Question

What is the main objective of material planning? What are the basic questions addressed by material planning?

Answer 1

Material planning :-

Material refers to the input which is required for the production process to be converted into output. It can be

• raw material
• semi finished or
• finished material.

Planning refers to deciding in advance for the future course of action. It is concerned with

• what to do?
• how to do?
• when to do?

So material planning refers to deciding in advance about 'What, How and When' materials are required by the organisation for the production process.

There are 3 basic questions which are addressed by material planning. They are as follows:-

1. What kind of materials are required by the firm? {WHAT}
2. The quantity of materials required by the firm? {HOW]
3. At which point of time materials are required by the firm? {WHEN}

The objective of material planning are as follows:-

1. To provide specific direction for handling and managing material in proper manner.
2. To predict about future course of action and the demand for end product.
3. To achieve the overall objective of the firm.
4. To balance the demand for material with the supply of the material.
5. To have availabilty of appropriate quantity whenever required.
6. Maintain minimum inventory to survive in the situation of uncertainity.