Materials Management in a beverage and spice manufacturing firm: A system dynamic analysis

Adarsh, P K and Shiva Prasad, H C and Mathew, Asish O and James, M J (2015) Materials Management in a beverage and spice manufacturing firm: A system dynamic analysis. International Journal of Management, IT and Engineering, 5 (7). pp. 160-170. ISSN 2249-0558

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Materials are the chief single element of cost in any manufacturing industries. Recently, anew initiative named as Make in India, proposed by the government of India includes major new schemes designed to facilitate investment, foster innovations, protect intellectual property and build best in class manufacturing infrastructure. Materials form an integral part in all this function and managing them will be a primary step to achieve this milestone. Moreover material is a dynamic asset and as the statistics elicits, materials cover 70 percent of the cash outflows in any organization. Managers need to monitor and control this material that entrench more than half of the cost of any production process. A proper materials management results in improving the profits, reduce lead time, balancing the return on investment, develop a better communication between the supplier and the firm, and thus mitigate the shortages and short supplies. This paper focuses on the need to recognize the materials management function in a beverage and spice manufacturing firm in order to improve its Return on Investment. The work showcases by reducing the current asset through implementing proper managing materials, the Return on Investment improves. Data’s was collected through a structured questionnaire from thirty respondents. A System dynamics model is used to collect a feedback system with interdependent variables that have nonlinear relationships and the model fits these characteristics of inventory system.

Item Type: Article
Uncontrolled Keywords: Materials management, inventory management, Return on Investment, Current asset, System dynamics
Subjects: Engineering > MIT Manipal > Humanities and Management
Depositing User: MIT Library
Date Deposited: 13 Jul 2015 09:23
Last Modified: 13 Jul 2015 09:23

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