Advantages of good material control system?

Answer 1

The main advantages of a good system of material control are as follows:

1. Reduce production delays by ensuring unrestricted and continuous supply of material on time.
2. Minimizes the capital investment on the stock of materials.
3. Reduce the cost of storage and issuing of materials.
4. Reduce wastage and loss of material through pilferage, theft, spoilage, evaporation etc.
5. To ascertaining the position of inventory and accurate valuation of closing stock is possible by introducing perpetual inventory control system.
6. Ensure the purchase of material at reasonable price.
7. It help the management in initiating and formulating proper purchase policies of materials.
8. It reduces the annual operating costs by introducing suitable infrastructure and material handling devices.
9. Improve aesthetics of the manufacturing unit by planning storage of material.