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Importance of Costs of Risks in Material Management

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  • Kulińska Ewa

    (Opole University of Technology, Faculty of Production Engineering and Logistics Institute of Industrial Processes Generating Capacity, Department of Logistics, Opole, Poland)

Abstract

The article is an analysis of materials management in different areas of functioning of manufacturing enterprises, with particular reference to the costs generated by it and all possible risk factors. The overall objective is to demonstrate, on the basis of the study in the furniture industry, that the occurrence of a risk factor in one area of a company has financial consequences for even a few more stages of the process. This affects the calculation of the actual cost of implementing the process and naturally carries consequences in the profit achieved by the company. For the analysis, the well-known algebraic principle of logic characterization of V.A. Gorbatov was applied.

Suggested Citation

  • Kulińska Ewa, 2014. "Importance of Costs of Risks in Material Management," Foundations of Management, Sciendo, vol. 6(1), pages 7-20, June.
    • Handle: RePEc:vrs:founma:v:6:y:2014:i:1:p:7-20:n:1
    DOI: 10.1515/fman-2015-0001
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