MATERIAL PLANNING

Material planning determines the requirements of all kinds of materials to meet the production needs economically.

BENEFITS

1. a well designed material planning is valuable in terms of money and quantity
2. better forecasting of future needs
3. effective material budgeting
4. purchase  is based on material planning

FACTORS INFLUENCING MATERIAL PLANNING

1. MICRO FACTORS
   • price trends
   • business cycle
   • import policy of govt
   • credit policy
2. MACRO FACTORS
   • corporate objects
   • working capital
   • seasonality
   • delegation of power
   • communication system