Transcription of CHAPTER-2 INTRODUCTION TO MATERIALS MANAGEMENT
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CHAPTER-2 INTRODUCTION TO MATERIALS MANAGEMENT
30 CHAPTER-2 INTRODUCTION TO MATERIALS MANAGEMENT MATERIALS constitute a major cost component for any Industry. The total cost of installed MATERIALS (or Value of MATERIALS ) may be 60% or more of the total cost (Stukhart 2007, Bernold and Treseler 1991), even though the factory cost may be a minor part of the total, probably less than 20-30%. This is because the manufactured item must be stored, transported, and restored before it is put in place or "consumed" at the site. The total cost of MATERIALS will include, in addition to the manufacturer selling cost, the cost of procurement (cost of placing processing and paying the material , physical distribution, the distributor's cost, and the transportation of MATERIALS ), and the site-handling costs (cost of receiving, storage, issuing, and disposal).
of procurement (cost of placing processing and paying the material, physical distribution, the distributor's cost, and the transportation of materials), and the site-handling costs (cost of receiving, storage, issuing, and disposal).
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