MATERIAL BUDGETING

MATERIAL BUDGETING

the process of preparing material budget or purchase budget in terms of quantity and money value of materials to be procured in given period of time.

BENEFITS

1. help to estimate material prices during a year
2. help to analysis material requirement
3. reduced risk of inventory planning
4. maximum purchase lead time
5. reduces transportation cost
6. better supplier relations

MATERIAL CONTROL

the American production and inventory control society defines material control as  "the function of maintaining constantly available supply of raw materials, purchased parts, and supplies that are required for manufacturing of products"