1. Inventory and Stores Control : Inventory control is a systematic procedure for ensuring the availability of items necessary to meet the production requirements at optimum cost. It includes:
a. Requisition of materials according to requirements at appropriate time.
b. Keep updates records of the materials received issued and balance.
c. Decision about the optimum size of the order ( EOQ)
2. Receiving and Stories : The main activities of this section are:
a. To accept the delivery of purchased materials to verify them with the purchases order and packing slip to inspect them and to prepare the goods received not for stores accounts and to route the received materials to stores or user department.
b. To store the materials properly according to the policy and ensure their quick identification.
c. To verify the materials physically at periodic intervals and to record discrepancy if any along with the reasons.
3. Shipping / Physical Distribution : It is concerned with the distribution of the finished goods from the production department and to verify the quality:
a. To receive the finished goods from the production departments to verify them and store them properly till they are distributed.
b. To pack and label the finished goods to make than ready for transport to customers.
c. To prepare shipping documents such a packing slip bill of material railway receipt lorry receipt etc. Which are forwarded with the shipment?
d. To report about the shipment to the accounting department for billing the customer to sales department for order closing and customer notification.
4. Material Handling : The material handling function involves:
a. To handle in plant materials through trucking pallets containers etc.
b. To maintain the material handling equipments and other incidental items like pallets containers etc.
5. Traffic : Traffic function is concerned with the incoming consignments of raw materials and outgoing shipments of finished products. The former is sometimes attached to the receiving function and the latter to shipment. However when the company maintains its own traffic fleet or it the traffic services are hired on regular basis, it can exist as a separate function of materials management . it includes:
a. To carry raw materials from the supplier plant or railway goods office or such destinations.
b. To carry finished goods to customers railway goods office branch wholesalers or retailers.
c. To administer freight rates routes etc. If transport services are hired.
d. To maintain the fleet to delivery vans if vehicles are owned by the company.