Any ideas why placing Material and Plant in same DIMENSION is a bad idea?

Hi,
I place Material and Plant in the same dimension and a colleague argued that it is a bad combination in the same dimension although he did not explain.
Can you provide some examples to explain to me why  this is a good or bad combination?
What are the rules in making decisions on which characteristics go into the same dimension?
Thanks

1.
m:n relation
If I place a Material and Plant in a dimension, let's say 5 plants and 1000 materials, then there will be 5 x 1000 = 5000 material-plant combinations.
1. Is this 5000 material-plant combination taking place in the Dimension or in the cube?
In the dimension table.
Remember we are trying to see that the size of the dimension table is lot smaller than the size of the fact table.
m:1 relation
Similarly, if I place a Material and in a dimension, let's say 5 Material Groups and 1000 Materials, then there will be 5 x 1000 = 5000 Material-Material-Group combinations.
2. What is the difference between the
5000 Material-Material-Group combinations &
5000 Material-Plant combinations ?
Here the example is wrong. Imagine if 200 materials each fall under one material group, then there are not 5000 combinations but only 5 material groups with 200 each.
3. And why does one improves performance over the other
i.e. why is the
5000 Material-Material-Group combinations better than that of 5000 Material-Plant combinations
In the second case the dimension table is lot smaller and improves performance.

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