in production.
    2. Material is acquired at lowest possible price.
    3. Minimizing ordering and carrying cost.
    4. Avoidance of abnormal losses and wastage.
    5. Maintenance of proper records for control purpose.
  3. Requisites of Material Control:

    1. Proper co-ordination between all departments.
    2. Setting up suitable purchase procedure.
    3. Use of standard form for all activities.
    4. Preparation of budget to measure performance.
    5. Operation of a system of internal check and continuous check.
    6. Operation of a system of proper recording of stock data.
    7. Storage of goods in a well designed location with proper safeguard.
    8. Proper reporting from time to time of all information to top management.
  4. Techniques of Material Control:
    1. Setting of various stock level.
    2. Economic over quantity.
    3. ABC analysis.
    4. Two bin system.
    5. Establishment of system of budget.
    6. Use of perpetual inventory records and continuous stock verification.
    7. Review of slow and non moving items.
    8. Use of control ratios.


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