material supply
The previous page showed the difference between material management and physical distribution in detail as well as global. The documentaryflow for the reception of incoming goods have been marked with red ciphers, corresponding with the direction of this flows in-between the sections.The buying of materials is in some industries a question of timing, because of the simple fact that the rest of the year the material is not for sale. For instance in the agriculture this fact is often actual in buying-situations, where a kind of strategy leads to a certain timepoint where a lot of buying-activities are centered around this timepoint to produce a halfmaterial such as apple-sirup, dried apple's, applemousse etc. for conservation afterworth this period. This whole scenario needs an extra capacity to store, extra investment etc. Perhaps it is possible to import these goods, or to find a specific supplier, whose speciality lays in delivery of this (half)material. This possibility saves for sure a lot of investment. In other cases the storage-documentary can be send the best to the section productionorder as soon as the material is stored. The paragraph production tells more about this situation. Sometimes a restricted amount is the only possibility for an orderamount, or a lucrative discount has been coming up, in which case a scaling is actual between the factors costs/supplyroom. This kind of scaling is a serious matter, so there are a lot of mathematical methods developed, based on small and big industrial experiences. Every financial and scientific calculator has special functions and buttons for this area of economy.

The buying of the materials asks most of the time a special knowledge because of the physical condition of the goods. The mainstream of the contents of this electronic essay has an accent on the routing in the flows for documentary and goods. In this way it is possible to develop your own company-structure by analyzing the sections and flows in-between. If you print this on paper it will give you a complete economic lay-out which you can fill in with your own company details, so it gives an overview on activities. The logic of these activities can be recognized in the table of contents where the whole traject from material till final product is treated.

The physical aspect of MATERIAL SUPPLY is most of the time restricted to a calculation of supplyspace, so it makes clear which costs of supply you can expect. The number of units on a quadrant as well as the investment of capital in the goods are evident for a good calculation. Both factors, investment and space are related to the method of production. The way in which a company functions, namely the type of productioncontrol after the orders are verificated, is also important for a calculation of supplylevel.The type of control is ordercontroled if the production is customized, or supplycontroled if the productionorders are coming from the warehouses. With a regular production on certain times the control can be called programcontroled. The next paragraph production tells more about it.

Because of this kind of factors it is for sure that there must be a good briefing in-between the sections BUYING, PRODUCING and SELLING for a good calibration of the activities and rentability. Just because of these facts it is important to updated the level of information in-between these sections.

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