Total cash available

Cash excess or deficiency

Cash balance

Cash disbursements

Financing

Optimum utilization of machineries

Easy supervision of materials as

well as personnel

Optimum utilization of space

Easy material handling including

receipt, dispatch and storage

Reduce and control obsolescence

of the goods by following appropriate method

to ensure that material and

components are available for production, and final products are ready for

dispatch

not only to maintain minimum

inventory but also ensure right quantity of material is available at the right

time to produce right quantity of final products

to ensure planning of all

manufacturing processes, the scheduling of different job works  to minimize or remove any kind of idle time

for machine and workers

ensures that inventory levels are maintained at its minimum levels

Promote

efficiency

in production and purchasing by minimizing the cost of providing an adequate

level of customer service

Maximize

the

level of customer service by avoiding understocking

Requires substantial investment of

time and capital

It helps procurement team in

scheduling purchase of necessary material

It helps the sales team in

determining delivery dates for final products

Material planning is useful in

determining cash flow requirement based on material requirements and final

dispatch schedules