Materials Management

Definition: Materials Management is the whole of all organizational functions responsible for the planning, sourcing, stocking, manufacturing, control and distribution activities of materials used in the internal and external fulfillment of demand.
MM typically includes all logistical activities that control the transmission of tangible, physical materials through the value chain such as shipping and transport, distribution and warehousing, quality control, work in progress and manufacturing.
Various techniques are used such as Inventory Turn Over Ratio, Days Inventory Outstanding, ABC Analysis, EOQ ordering, and Just-in-time to save large amounts of cash for the company.

💡

Learn more about Materials Management.

More on inventory: ABC Analysis, Inventory, Inventory Management, Vendor Managed Inventory, Weighted Average Cost of Inventory.

MBA Brief provides concise yet precise definitions of organizational concepts, management methods, and business models as taught in an MBA program.

We keep it short and provide links to high-quality websites where you can learn more about your topic.

Add MBA Brief to your desktop / iPad