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1. Material selection.
2. Low operating costs.
3. Receiving and controlling materials.
4. Issuance on receipt of app. authority.
5. Identification of surplus stock and take
measures to reduce it.
Organization of MM department.
1. Decision Stage.
2. Sourcing stage.
3. Production planning stage.
4. Stage of ordering.
5. Receiving stage.
6. Inventory control.
Factors providing Economy to MM.
1. Volume of purchases.
2. Plant near the source of Materials.
3. Fluctuations in prices of Materials.
4. Design and engineering of product.
5. Design of equipment.
6. Pre-Inspection of material.
7. Specialized agency for purchasing.
Importance/Advantages/Benefits