Approaches to Managing the Cost of Materials

Abstract

The cost of materials has often been neglected by managers faced with the problem of reducing manufacturing costs. However, as direct labour, the classical cost reduction target, is reduced by automation the task of reducing materials cost has become much more urgent. As a result of this pressure new approaches have been developed to address the reduction of materials costs. This article reviews and describes five such approaches.

Citation

Schroeder, R.G., Scudder, G.D. and Pesch, M.J. (1986), "Approaches to Managing the Cost of Materials", International Journal of Physical Distribution & Materials Management, Vol. 16 No. 3, pp. 57-69. https://doi.org/10.1108/eb014634