The objectives of a system of material control are the following :

(i) Ensuring that no activity, particularly production, suffers from interruption for want of materials and stores it should be noted that this requires constant availability of every item that may be needed howsoever small its cost may be. Lubricating oil may cost much less than the main raw material but, from the point of view of uninterrupted production, both have equal importance.

(ii) Seeing to it that all the materials and stores are acquired at the lowest possible price considering the quality that is required and considering other relevant factors like reliability in respect of delivery, etc.

(iii) Minimisation of the total cost involved, both for acquiring stocks (apart from the price paid to the supplier) and for holding them.


(iv) Avoidance of unnecessary losses and wastages that may arise from deterioration in quality due to defective or long storage or from obsolescence. It may be noted that losses and wastages in the process of manufacture, concern the production department.

(v) Maintenance of proper records to ensure that reliable information is available for all items of materials and stores that not only helps in detecting losses and pilferages but also facilitates proper production planning.