Material master data is used for which of the following activities?

Material master data is a critical component in the procurement process as it includes key information about materials that an organization uses in its operations. This data encompasses details such as material descriptions, specifications, pricing, and inventory levels, which are essential for ensuring that procurement activities are executed efficiently and effectively.

In procurement, utilizing accurate material master data helps in optimizing the ordering process, managing supplier relationships, and maintaining appropriate inventory levels. This data ensures that the purchasing team can make informed decisions about which materials to buy, from which suppliers, and at what prices. Additionally, it allows companies to streamline their supply chain operations, minimize costs, and maintain sufficient stock levels to meet production and operational needs.

The other activities listed—employee performance evaluation, financial forecasting, and risk management—are not directly related to the material master data, as they rely on different types of information and data sets tailored to those specific functions within an organization.