Raw materials inventory department
Raw materials inventory is the collection of inputs that are transformed into finished products. For example, the raw materials inventory for the manufacturing of cement at a cement plant includes limestone, clay, gypsum, etc. This department looks after the management of the raw materials inventory.
The main tasks of the department are repackaging and labeling raw materials to make them ready for use in the production process, storing the raw materials safely and protecting them from damage and pilferage, updating and maintaining records of the quantities of various raw materials, arranging for the replenishment of stocks in liaison with the purchase department and auditing the raw materials periodically. Several firms use materials planning systems like Materials Requirement Planning (MRP) to manage raw material inventory effectively. Chapter 13 discusses in detail how an MRP system works.
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