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A material control system refers to a systematic and scientific method of planning, purchasing, storing, issuing, and accounting for materials in an organization so that the right quality and quantity of materials are available at the right time and place, at the minimum possible cost. Materials often constitute a significant portion of total production cost, especially in manufacturing industries; therefore, effective control over materials is essential for cost reduction, efficiency, and uninterrupted production. The primary objective of a material control system is to avoid wastage, pilferage, overstocking, understocking, and unnecessary capital blockage, while ensuring smooth production operations and proper cost ascertainment. An efficient material control system must satisfy certain requisites to function effectively. First, there should be proper coordination between different departments such as purchasing, stores, production, and accounting. Coordination ensures that material requirements are accurately estimated and supplied without delay. Second, there must be a clear classification and codification of materials. Each item should be assigned a unique code number to avoid confusion, duplication, and errors in identification. This also helps in maintaining accurate records and simplifies communication across departments. Third, standardization of materials is an important requisite. Standardization reduces the variety ____ __________ ____ _____ _______ _____ ____ _____.
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