The main objective of material planning is
A)To minimize the expenses for storing excess inventory.
B)To balance the demand for materials with the supply.
C)To shorten the duration of the procurement cycle.
D)To eliminate excess inventory.
E)To prevent lost sales.

Question

Quizplus · Accepted Answer

The main objective of material planning is to balance the demand for materials with the supply. This ensures that the organization has enough inventory to support their operations without overstocking and incurring unnecessary expenses. Additionally, material planning helps to prevent lost sales by ensuring that the necessary materials are available when needed. While minimizing expenses and eliminating excess inventory are important considerations in material planning, they are not the primary objectives. Shortening the duration of the procurement cycle is also an important consideration, but it is a means to achieving the main objective of balancing supply and demand.

The Main Objective of Material Planning Is