material management

Question 1

Material Management

Answer 1

Purchasing
Stockroom

Question 2

– oversees the ordering of supplies and
the processing of invoices from vendors

Answer 2

Purchasing

Question 3

maintains security and inventory levels
and issues supplies throughout the facility

Answer 3

Stockroom

Question 4

Clinical laboratories as a business require raw
materials for successful operation. Whereas,
equipment idled by breakdowns or lack of supplies is
an economic loss for business, the same situation in
the clinical laboratory can seriously interfere with the
delivery of patient care

Answer 4

Purchasing

Question 5

GOALS OF MATERIAL MANAGEMENT:

Answer 5

➔ Supplies arrive in a timely manner
➔ Spoilage is reduced to a minimum
➔ Back orders and delays are avoided
➔ Storage space is used to the best advantage
➔ The most economically advantageous price is
obtained
➔ Financial resources are not tied up in inventory

Question 6

SEQUENCE OF PURCHASING:

Answer 6

1. Product Specification
2. Orders
3. Receive
4. Inventory
5. Record

Question 7

In order to determine the best products for laboratory
use, time must be spent on product research
leading to the development of product specifications.

Answer 7

Product Research and Specification

Question 8

is a document authorizing the purchase of a
product or service from a vendor
● purchase order could be classified as release orders
or standing orders:

Answer 8

Purchase Order

Question 9

an annual contract in
which the company agrees to deliver goods
at a predetermined price and on an
established schedule.

Answer 9

Standing order

Question 10

goods should be unpacked and inspected as soon
as possible to ensure that everything is delivered or
that some acknowledgement of back ordered items
is made. Damaged or defective goods should be
identified early in order to assure replacement
credit.

Answer 10

Receiving and Accounts Payable

Question 11

3 methods to track inventory levels namely:

Answer 11

Perpetual system
Periodic system
Random checks

Question 12

are used to document the value
of supplies at a specific time. This snapshot
verification procedure is a key part of financial
accounting and is especially useful in confirming the
accuracy of perpetual systems, which can easily
become distorted if not meticulously maintained.

Answer 12

Random checks

Question 13

keep account of the inventory
each time a product is used

Answer 13

. Perpetual system

Question 14

is more common at the bench
department level. Once a week or at another
specified time the stock level is counted, and
appropriate supplies are ordered.

Answer 14

Periodic system

Question 15

is that point at which on hand supplies
are sufficient to carry the laboratory through until
goods on order are received

Answer 15

The low level

Question 16

is that level which will meet the
laboratories requirement for a longer period of time,
such as several months to a year

Answer 16

the upper limit

Question 17

The Primary Factors Determining the said limits are:

Answer 17

● Anticipated delivery time for each item.
● Available storage space
● The shelf life of item
● The anticipated rate of usage

Question 18

• One method for determining
  when and how much to reorder is to establish a set
  point at which inventory is to be recorded and a
  reorder to level to be maintained

Answer 18

Minimum-Maximum

Question 19

• a major technique developed by
  manufacturers to take advantage of inventory
  management opportunities is a Japanese model
  called just in time ordering.

Answer 19

. Just in time

Question 20

which answers the question of how much to
order at one time

Answer 20

EOQ - economic order quantity

Question 21

also referred to as the reorder point which
provides the base or safety level for reordering
inventory

Answer 21

EOP - economic order period system

Question 22

which helps establish the best times to order
to take advantage of the EQP and EOP

Answer 22

ROT - retention of title

Question 23

– determining the level of inventory
needed is based on the workload of the laboratory

Answer 23

. Annual usage

Question 24

this information can be
obtained by dividing the amount of supplies ordered
in a year by 365 days.

Answer 24

Average daily usage

Question 25

– the cost of running a centralized
purchasing department is directly tied to the number
of purchase orders placed, and the associated work
involved with keeping track of invoices as products
are shipped and received. This figure is obtained by
dividing the expenses of the purchasing section by
the number of purchase orders issued.

Answer 25

. Cost of ordering

Question 26

this involves decisions
based on bulk orders, space utilization, and whether
it is better to have the product on hand or in the
supplier’s warehouse. When the vendor is holding
the stock, the institution’s money is available for the
purposes

Answer 26

Annual holding cost

Question 27

– cost per unit is a straightforward
calculation once the decision has been made as to
be the best price available. Factors such as quantity
discounts and container size affect this decision.
Dividing the purchase price by the container size
provides this value

Answer 27

Cost per unit

Question 28

the amount of lead time, or advantage
notice, needed between placing an order and its
arrival is an especially important consideration. It
influences the minimum inventor that must be kept in
stock, as well as the quantity that needs to be
requested.

Answer 28

Lead time