Materials managers are constantly confronted with the following problems and requirement:
Inventories account for a large portion of the working capital requirements of many businesses. This makes materials and / or inventory management a major problem requiring constant attention by all three management levels.
At present, the problem of materials management has become even more acute due to market conditions and inflation.
Effective materials management and materials control is found in an organization in which individual have been vested with responsibility for, and authority over, the various details of procuring, maintaining, and disposing of inventory. Such a person or persons must have the ability to obtain, coordinate, and evaluate the necessary facts and to take action when and where needed.