CHAPTER ONE

INTRODUCTION

1.1     Background of the Study

To manage materials is to manage the life of an organization. No organization can survive without adequate management of materials. The bottom line and effective flow of input material either purchased from outside manufacturing or made in house. Stocking of materials of minimum cost is a total management function of planning, organizing and controlling all the activities that contributes to materials cost materials management thus, encompasses the total process from a need for material/or services or works arising, right through to the supply of works to the user and in many causes, the product thereby being made available to the final consumer or customer from the above, it vital to carry out an effective control over materials by designing a separate function/department to be in charge of materials and this will be termed materials management department. This department should have streamlined duties of total cost control, elimination of materials waste and profit optimization. Material management problems can be functionally traced to quality, quantity and cost and an appropriate fashion of these functions that contribute to materials cost into an integrated system will largely determine its efficiency and profitability and improved productivity. Management interest is necessarily confined to attain total control but have been extended into the arena of achieving a total breakthrough in the practice of effective materials management system. Most management activity concerns itself with the design and operation at cost. There are many management with the scientific methods and techniques, which have been developed and perfected, but it must be achieved at once that such functions and economic characteristics can be effectively operated within the scope of materials management concepts.