12: MATERIAL MANAGEMENT SYSTEM

Question 1

_________ can be used to manage functions like purchasing, accounting, inventory management, and patient supply charges (Materials Management Systems, 1996)

Answer 1

MATERIALS MANAGEMENT SYSTEM

Question 2

__________ has many sections. The upper portion contain master information. The “item” tab is used for maintenance of the attributes of the item.

Answer 2

ITEM MASTER MAINTENANCE

Question 3

form specifies inventory levels across all warehouses.

Answer 3

ITEM AVAILABILITY

Question 4

_________ is the minimum quantity of an item that a company has in stock, so when the stock reaches the stated minimum quantity, the item must then be re-ordered.

Answer 4

REORDER LEVEL

Question 5

_______________ is the basic reordering method implemented in many ERPs and other inventory management software.

Answer 5

MIN/MAX INVENTORY ORDERING METHOD

Question 6

__________ value represents the stock level that prompts the reorder.

Answer 6

Min

Question 7

________ value sets the new targeted level that follows the reorder.

Answer 7

Max

Question 8

____________________ is often interpreted as the main difference between the Min and Max value.

Answer 8

Economic Order Quantity (EOQ)

Question 9

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

Answer 9

PURCHASE QUOTATION

Question 10

_____________ is part of the list that a company keeps from whom they purchase their supplies. They look for vendors who has on-time performance, offers reasonable costs, provides high quality products and services, fully licensed, bonded, and insured product and services, and has good business practices.

Answer 10

PREFERRED VENDOR

Question 11

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

Answer 11

PURCHASE REQUEST/PURCHASE REQUISITION

Question 12

______________ is legally binding contract which shows that the seller has already accepted the order issued by the buyer (SAP, 2012).

Answer 12

PURCHASE ORDER

Question 13

The request for approval is sent to the first approver when the document fails to meet the approval requisites. Once the document has been approved an internal notice is sent to the originator. He can then process the document.

Answer 13

APPROVAL PROCESS

Question 14

For temporary movement, a ____________ is issued

Answer 14

returnable gate pass

Question 15

For permanent movement, a _____________ is given.

Answer 15

non-returnable gate pass

Question 16

Expiration dates and decrease in values of items must be reflected in the financial records so discrepancies in financial statements will be prevented.

Answer 16

EXPIRED STOCK/INVENTORY

Question 17

When undecided about how to handle defective goods, whether to be sold as scrap, reworked, returned, or used as it is, a quarantine location or warehouse can be used to temporarily house them until a final decision is reached.

Answer 17

QUARANTINE STOCK/INVENTORY

Question 18

FIFO

Answer 18

First In, First Out

Question 19

LIFO

Answer 19

Last In, First Out

Question 20

FEFO

Answer 20

First Expired, First Out