What are the different techniques of material costing?
Andrew Campbell
Updated on January 02, 2026
The three methods we will look at are setting of various stock levels, economic ordering quantity (EOQ) and ABC analysis. The idea behind this technique is to identify what levels your stocks are so that you can minimise the costs involved in inventory. The diagram below shows the stock levels.
What are the techniques of material planning?
The techniques are: (i) Moving averages method. (ii) Exponential smoothing and Time series. After the demand forecast, the exercise of materials planning starts. Requirements for various materials are ascertained from the demand forecast.
What are levels of material control?
Material control helps in making available the right type of materials at right time. For this purpose, various material levels are set up such as: •Maximum level •Minimum level •Re-order level •Danger level, etc.
Which one is not a technique of material control?
Maintaining stores ledger is not a Material control technique. A stores ledger is a manual or computer record of the raw materials and production supplies stored in a production facility. It is maintained by the person responsible for these assets, such as the warehouse manager.
What are the factors affecting material planning?
Micro factors: These factors concern changes that may take place within the organization, such as plant capacity utilization, production plan, acceptable inventory holding, lead times, rejection rates, working capital, delegation of power, communication, seasonality, etc. that can affect the material planning.
What is material planner job description?
A Material Planner, or Materials Planner, is in charge of coordinating raw materials as well as other parts and resources that are needed to manufacture products. In short, you’re a bridge between design and production, paid to connect the manufacturing dots.
What is material cost control?
• Material control :: it is a systematic control over the purchasing storing and using of material to minimizing the possible cost. Or it is as the level of material maintenance so as to ensure uninterrupted production and minimizing the investment of funds.
Why material planning is important?
It is a framework to help businesses plan operations, control their inventory and organise their logistics. Done properly, MRP ensures that manufacturers have the right quantity of materials at the right time for production to take place.
Is material planner a good job?
On average, Material Planners are highly satisfied with their job.
How can I be a good material planner?
5 Tips for Making Material Planning More Effective
- Your inventory balances must be accurate.
- Proper forecasting should be a priority.
- Take lead times into consideration during material planning.
- Audit your vendors regularly.
- Understand your capacity.
What is the material control?
“Material control refers to the management function concerned with acquisition, storage, handling and use of materials so as to minimise wastage and losses, derive maximum economy and establish responsibility for various operations through physical checks, record keeping, accounting and other devices. ”
