Lesson 12: Material Management System

Question 1

could be used as a first step in the process of purchasing. This is used internally to identify a need for an item

Answer 1

purchase request

Question 2

a document which is made by a user to notify the purchasing department regarding needed items and services

Answer 2

purchase request

Question 3

This document specifies quantities, as well as a timeframe for the items requested. It could also contain the authorization information needed to proceed with the purchase.

Answer 3

purchase request

Question 4

allows one to track the vendor quotations for items

Answer 4

purchase quotation

Question 5

could also be created from sales orders by using the procurement confirmation wizard

Answer 5

quotation

Question 6

one of the biggest expenses for most medical institutions

Answer 6

inventory

Question 7

plays an important part in refining the quality of healthcare services, since the lives of the people are on the line, as well as because medical costs are increasing

Answer 7

Inventory control

Question 8

used for maintenance of the attributes of an inventory item, such as product type, item class, item type, etc. If the balance and order activity is zero (0), items can be deleted using this option

Answer 8

Item Tab

Question 9

the minimum quantity of an item that a company has in stock, so when the stock reaches the minimum quantity stated, the item must then be re-ordered (Purchase Order/Production Order)

Answer 9

Re-order Level

Question 10

A basic re-ordering method implemented in many ERPs and other inventory management software is the??

Answer 10

Min/Max inventory ordering method

Question 11

The ——– value is representative of a stock level that prompts a re-order

Answer 11

min

Question 12

the ——- value is representative of a new targeted stock level that follows the re-order

Answer 12

max

Question 13

the starting point of a sale or purchase process

Answer 13

Enquiries

Question 14

leads to getting information from a vendor/supplier for the requirement at hand

Answer 14

Enquiries

Question 15

leads to establishing a connection with the right vendor/supplier in order to get a quotation, place an order, and receive the requirements

Answer 15

Enquiries

Question 16

consist of various pieces of vital information of a requirement towards a sale/purchase

Answer 16

Quotations

Question 17

state important information such as price, delivery times, delivery details, payment terms, taxation, etc.

Answer 17

Quotations

Question 18

a stated intention, either spoken or written, to engage in a commercial transaction for specific products or services

Answer 18

an order

Question 19

From a buyer’s point of view it expresses the intention to buy and is called a ——-

Answer 19

purchase order

Question 20

From a seller’s point of view it expresses the intention to sell and is referred to as a —–

Answer 20

sales order

Question 21

a commercial document issued by a seller to the buyer, indicating the products, quantities, and agreed prices for products or services the seller has provided the buyer

Answer 21

invoice or bill

Question 22

indicates the sale transaction only

Answer 22

invoice

Question 23

is a document for requesting prices and delivery information from a vendor before the purchase order

Answer 23

purchase quotation

Question 24

a document that notifies the purchasing department that certain items or services need to be replenished

Answer 24

Purchase Request or Purchase Requisition

Question 25

The document stipulates a timeframe and required quantities for the items requested. In certain instances, it also contains authorization to acquire assets

Answer 25

Purchase Request or Purchase Requisition

Question 26

a document which records a business transaction between the buyer and the seller

Answer 26

Purchase Order

Question 27

name, address, and contact info of party giving money for goods

Answer 27

Buyer

Question 28

name, address, and contact info of party receiving money for goods

Answer 28

Seller

Question 29

a unique ID number to track each business transaction

Answer 29

Order Number

Question 30

details, quantity of goods, cost per unit, and total price of goods

Answer 30

Item Description

Question 31

where the goods will be shipped

Answer 31

Shipping Address

Question 32

when the goods will be delivered to the final location

Answer 32

Shipping Date

Question 33

location of where the invoice should be sent so the Buyer can pay

Answer 33

Billing Address

Question 34

signature of Buyer offering to buy and signature of Seller accepting

Answer 34

Signature

Question 35

when the business transaction occurred

Answer 35

Order Date

Question 36

The person who creates the document, either a purchase request or order

Answer 36

the originator

Question 37

Inventory items are sold in the order they are purchased. This is the most common technique.

Answer 37

First In, First Out (FIFO)

Question 38

Last to enter the system are sold first. This is common among non-perishable items like petroleum, minerals, and metals.

Answer 38

Last In, First Out (LIFO)

Question 39

Materials are sold based on date they should be consumed, regardless of when it was purchased.

Answer 39

First Expired, First Out (FEFO)

Question 40

This system can be used to manage functions like purchasing, accounting, inventory management, and patient supply charges

Answer 40

Materials Management Information Systems

Question 41

Tracks the receipt and uses it for inventory, and calculates the quantity on hand.

Answer 41

Perpetual inventory

Question 42

An alternative to physical inventory, may be less disruptive

Answer 42

Cycle counting

Question 43

These are supplementary technologies that can be used in combination with the material management system in order to have more accurate and less burdensome inventory counts

Answer 43

Barcode and RFID

Question 44

A process where a business physically counts its entire inventory

Answer 44

Inventory count

Question 45

may be mandated by financial accounting rules or the tax regulations to place an accurate value on the inventory, or the business may need to count inventory so component parts or raw materials can be restocked

Answer 45

Physical inventory

Question 46

What are the material management system issues?

Answer 46

Item indents and re-order level

Question 47

It takes physical possession and legal ownership of the shipment

Answer 47

Receiving Department

Question 48

An internal request is immediately sent to the first approval stage when the approval process is launched.

Answer 48

Message/ Alert Overview

Question 49

Form specifies inventory levels across all warehouses

Answer 49

Item availability

Question 50

the person receiving the product should sign the receiving documents provided by the supplier or shipping company. The person receiving the delivery should inspect the items before signing the receipt and should also initial the packing list. Then, he or she must submit the packing list to the appropriate person (Accounts Payable, Requester, Asset Management) for financial reconciliation.

Answer 50

Signing for delivery

Question 51

departments should refuse to accept shipments if they are unable to confirm that the order was placed by their department, or if the packing appears sufficiently damaged to warrant concern.

Answer 51

Refusing delivery

Question 52

it is important for the supplier to provide the department with a packing list for all shipments delivered to the department.

Answer 52

Record retention

Question 53

Departments should contact the appropriate Purchasing Agent whenever a purchase is received as a partial delivery without acknowledgement or notification from the supplier. This information is typically noted on the packing list.

Answer 53

Partial deliveries

Question 54

Goods can be easily tracked /traced when they are managed by serial or batch. Aging of products can occur if the items are slow moving/stay longer in the warehouse.

Answer 54

Tracking of Goods

Question 55

Persons receiving shipments should, upon acknowledging receipt of an order

Answer 55

Inspecting a shipment