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MATERIAL MGT - Coggle Diagram
MATERIAL MGT
Ope Environment
Government, Economy, Competition, Customers, Quality
- Order Qualifiers: price, quality, delivery,..
- Order Winners: characteristics encourage customers to choose the products. Ex: fast delivery
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Materials Mgt
Work-in-process (WIP)
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- Reduce cost -> Increase profit
- Increase sales -> Increase cost of labor and material -> Not always increase profit
Objectives:
- Max the use of the firm’s resources
- Provide the required customer service level
Costs:
- Direct labor/ material: increase and decrease with the quantity sold
- Overhead (all other costs): not vary directly with sales ~ constant
SC Concept
Conflicts from different Objectives of MKT, Production, Finance dept
Action: Integrated materials mgt or logistics org is responsible for supply, production and distribution (JIT)