(i) Material Selection:
Correct specification of material and components is determined. Also the material requirement in agreement with sales programmed are assessed. This can be done by analyzing the requisition order of the buying department. With this standardization one may have lower cost and the task of procurement, replacement etc. may be easier.
(ii) Low operating costs:
It should endeavor to keep the operating costs low and increase the profits without making any concessions in quality.
(iii) Receiving and controlling material safely and in good condition.
(iv) Issue material upon receipt of appropriate authority.
(v) Identification of surplus stocks and taking appropriate measures to produce it.
The outcome of all these objectives can be listed as given below:
(i) Regular uninterrupted supply of raw-materials to ensure continuity of production.
(ii) By providing economy in purchasing and minimizing waste it leads to higher productivity.
(iii) To minimize storage and stock control costs.