Effective materials management reduces procurement,transportation,and production costs through economies of scale.

Question

Quizplus · Accepted Answer

Effective materials management can help reduce costs through economies of scale, which occur when increased production or purchase volume decreases per-unit costs. By managing materials efficiently, companies can reduce the amount of waste, minimize stockouts, and negotiate better prices with suppliers, among other things. This can help them achieve cost savings throughout the supply chain, from procurement to transportation and production.

Effective Materials Management Reduces Procurement,transportation,and Production Costs Through Economies of Scale