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Financial Management and Materials Department
The materials management is of utmost importance in a manufacturing firm and covers the areas such as procurement, storage, maintenance and supply of materials and stores. This entails keeping the material in good condition and sufficient quantity so that the production schedule continues smoothly. The inventory of any items is required to be maintained at an optimum level, Level. Neither excessive nor inadequate.
The financial management and materials management interact with each other and the financial management has a specific role to play. It is no denying tile fact that, generally, the materials constitute a substantial portion of the cost of production which can be controlled and possibly can be reduced also by keeping a strict vigil on the financial implications of material movement in the firm. The finance manager and the materials manager may come together while determining the Economic Order Quantity, Safety Level, .storing Place requirements, Stores Personnel requirements, etc. The cost aspects of all the decisions are to be evaluated against the expected savings. For this, the finance manager has to come forward to help the materials manager.
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