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Hi tutor,
When we look into the material planning and operational variance
If we evaluate the purchasing manager we should look to the priceand if we evaluate the production manager we should consider the quantity of the material used more and not the price .
or should consider the price also when we talk about the production manager,
Thanks.
The production manager is generally responsible for the efficiency of material usage and the mix of input materials. The price variance is typically not under the control of the production manager and should not be a primary factor in their evaluation.
So when evaluating the purchasing manager, we should focus on the material price variance, as it reflects the effectiveness of procurement and supplier management.
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