Supply of raw material

Supply of raw material

Supply of raw material is essential for the organization to get right type of raw materialsat the
right time in order to have a continuous production. This factor becomes very
important if the materials are perishable and cost of transportation is very high.
Nearness to raw material is important in case of industries such as sugar,
cement, jute and cotton textiles.The following things are to be considered in this
case:
• When a single raw material is used without loss of weight, locate the plant at
the rawmaterial source or at the market place.
• When weight loosing raw material is required, locate the plant at the raw
material source itself.
• When raw material is universally available, locate close to the market area.