Lecture-1

From the lectures I learnt about the materials such as what is the meaning of
material and its two different types. Direct materials are the ones which goes for
the final product for business purposes and indirect materials are directly
opposite to direct materials like they only support business production. I also
learned about material management that it a function responsible for coordination
of planning, sourcing, purchasing and controlling materials in an optimum manner so
to provide a pre decided service. I learned how vital it is to ensure the steady
flow of goods for production purposes to satisfy customer demand
I further learned that there are many objectives of material management, the main
five are
right price, right quality, right time, right source, and right quantity and these
all play most important role to get right price.

Lecture -2
The lecture was on Inventory, Inventory management, functions of Inventory and its
types.Inventory is essential part of organization.It is classified as a current
asset on a company's balance sheet.It is the one that helps any organization to
fulfill its orders.Inventory management refers to process of ordering,storing and
selling company's inventory. This process starts when a company receives a
customer’s order and continues until order ships. There are many inventory
management terminologies, some of them are MRP(material requirement planning)which
is a manufacturer calculated price that is not the reduced price that can be
charged for a product,SO(sales order),PR(purchase request),minimum order quantity.
The inventory turnover is a process that calculates the costs of goods sold
divided by average inventory.The sell through rate is equal to no of sales divided
by stock on hand.
Functions of inventory are to facilitate cushion period and to facilitate cost
reduction which means it will give some time frame so that it will be easy to
plan if risk is happening or any risk of destruction.
Types of inventory: Raw material inventory is the one that is bought from a
supplier that is used to produce something and finished good inventory is the final
product which is ready for dispatch.